Intense construction in Sofia led to a deficit in free plots, which in turn affected prices, an imoti.investor.bg report said.

As a result of this phenomenon the price of land increased faster than the price of property, the report said.

In some Sofia districts like Banishora, Boyana and Lozenets construction plots increased in value by as much as 18 per cent.

High investor interest in these districts hiked the prices. Bulgarian and Western companies have launched a number of property projects in these residential districts.

Central Sofia witnessed a price increase of 11 per cent.

The land market in Plovdiv was also evolving at a fast pace, the report said. Though the number of projects there was on the rise, land prices registered a slight decrease.

Land prices in Varna went up by 16 per cent on the average. Increase in Bourgas varies from eight to 18 per cent.