The number of property investors interested in carrying out projects in Bulgaria's small towns is growing, according to Bulgarian-language daily 24 Chassa.

The newspaper said that major property contractors in Bulgaria had accumulated capital in recent years, and most had decided to re-invest it in smaller towns.

Still, the main share in the small-town property market was held by local contractors making their first investments.

The factors encouraging property investors to invest in residential property and complexes were economic stability and a high return on investment.

Investors were also taking into account population migration, the newspaper said.

The supply of property under construction increased in Veliko Turnovo, Blagoevgrad, Pazardzhik and Pleven. The price of one-bedroom apartments varied from 296 to 460 euro a sq m. Two-bedroom apartments went for from 291 to 459 euro a sq m, 24 Chassa said.

Investors expected that foreigners would be interested in three-bedroom apartments in Bulgaria’s smaller towns. The average price of such apartments was 350 euro a sq m.