Property in Bulgaria became on the average 1.6 per cent more expensive from April to June 2006. The average price of sq m of property reached 819.3 leva. The increase was highest in bigger towns and cities. The tendency for the most expensive property to be located in Bulgaria's capital remains valid. Real estate in Sofia costs on the average 1322.7 leva a sq m. The increase, compared to prices in the first three months of 2006 is 0.7 per cent. Sofia mayor Boiko Borissov said that the best time for investment in Bulgaria's capital was before the country's EU accession in 2007, when prices were expected to rise. Over the past few years Sofia attracted considerable investment because of its developing infrastructure, Borissov said. British-owned property in Bulgaria's capital exceeded 10 000 real estates. According to Canada’s trade commissioner, David McGregor, Bulgaria’s business environment has “a pretty good story to tell”.Costs are low, the country is headed for European Union accession, and there are favorable policies towards investors. However he says that there is still what to do. There is also a new tendency that can be observed on the Bulgarian property market. Increasing number of real estate seekers prefer to purchase property in the villages located close to Bulgaria's capital instead of apartments in Sofia. Villages located up to 30km away from Sofia offer houses at affordable prices and attract the attention mainly of young families unwilling to risk with untraditional purchase. Modern buildings in the capital cost more and to bring prices down constructors offer unfinished apartments for sale. The Iskar gorge region offers property at affordable prices, mainly villas that do not require major restructuring.Young families are interested in the acquisition of villas and the modification of such into permanent residence. Transportation to the capital is unproblematic due to the speed of trains and the expected completion of Sofia's underground. As a whole foreign investors are attracted by the lower prices in Bulgaria. Another market tendency is increased demand for smaller property with higher quality. Young couples in particular search for fully furnished apartments without a need for further repair. Regardless of the existing potential in many cities throughout the country, the capital Sofia still remains a priority city for the development of new schemes for investments. With its population of over 1.2 million people and the many foreign companies that constantly create new jobs and, therefore, need modern offices, the city can be regarded to a great extent as a country in itself. It is a place where the standard of living, the purchasing power and the hunger for modern commercial buildings are much higher than in other Bulgarian cities. Investment, as well as any other form of economic activity on the territory of Sofia, is facilitated by the fact that respective programs have been adopted for the development of the urban infrastructure, the city environment, the restructuring of the municipal economy and the development of sectors with a direct bearing on the life of citizens. These are primarily transport, central heating, cleanness, water supply and sewerage. Sofia and the surrounding territory is a preferable place because of the high standard of life, the numerous places of interest, and cinemas, theatres, museums. The well-developed economy, the rich culture life, the fact that Sofia is the capital of Bulgaria makes it one of the most attractive cities for real estates investment.