Bulgaria's capital has been revealed as a great place to invest in property in a major European city.

Research by ERA Bulgarian Real Estate stated that the city was the cheapest capital in Europe. Figures showed that while cities such as Luxembourg had average property values of ?485,000, Sofia offered prices of about ?78,000.

ERA also reported that there was lots of activity in the city's property market because most people owned their own homes.

Speaking to the Novinite news agency, ERA spokesperson Teodora Dimitrova stated that the high home ownership levels in Sofia acted as a "powerful engine" for the local property market.

He said this was because it boosted the potential for selling and buying real estate in the city.

According to World Investment Services, the popularity of eastern Europe among tourists could make countries such as Bulgaria highly lucrative for foreign property buyers.