Overseas property investors who are planning to invest in a major city could snap up a relative bargain in Sofia, according to new figures.

A study by ERA showed that the price of residential property in the Bulgarian capital was lower than in any other European capital city, reports the Novinite news agency.

The research stated that people entering the property market in Sofia could make a purchase for an average 78,000 euros.

Meanwhile, the country was found to have a high home ownership rate, with 94 per cent of Bulgarians owning their own home in 2006.

ERA stated that this boosted the potential for buying and selling real estate, therefore providing a further boost to the Bulgarian property market.

This comes after Lewis Charles Sofia Property Fund said that the high level of home ownership in Bulgaria meant that the country did not have much a domestic buy-to-let market.

A spokesperson for the firm told the Telegraph that those hoping to invest in rental accommodation purchase in major tourist places, as there would be more demand in these areas.