Return on investments in Bulgarian residential properties is getting more and more dependent on the fluctuations in the sale price than on rental yields, says a report of the Bulgarian economic think-tank Industry Watch. The report covers the residential market development in the country during the first three months of 2008. Rental levels for two-room flats, which are in the heaviest demand, increased by 4 percent in the period from December 2007 to March this year. The sale prices of residential buildings are recording a faster growth, extending the period during which an investment pays out from 188 to 234 months as a ratio between the purchase price and the rental levels. According to Industry Watch the credit crunch in the United States has had a negligible impact on the property market in Bulgaria, but negative influences have not been ruled out in the long term.