INVESTING IN BULGARIA

Whether looking for a second home or simply an investment to broaden ones portfolio, Bulgaria offers not only some of the most breathtaking scenery within a few hours of the UK, but perhaps more importantly, Bulgaria has experienced strong growth in recent years with property values increasing by around 50% per annum from 2002-2004.

In 2000, Bulgaria opened negotiations with the EU and in 2004 joined the NATO. In 2004, the Government succeeded to finish negotiations with the EU and on 25 April 2005 signed the Accession Treaty with the perspective to enter the EU in 2007. Large amounts of EU money are being made available for infrastructure projects (Roads, Railways and Airports) and for agriculture.

There is a stable economic and political climate in Bulgaria and a parliamentary republic ruled by a democratically elected government.

Bulgaria has one of the best educated workforces in the world, second only to the US for the number of top flight science and engineering graduates per capita.

According to The Independent, “The country is undergoing a dramatic programme of development which means good potential for investors.” Many blue chip multinationals have plans to locate and invest heavily in Bulgaria. The longer term economic benefits of such large scale inward investment are obvious, not to mention the laying of firm foundations for investors seeking lucrative rental agreements with employees of such organisations.

Bulgaria has a thriving tourism industry that has experienced very strong growth over the past few years with the majority of visitors already coming from the EU, Bulgaria has something to offer everyone from sunny beaches, ski resorts, golf courses, hunting, fishing and some spectacular hill walking and trekking. With such a diverse range of activities on offer and a year round tourism industry, rental yield on properties can be as high as 15% in some areas.

• Capital growth of 50% per annum in recent years
• Low cost of living
• High rental yields
• Ascension to EU on 1 Jan 2007
• Thriving tourism industry
• Stable political environment
• Strong economy
• Highly educated workforce
• Massive funding from EU to improve infrastructure

 

Quoted from Sofia Echo 12th June 2006

Environment
Everyone’s into Bulgarian real estate these days. The market reached incredible heights in 2004, boosted by foreigner interest and by the increased purchasing power of Bulgarians due to the increased availability of mortgage loans.

Hundreds of agencies have sprung up, not just in the big cities but in the resorts too. Others just have a website and appeal straight to the foreigners – mostly Brits and Irish – who are keen to invest in cheap Bulgarian property, frequently with the aim of using it themselves as a holiday home but also fairly safe in the knowledge that the money invested will appreciate faster than if it were sitting in a bank at home. The expectation that Bulgarian real estate will continue to rise up to the country’s EU entry in January 2007 keeps the market buoyant.

Despite an average rise of 25% last year (this figures changes depending which survey you read!), prices are still relatively low by EU standards, though Sofia is looking less of an investment these days, with so much new construction going on and rental demand fairly low. Its not just foreign interest that has bumped up real estate prices – as the Bulgarian economy becomes stronger so people have the disposable income to buy property and the mortgage boom over last couple of years has meant that even those without savings can buy a first or second home.

Other boom areas are the Black Sea, especially the southern stretch, which has begun to resemble the Costa Del Sol with its concrete developments, and the ski town of Bansko.

There are of course many opportunities outside of this – there are other large ski resorts for instance and quite a potential for the development of new ski resorts in those places where there are currently only one or two pistes.

Bulgaria is lucky in that almost everywhere here is beautiful and it is difficult to say that one place in the mountains is better than another, though of course location and proximity to cities, airports, etc. is of importance if you are looking to rent the property out. Some of the old houses in mountain villages can still be bought for 3 or 4000 euro!

The attractive natural environment, preserved folklore, customs and crafts, architecture reserve settlements, traditional cuisine and famous Bulgarian hospitality make this an ideal rural holiday location. Or you can head for the ski slopes in winter or the warm sandy beaches in summer. Bulgaria has something for everyone.