Finding the Best Investment

In the thread, numerous suggestions were shared by members. This is in response to the query of what would be considered as the best place for property investment. Because the question covered a large scope, different promising properties from several countries along with its features were mentioned. In addition, issues regarding the risks of investing, return of investment, safety, economy, and the climate of each area were discussed. Some of the places mentioned by members were the United States, United Kingdom, Spain, Dubai, Cyprus, Bulgaria, Morocco, Egypt, Thailand, Montenegro, Costa Rica, Brazil, Calabria, and Australia.

Thus, Bulgaria’s property market is not slowing down despite problems in other European countries. This is according to the latest figures from the Bulgarian National Statistical Institute.

Studies show that while many other areas in Europe are seeing house prices take a slump, residential property prices in Bulgaria have increased by almost seven percent during the first quarter of 2008.

The most expensive properties are the ones in the capital city of Sofia. This is where prices are expected to continue to rise. An annual growth of up to 20 percent is expected by the end of the year.

Moreover, there is a clear tendency among new EU entrants to have certain jobs and wealth of the country concentrated in the capital city. This phenomenon is definitely expected in Bulgaria despite much of the international property development being focused on the ski areas and the resorts along the Black Sea Coast. Hence, these areas are considered to be more speculative than Sofia – a place where a majority of smart money is being invested.

Compared to other European capitals, Sofia is still an affordable place to purchase real estate properties despite speculations of changes over the next twelve months. With regards to real estate prices, Sofia is still likely to climb up the ladder and catch up with most Western European cities. The only backdrop would be the general level of wages that will continue to rise while the real estate price growth continues.

Most analysts also expect that the number of potential buyers in Bulgaria from 2008 to 2009 will be significantly reduced as compared to the number of Bulgarian developers in 2003, 2004, 2005, 2006 and even in 2007.

Moreover, the British and Irish investment appetite for relatively low grade and low returning overseas rental real estate, which fuelled the price boom until recently, has fallen in line with British and Irish house prices.

Furthermore, emerging markets like the ones in Bulgaria suffer as fewer investors clamour the market. There are also concerns about land prices being too high. Aside from this, their infrastructures still need some improvement.

Thus, there is also a considered oversupply in areas like Bansko, which is the heart of the ski region. Unfortunately, investors were the ones who financed the construction of recent infrastructures and not their municipalities. But despite the problems in Bulgaria’s real estate market, it is still regarded as an area that has room for further growth in the next three years.

Discuss and learn about previous property market trends in the buying overseas property forum.



2 Responses to “Finding the Best Investment”

  1. Price Waterhouse Coopers and the Urban Land Institute (February 2008) published their 5th annual report into "Emerging Trends in Real Estate Europe". The report concludes that despite 2008 being a tough year for global property markets, there are excellent prospects for investment in Turkey.
    "Capital will go where opportunities are and Asia is motoring."
    "People who must spend go to Asian countries; people who are not under pressure continue to do deals in Europe and in Europe, the odds will slide from West to East – Russia and Turkey are the hot tips. Turkey is the India of Europe"
    Whilst Russia is rated as the top choice in terms of economy strength and investment return; it is also rated as the riskiest market. Turkey on the other hand, is predicted to out perform the rest of Europe and is rated as the No 2 entry for hot spots within Europe for hot investments but also seen as a very low risk market.
    The report considers all of the different variables and concludes on the investment prospects for different types of dwellings – retail, mixed use, hotels, industrial / distribution, office accommodation and residential property. The report cites which markets offer the best prospects for investments and which ones to avoid. In all six categories, Russia and Turkey feature together as the best prospects for investment – each alternating between first and second position in different categories.
    For a copy of the full report, please email me.

  2. I personally think that one major location that is selling and holding its prices at the moment is the Algarve in Portugal. Yes we are all having to suffer in this time of doom and gloom but when you look at a loction that has it's own sub tropical climate less than 2 and a half hours flight from the UK and Ireland but still give the lifestyle and quality that you would expect from a Southern Europe destination it really is worth looking at investing into. If any information is required on this or on the ins and outs of buying in the Algarve please drop me a line to [email protected].


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