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.