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Bulgaria Property Investment Facts

Discussion in 'Bulgaria Property' started by Jake, Dec 14, 2006.

  1. Jake

    Jake New Member

    This is fine article that was recommended by my property agent in Buglaria Home For You. Im very pleased with their work and I want to share this with other people that want to invest in Bulgaria


    Because of a sustained media offensive, Bulgaria is well known as one of the emerging European investment property markets offering the greatest potential for profit and yield - but what exactly is fuelling the sustained success of the Bulgarian property investment sector?There are many fundamental economic, political and geographic reasons why property investment in Bulgaria represents a good medium to long term opportunity and this article offers an overview of the main driving forces behind the growth in the real estate sector.

    Firstly one has to consider the natural appeal of Bulgaria. It is a country that has suffered little from the ravages of concrete over-construction, industrialisation and even globalisation and as a result the natural landscape of the country remains intact. Inland, Bulgaria has retained a unique rural charm which is embedded in traditional farming methods and the Bulgarian people’s natural respect for the countryside. Growing numbers of visitors are attracted by the fact that Bulgaria offers them a glimpse of old, unspoilt Europe.

    Even in the country’s capital city of Sofia, where major domestic and international investment is being ploughed into the regeneration of the city which suffered a spate of ugly construction during Communist rule, there are stunning monuments and beautiful buildings to behold (see image). The money is pouring in from Europe and beyond to improve the infrastructure and create sustained horizontal foreign direct investment based upon the creation or relocation of companies and the creation of employment opportunities to buoy up the local economy.

    Beyond the rural interior and capital city of Sofia, Bulgaria has the stunning Black Sea coastline that is of attraction to tourists, retirees and those looking for a second home in the sun and it has a wealth of fantastic ski resorts which are growing in sophistication and popularity.

    Therefore property investors have a series of local areas to target depending on whether they want to focus on attracting income from the tourist trade, expatriate professionals or from commercial property or capital growth by reselling to holiday home seekers or retirees. Property buyers in Bulgaria also have access to mortgage facilities which opens the market up to far more people.

    Although property prices in Bulgaria have increased quite substantially in the last 24 months they remain artificially low and restricted by the rules of the Constitution that restrict foreign ownership of land and property in Bulgaria. This is one of the fundamental reasons why investors believe there is room for substantial growth in the real estate sector over the medium to long term. Changes to these rules in the Constitution had to have been made for Bulgaria to join the EU in January 2007 but currently a foreign buyer still has to purchase via a local Bulgarian company if he wants to own the land on which his investment property sits! Realistically it will take until 2014 for the changes to the Constitution of Bulgaria to be passed and for it to be 100% legal and straightforward for a foreign investor or purchaser to own direct freehold title to land and property in Bulgaria.

    It is believed that real estate investment in Bulgaria will therefore remain an exceptional opportunity until the country joins the EU in Jamuary 2007 and a good long term capital growth appreciation prospect at least until the necessary changes to the constitution are made at which point the numbers of those seeking property for sale in Bulgaria when all the risk from the process has been removed will likely surge.
     
  2. thetravelbug

    thetravelbug Banned

    While I agree with some of this article, have to disagree with others:

    1. Bulgaria did have a stunning coast but much now spoiled by over development and bad planning
    2. Property prices along coast and in ski resorts are artificially high, not low! Substantial media hype has caused this!

    Rachel
     
  3. Jackie9

    Jackie9 New Member

    It depends on what you consider "over developed' or "artificially high" (for prices).
    Take photos from the Spanish coast (Costa del Sol) with 25- storey "skyskrapers" and find such monsters in Bulgaria.

    If you think that ski apartments in Bansko for EUR 1200 sq.m. are expensive - move to France and buy for EUR 8000 sq.m.

    At the end of the day - everyone buys what considers most appropriate for his own circumstances.
     
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