By Tem Pearson
Anyone with any interest in property investment abroad would
have been hard pushed not to have heard about the potential
growth area of Bulgaria. During the last 12 months, property
prices have risen, on average, by around 25 percent. But
remember, this is an average and some savvy investors have
achieved a gain of 100 percent, in the last year!
This is not to say that the market has hit stagnation. On the
contrary, Bulgaria has a very rosy future with further gains
predicted. Currently, property is the fastest growing asset in
the country and is still showing considerable growth.
Bulgaria has become increasingly stable over recent years,
economically, politically and socially. The country is going
join the EU in 2007, which suggests that property prices will
continue to rise, over the coming years.
Tourism is also a growing industry with approximately 4
tourists visiting, last year, an increase of 13.5 percent on
previous 12 months. Interestingly, last year, the number of
British tourists increased by over 60 percent. One of the main
reasons that Bulgaria is so popular with tourists is that it
offers such a wide range of holiday types including, ski,
mountains and beach holidays. This year-round appeal means
tourists flock to Bulgaria every month of the year, perfect
the buy to let investor.
At the moment, foreign individuals are not allowed to own land
in Bulgaria. Rather confusingly, foreign investors are allowed
to own buildings but not the land! This will change when
Bulgaria joins the EU in 2007, as property laws will have to
harmonise with the rest of Europe, therefore allowing
individuals to purchase land in Bulgaria. The relaxation of
these rules is likely to lead to a considerable boom in
ownership and consequently in property prices. If you want to
get in before the rush, it is possible to purchase property
through setting up a Bulgarian company which costs
New build prices in Bulgaria currently start at approximately
£20,000 for a brand new studio apartment; up to £120,000 for a
luxury three bed apartment with superb views. Individual
properties that require renovation vary dramatically in price
and vendors are often up for negotiation so do your research
and get haggling!
Buying land is also a very good way of maximizing gains in
Bulgaria. Consider that a new build, off-plan apartment will
sell at around 900 Euros per square metre, but that land with
planning permission would sell at around 60 Euros per square
metre. A conservative expert suggests that a property could be
built (including the land costs) for 400 Euros per square
metre. As you can see, the figures certainly stack up if you
can cope with project managing a new build in a foreign
A real winning point that Bulgaria has to offer is the sheer
variety of resorts. Beach lovers will be delighted with the
choice of resorts, namely Albena, Golden Sands, Sunny Beach
Duni. Bulgaria has a Black Sea coast that is served by two
airports, Varna and Bourgas. It is the beach resorts that have
seen the largest surge in property building in recent years,
with most off-plan apartments being available on the coast.
As well as the beach resorts, Bulgaria has internationally
renowned ski resorts, which double up to offer wonderful
mountain hiking opportunities, during the summer months. The
Balkan Mountain range is the backbone of Bulgaria and offers a
range of ski resorts for both beginners and experienced
Bansko is currently considered to be the main resort; however,
there are many other smaller resorts to choose from, should
want to get off the beaten track.
Sofia is the capital city of Bulgaria and offers wonderful
investment opportunities. Many large international companies
are investing in Eastern Europe, due to the cheaper yet
dedicated workforce. More jobs mean more employees requiring
central accommodation, a dream for property investors.
Bulgaria has so much to offer the international property
investor, with something for every taste and budget. With a
wide range of resorts and a growing economy, Bulgaria justly
deserves a second look!
About The Author: Providing essential information on buying
Bulgarian property, Tem Pearson is dedicated to offering all
the necessary information for people looking to buy property
for full details. ©2006.