Bulgarian Property Market

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Over the past year, property in Bulgaria has been one of the fastest growing markets in the World. Since 2003, property prices went up by an average of around 45% across the country. However, regions such as Sofia and the Black Sea beach resorts (one being Sunny Beach) have experienced 50% - 100% increases.

Investors who have never considered Eastern Europe as part of their strategies are now rethinking their moves. Projected growth of over 20% to 30% in the next 12 months is a return that will attract novices and professionals alike.

Investors in the know consider Bulgaria to be the hottest property market around. Bulgaria is currently one of the strongest markets in terms of growth in the world.

Why is growth so strong?

One of the main reasons for strong growth is due to the improved economic conditions and political and social stability within the country over the last 5 years.

But most probably the single biggest factor is the rising number of tourists that are visiting Bulgaria. Today, Bulgaria is considered to be the fastest growing tourism market in World. And with EU accession in 2007 this should continue to increase over the coming years.

Property in Bulgaria offers a great investment considering the long term prospects of the country and offers considerably better value for money than in other European destinations.

The majority of the purchases in Bulgaria are for holiday homes, often with a view to retirement in later years. However, there are an increasing number of investors who are buying property now with a view to making a capital gain in the short, medium or long term. This increasing interest, along with other factors such as the rise in tourist numbers and increasing awareness of the opportunity makes Bulgaria one of the best places to invest in today.

Bulgarian real estate prices are far lower than other destinations in Europe but the acceptance of Bulgaria into the European Union provides unprecedented growth potential that will certainly boost the prices of the Bulgaria real estate in the near future. The Bulgarian real estate market is still relatively unexplored and undeveloped, when comparing it to other countries such as Spain and France.

In 2003 the proceeds from tourism comprised 13% of the country’s GDP. Bulgaria’s rising property prices have been greatly influenced by the European Union, which has had a tremendous impact already. This will be even greater after the country has joined the EU in 2007.

Joining the EU means investing in Bulgaria is a fantastic proposition. Already, foreign and EU money is pouring into Bulgaria to stimulate economic growth. The building of new properties will be encouraged, but monitored (and property taxes slashed) to bring it in line with the rest of the EU.

Why the Black Sea Coast and Ski Resorts?

The property prices on the Black Sea Coast and Ski resorts in Bulgaria grow much quicker than any other areas due to their popularity. The Black Sea Coast stretches all the way down the East side of the country, most of which is flat, which ensures that most of the resorts have panoramic sea views. The Ski resorts consist of 3 major resorts; Bansko, Pamporovo and Borevets, with Bansko being the top in terms of infrastructure, facilities and weather. But correspondingly Bansko is the most expensive in terms of property prices, however these continue to rise. Also the resort will be one of the hosts of the 2014 winter Olympics if Bulgaria wins its bid.

Bulgaria will sign an “open-skies” agreement before joining the EU in 2007, thus opening up the market to low cost carriers such as Easy jet and Ryan air, who are currently waiting to get started. This will cause the number of tourists visiting the Black Sea Coast and Ski resorts to soar

The most valuable coastal property is that which offers beach frontage or proximity to beaches. This is due to the desire and therefore the rentability.

In the Ski resorts the proximity to the ski lifts and amenities give higher value to the real estate, as well as views and nature.

The most profitable form of investment is buying units in new, off-plan developments..

By buying before the project is complete you will benefit from excellent market growth, receive superior build quality and receive excellent payment terms.

How safe is it to invest?

Bulgaria is a politically stable country. The introduction of a currency board in 1997 stabilised the country's economy and currency.

Bulgarian laws are now converging with the laws in most countries of the European Union, and Bulgaria has one of the most liberal foreign investment laws in the region, with investor protection at the forefront of importance.

Almost all of the current real estate law is the same as for most other European Countries and the likelihood of any adverse effects on investors in today’s real estate market is as unlikely as in other overseas destinations such as Spain and France.

Summary reasons for buying in Bulgaria

Property prices – Prices in Bulgaria are up to five times less than that of other European countries. Prices are set to soar over the next few years.

Lower costs of living - Approximately 30% lower expenses for your everyday life than in Spain and other European countries, with dinner for two costing about £8.

Superb climate – The Black Sea Coast has more than 150 days of sunshine per year. The average temperature from April through to September is 24ºC, reaching a sizzling 30ºC in the height of summer. Ski resorts enjoy not only a long and healthy ski season, but also excellent year-round tourism from people who prefer natural, mountain settings such as hikers, mountain bikers, nature lovers etc.

Easy Access – Bulgaria is only two and a half to three hours away from most UK airports. Low-cost airlines will be entering the market soon (open-skies agreement) and the number of direct flights is increasing

Holiday destination - Bulgaria is the fastest growing holiday destination in the world according to tour operators such as Thompson and First Choice.

Stability – Bulgaria is politically stable, is a full member of NATO and will be joining the EU in 2007. As from 1997 the local currency (Lev) was pegged to the Euro (German Deutschmark).

Varied landscape - Warm, sunny beaches and cool alpine mountains – just several hours drive from each other. Unlike most overdeveloped tourist destinations, Bulgaria still has a lot of natural beauty left intact and is protected under strict Bulgarian environmental law with many UNESCO protected areas.

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