Buying property in Bulgaria

Bulgaria has attracted a lot of attention over the last two years, as foreign buyers and investors flock to its emerging property market. In 2004, foreigners invested over Euro 500 million  in Bulgarian property, compared to Euro 98 million in 2003.  Frequently listed in the top 20 places to buy a foreign property, Bulgaria is now firmly on the property investment map.

With EU entry forecast for 2007 investors are keen to buy into the Bulgarian market to reap the inevitable rewards of capital appreciation and establish a rental income in a country that has demonstrated increasing tourism over the last few years.  In the first 6 months of 2005 alone, over 2.7 million tourists visited Bulgaria; with a 42% increase in the number of British tourists.  By 2020 the World Trade Organisation has predicted that the number of foreign tourists visiting the country will increase to 10 million.

The most popular regions for foreign property investors can be broadly categorised into 3 sectors: the Black Sea Coast, Sofia and the mountain ski-resorts.  Other buyers are attracted by the old houses inland that can start from as little as £1,700 and the medieval charm of picturesque cities and villages like Veliko Turnovo, Arbanassi and Tryavna in central Bulgaria.
Enjoying over 300 days of sunshine a year, boasting a coastline that stretches over 380km, spectacular mountains, eco-tourism and some of the most affordable property in Europe, there is no wonder that Bulgaria is attracting such interest. Property prices in some regions have doubled in the space of the last two years alone – though new apartments on the coast are still available from as little as £20,000.

Despite recent bad press about developers and estate agents in Bulgaria over-estimating rental returns and exaggerating capital growth rates, Bulgarian property remains under-valued and is a good investment.

Bulgarian accession to the EU. The green light for the serious investor?

Bulgaria has recently met all the causes and articles for accession to the EU. Full entry is scheduled for early 2007.  The country will immediately benefit from worldwide acceptance and a massive investment from the European Community.

Bulgaria is at present a relatively poor country.  The average monthly wage is just €280. Membership of the European Community will ensure that the transportation network, domestic and commercial utilities sector, labour rates as well as the fiscal and banking systems will all be brought into line to mirror their more prosperous European neighbours.

With the increasing prosperity, along will come the private and corporate investors eager to cash in on the country's new found wealth.  Over the past three to four years, Bulgaria has seen consistent rises in the property market between 20 to 30%.  A few pioneering investors have taken advantage of this increase but have tended to be either the long-term corporate investor or highly speculative property gambler.

Entry into the European Union have seen the property prices of new member countries almost double within a one to two year period.  Ireland, Hungary, and even Spain are prime examples of this phenomenon.

Bulgaria is set to be no different.  Property prices and the cost of living are amongst the lowest right across the European states.  Massive price increases are predicted within the next 12 to 18 months to echo prices amongst other member states.

The country itself offers a vast selection of city, coastal, mountain and rural investment opportunities. 

Sofia, the capital, is experiencing massive corporate investment from companies relocating to take advantage of the low labour and rental cost:

The Black Sea Coast, with resorts such as Sunny Beach, Golden Sands and St. Vlas, experiences higher summer water temperatures than the Mediterranean along the Spanish mainland. Tourism is increasing massively year on year as is the number of  visitors investing their own home in the sun.

The mountain resorts, Borovetz, Pamporovo and Bansko offer the longest ski season in the whole of Europe. Prices for ski apartments are around 70% cheaper than other popular European resorts and property purchases are booming.

Existing rural properties can often be purchased for less than the price of a car. Hardy purchasers can expect huge bargains, huge potential and tiny prices.

Many experts agree with www.investmentpropertybg.com that prices are due to surge over the coming months in anticipation of accession. Returning holidaymakers, impressed by the value for money and excellent selection of properties that Bulgaria offers, will further fuel the property boom. The time for the serious investor to take advantage is now.

Bulgaria’s Hottest Property Spots

Hot-spots

Sunny Beach
The country’s largest package holiday resort has a good beach with excellent leisure facilities, entertainment and activities. It is close to Bourgas’ international airport and has been a focus for building and buyer interest, although over-development is becoming a problem, with a glut of new properties meaning unreliable rental returns.


Golden Sands
A large package resort with a good beach and facilities set in pretty surroundings on the forested coast north of Varna. Easy access to Varna airport and the city. Strict building controls have limited development and ensure strong demand for property.

Bansko
The country’s largest ski resort, which is enjoying major infrastructural investment, including a new golf course. The negative impact of rapid development could be reduced by a clamp-down on new developments in the area.

Pamporovo
European’s most southerly ski-resort is increasingly popular with the British

Veliko Tarnovo
The picturesque countryside around this historic city is the target for a growing number of foreign buyers looking for peaceful rural retreats and renovation properties. The beautiful scenery has led the area to be dubbed “Bulgaria’s Tuscany”.

Sofia
Renovation properties and off-plan developments in the country’s capital are popular with investment buyers for their solid rental returns and capital appreciation.


Rising Stars

Balchik
A small seaside town, north of Varna, that is near a new golf course development. Easy access to Varna city and its airport.

Byalla
A quiet beach resort favoured by Bulgarian holidaymakers, which is set in beautiful countryside halfway between Bourgas and Varna.

Ruse
Provincial city on the Danube that has a hinterland of unspoilt countryside dotted with villages.

Sozopol
An atmospheric seaside town with good beaches that is close to Bourgas airport.

Borovets
A small ski resort near Sofia that has been slated for major investment.