Bulgarian Investment Property

Bulgarian Investment Property - Further optimism for Bulgarian property market

Property investment throughout Europe remained strong last year (2005), with the likes of Bulgaria and Cyprus continuing to offer viable alternatives to traditional investment options in Spain and France.

In an evaluation of some of the most popular locations, fly-2let has reaffirmed recent reports that Bulgaria's stature in the European property market is continuing to rise, referring to findings by the BulgarianNational Statistical Institute that the average house price rose by 36.6 per cent last year.

One of the most important and perhaps underestimated factors in a country's potential as an investment hotspot is its capacity to attract tourists and this is something that Bulgaria has rapidly addressed in the last ten years.

With a thriving season and the Black Sea region growing more popular each year, money is currently pouring into the Bulgarian economy and the effect on the housing market has been pointed. The marketing of Varna has been particularly impressive, with tourists now exploring the previously underappreciated city.

A travel report in the Times has acknowledged the importance of building a solid tourist industry.

"As Bulgaria approaches full membership of the European Union (scheduled for next year), many of the restrictions that have so far held back Sofia's potential as a weekend-break location will be eased. There are, for example, no low-cost airlines operating directly between Britain and Sofia. Once an 'open skies' market exists, it is hard to believe that others will not explore this virgin territory."

With annual house price increases of 70 per cent in some of Bulgaria's smaller cities, the progress has clearly already begun, but prime minister Sergey Stanishev has reaffirmed today that every effort will be made to update the country's infrastructure to ensure there is nothing to deny EU accession next year.

It is generally agreed that a successful bid for the 2014 Olympics will also have a huge influence on property prices in Bulgaria.

According to GamesBids.com, Mr Stanishev has confirmed his commitment to bringing the Games to Bulgaria in a letter to the International Olympic Committee.

"Bulgaria's government will support the initiative and the institutions in the country will do their best for the organisation of the Olympic Games and the preservation of the Olympic movement values," he said.

Novelty and originality is certainly playing a much greater role in the decisions made by property investors than it did five or ten years ago, with investors much more likely this year to explore the less predictable property markets. Better and cheaper access is unquestionably a factor, although there is also a discernible culture of adventure that is persuading many people to look more closely at Europe's developing and relatively undiscovered markets.

Bulgarian Investment Property

Bulgarian Investment Property - The best mid-term property investment




As authorities in Bulgaria prepare to debate legislation on the Black Sea building regulations. Bansko gains momentum. Bulgarian property is still gaining momentum. The number of Britons buying Bulgarian property in 2005 rose by 77 per cent on the previous year.

With E.U. entry in 2007 and flight increases to regional airports, and analysts' expecting a 15-20 per cent rise over the next year, demand is set to soar even more. However according to some property abroad experts, the outlook for investment property in some of Bulgaria's Black Sea Coastal resorts, may not be as viable as some investors had hoped.

Some property abroad experts are warning investors against the risks of buying Bulgarian property along the coastline. Locations like Sunny Beach are completely over-developed. All the prime coastal land was developed a few years ago. Now the new developments are being built approx three kilometres inland from the beach and already many developers are struggling to sell them.

Many short term British investors that purchased investment property right on the coast have been having some trouble trying to quickly 'flip' their plots of land and properties.

However there is light at the end of the tunnel as authorities in Bulgaria prepare to debate legislation on Black Sea coastal regulation which prevents excessive construction.

This can only create a positive outcome for Bulgarian property investment, as the objective is to prevent supply outweighing demand.

When legislation changes, then the prices could soar even more as the balance will shift the other way. This is good news for current Bulgarian property owners as well as anyone looking to invest in 2006.

The best time to buy is definitely right now!

Property around Varna is a mid to long term property investment now. Treat it as such.


Bulgarian Investment Property - The besy mid-term property investment

Bulgarian Investment Property - Foreign investors push up Bulgarian property prices

As the growth of the property market in Bulgaria begins to build up momentum, property experts within the country have predicted a sharp increase in property prices in 2006.

According to the Sophia News Agency, sales prices in prime residential areas in the last six months have been somewhere in the region of €820 to €1,650 per square metre and investors from Europe and further afield are beginning to take advantage of the potential for considerable capital gains.

Demand in Bulgaria is currently high for both commercial property and residential property and EU accession in the next couple of years will only add impetus to the already healthy market.

With the UK set to complete parliamentary procedure on the ratification of the accession treaties for both Bulgaria and Romania in the next few weeks, it is looking as if both countries will be ready to enter the EU sooner rather than later.

Atanas Garov, managing director at Colliers International Bulgaria, has told the Sophia News Agency that the number of foreign investors is now crucial to the growth of the market. He revealed that new companies looking for more space and residents moving to Bulgaria would both have "a positive effect on the property values and prices".

Mr Garov conceded that residential property investment had attracted most interest in 2005 with construction permits issued for around one million square metres of residential buildings during the year. He also highlighted a distinct split in demand, with portfolio investors buying properties in resort areas and locals tending to snap up the property in Sofia.

As Bulgaria begins to strengthen its reputation within the European community, business links will also be boosted, with many expecting Sofia to develop into one of Europe's key commercial centres. The knock-on effect in terms of demand for office property is perhaps inevitable and Mr Garov has seen signs of the office market improving already.

"The office market has been stable for more that two years in terms of prices, while demand has been growing faster than supply. This has resulted in much lower vacancy rates at the end of 2005," he observed.

"The overall vacancy rate for Class A and Class B offices in Sofia has fallen in the second half of 2005. Mirroring higher demand for quality premises throughout the second half of 2005, the overall Class A vacancy rate marks a decrease to 10.6 per cent. This gives very good prospects for developers in 2006."

Looking beyond the capital city, Mr Garov has picked out Varna as a city to watch, with a thriving social scene and burgeoning commercial reputation.

As is inevitably the case in emerging property markets, cautiousness and forethought are advisable when purchasing property in Bulgaria as some areas develop much more rapidly than others. Nonetheless, with properties around ski resorts proving popular and both Sofia and the Black Sea regions also attracting investment, it is certainly one of the most significant and attractive emerging markets in Europe.


Bulgarian Investment Property