Bulgarian properties have seen a meteoric rise over the last few years – fact! A decade ago, the country was seen as a poor, eastern block state riddled with crime and corruption but both international and home-grown developers soon realised its potential, and, thanks to huge investment, Bulgarian properties are now one of the world’s top property investments. Many claim the time of quick high returns has passed, but Bulgaria property still has a lot to offer investors who are prepared to take a slightly longer term view.
There’s no doubt that the success of any country is built on its economy; from tourism to direct foreign investment to employment. Since 1996, Bulgaria has enjoyed economic stability and strong growth, thanks to sound monetary reforms, responsible fiscal planning and a fixed exchange rate against the Euro – all of which has fuelled the Bulgaria property market.
Low inflation and steady progress on the country’s infrastructure has also improved its attraction for the international business community with several major blue chip conglomerates opening offices in the country, including; Coca Cola, Intel, Nestle, Citibank and Siemens.
According to the respected CIA Factbook, Bulgaria’s GDP has also seen a 6.5% rise which has meant salaries have risen from an average of EUR4,000 to EUR14,000 per year in the last 3 years alone. The accession to the EU on January 1st 2007 has also been a major milestone, thanks to easier trade links and the EUR4.6 billion which has now been earmarked for Bulgaria between 2007 and 2009.
All of these economic factors are great news for investors, as the country is seeing a sharp year on year increase in the numbers of tourists visiting. According to Amberlambs, an independent online publication featuring expert overseas property investment research, Bulgaria’s tourism sector is growing by up to 22% annually and that double digit capital growth is forecast for Bulgarian properties over the medium term.
Bulgaria property also features highly in a number of leading international league tables with Knight Frank placing Bulgaria property in equal fifth place in terms of house price growth potential for 2007 for Europe, whilst the Daily Telegraph rated it 8/10 as an investment option.
Overall, it seems Bulgaria’s property market is likely to prove profitable for many years to come.
Source: Emerging Real Estate