The first investments in Bulgarian property were long before the country even thought about joining the European union. Now that EU accession is on the way next year does that mean and Bulgarian properties are no longer good investments. Not so say leading investment brokers. In fact in their opinion the advantages brought about by joining the EU are only starting to be felt in the Bulgaria property market.
The early speculators are gone but now they are replaced by more experienced and long term buyers. Property in Bulgaria is now considered a safe investment for the medium to long term with excellent capital appreciation and rental yields. Of course the market boomed in the run up to EU membership but there are still plenty of opportunities for the careful buyer who does their homework.
Fof course it is not possible to profit from all Bulgarian property purchases. One must be careful and not get caught up in all the hype surrounding the market at the moment. The smart investors are focusing on apartments in Sofia, ski resort properties and commercial properties in the main cities. Investment experts strongly advise to steer clear of over developed areas along the Black sea coast and they are also critical of purchasing old Bulgarian houses in villages and towns in the middle of nowhere. These types of older properties will require substantial renovation and the costs are often as much as if you started from scratch the constructed a new house. Also while house in local village might appear romantic and cheap just now it can be very difficult to live long term in such houses. They are also not popular with the local market which is always a worrying sign.
There is strong and increasing demand for Bulgarian properties in the right locations. Pick modern properties with building guarantees and located close to the main tourist locations or the major cities. Cities like Sofa, Varna and Plovdiv are the top recommendation for investors looking to purchase city or commercial properties. Bansko and Borovets are the top picks for ski resorts although in the Bansko area prices seem to by rocketing to unsustainable levels. Be careful that you choose a quality development in a good location and backed by a reliable development company. Along the Black Sea coast Sveti Vlas and Lozenets are favourites although these areas are also beginning to get overdeveloped so caution must be used when purchasing.
However prices remain low when compared with more developed markets like Spain and Portugal so the potential for strong return is present. Just take care and do your research before you buy !!!