Despite some negative news articles saying that the Bulgarian real estate market is not so appealing to foreign investors any more, Andrew Regan, a Scottish journalist, states that the Bulgarian real estate boom does not seem to be easing at all. Bulgaria plans to join the Euro zone in 2011 is leading to a rush of investors trying to buy cheap Bulgarian properties now before the prices rise when they join the euro zone. Local Bulgarian real estate agents are also suggesting there will be more demand for Bulgarian property when Bulgaria joins the Euro in 2011
Buyers are particularly interested in Bulgarian real estate, as a lot of EU money is currently being spent on modernising the country’s infrastructure. Bulgaria has completed a lot of legal reforms in order to join the EU and has also being focusing on economic factor to help grow the local economy. Bulgarian GDP growth was the highest in Eastern Europe over the last 2 years. This improvement in the economy has in turn lead to rising land prices which have increased from 15 euros per m2 to 200 euros per m2 in certain areas. Investors from UK, Ireland and more recently Russian have been buying Bulgarian property in the hope of achieving high returns compared to more traditional locations such as France and Spain.
Property prices are now so high in the UK and many first time buyers cannot afford to buy property in the UK. Instead they are turning to places like Bulgaria to try to get on the property ladder. A Bulgarian property can still be purchased for as little as 15,000 euros. With improving flight connections and a growing economy experts advise that buying Bulgarian properties in good locations is a good source of future profits. However you must be careful not to purchase in areas that have been overdeveloped.