Bulgaria ski resorts are now competing directly with resorts in Austria and France as British investors look for the next property hotspot. There has been a 40% rise in enquiries for investment property in Bulgaria over the last twelve months. Property buyers are hoping to get in now while property and apartments in Bulgaria remain cheap compared similar products elsewhere. Ski resorts such as Bansko offer cheap ski property in Bulgaria and positive investment returns, according to property investment specialist. Many investors are buying off plan at price as low as 35,000 euros for a fully furnished apartment in a luxury complex.
There was a 30% increase in British tourists to Bulgaria in 2005 and low cost airlines are increasing flights to the capital Sofia and Burgas on the coast. Several companies are targeting these new tourists and offering rental yields up to 9% guaranteed. Of course you need to weight up the risks involved in Bulgarian real estate. The property market in Bulgaria is still relatively new and not as regulated as more established locations. Property re-sales have yet to be tested as the market is very new.
As with all emerging markets property investors have to balance the risks of investing in a developing market with high returns and yields versus the more stable returns offered in an established location such as Spain. With Bulgaria’s membership of the EU looking likely very soon, many investors think that now is the time to invest in Bulgarian property. Prices of Bulgarian properties are predicted to increase between 15-20% in 2006 alone.
As well as its plan for EU membership, Bulgaria is improving its infrastructure, which will help to increase FDI and drive up Bulgarian property prices. Current prices for Bulgarian properties can be as low as 15,000 euros which makes it very affordable for UK investors. A standard 2 bedroom apartment in a Spanish coastal development will cost at least 100,000 euros whereas Bulgaria apartments in the Black sea coastal resort of Sunny Beach can be purchased for just 35,000 euros. Similarly a ski apartment in Bulgaria’s top ski resort of Borovets costs just 25% of the price of a similar apartment in an Alpine resort. With a season that lasts from December to April and the option for walking and hiking in the summer the rental return on a ski apartment is expected to be better than coastal apartments.
It is not all about hard noised investment either. Many older Brits are purchasing properties in Bulgarian villages and plan to retire there. The climate is much warmer and the cost of living just a fraction of the UK. Whatever you reason for purchasing Bulgarian property it is recommended that you deal with a reputable English speaking estate agent who can guide you through the various pitfalls