A Guide to Eastern European Property Investment

Photo courtesy of Moty@BG 

From the beautiful Black and Adriatic sea beaches to the breathtaking mountains of Romania and Bulgaria, Eastern Europe is becoming a favourite playground for holidaymakers, expats and retirees from around the world.  As interest in this region rises, the investment potential is increasing as well.

Eastern Europe’s growing economies, relatively stable governments and ever-expanding tourism markets are combining to inspire investor confidence.  We at Nubricks.com cite the following 10 reasons as factors boosting confidence in Eastern European property investment: -

1) Overall Regional Stability in Eastern Europe Lends itself to Boosting Investor Confidence

Whilst many of the countries within Eastern Europe enjoy fairly new representative forms of government, the regional stability is improving almost on a daily basis.  In areas such as Bulgaria, Poland and Romania stability is high.  The region’s overall interest in and cooperation with the international community is also helping to boost stability and investor confidence along with it.

2) High European Union Interest in Eastern Europe Tends to Inspire Expat, Holidaymaking and Investing Confidence

Many countries in Eastern Europe have already gained European Union entry and others are working hard towards it.  This in and of itself inspires investor confidence in the region.  The willingness of Eastern European people and governments to take part on the international scene is very encouraging for overall stability and growth potential.  As more countries join the EU, the ease of entry and travel is becoming much higher as well.  This pleases holidaymakers, expats and retirees and bodes well for property investors.

3) Growing Economies are Lending Themselves to Attracting Investors From all over the World

The economies throughout Eastern Europe are not all alike by any stretch of the imagination.  In some areas economic growth is practically booming, whilst others are working hard to make up for years of disparity.  Investors here will find a nice blend of stable and emerging economies, which gives rise to lots of potential.  Bulgaria for example, is considered quite sound, but in other areas the markets are just now growing.  In Slovakia for example, growth has not been fast, but the government is working closely with others to push forward improvement programmes and stabilise the economy for euro zone entry.  The diversity in Eastern Europe tends to intrigue investors who favour emerging markets, but some countries can deliver a reasonably sound measure of stability as well.

4) Increasing Tourism Figures for Eastern Europe Make Investing Here Attractive

Tourism throughout Eastern Europe is on the rise.  Whilst the figures are quite diverse depending on the country, each is experiencing a bit of a boom as Europeans flock to see sights that were once hard to access.  From the castles of Romania to the beaches of Bulgaria and beyond, the entire region’s holidaymaking outlook is on the rise.  In Croatia for example, the World Travel & Tourism Council estimates demand will grow by 7.8% per annum through to 2017.  This is very good news for investors looking at the holidaymaking market and buy-to-let potential.  It also rings the sound of potential for buyers looking at resale values as well.

5) Diversified Geography Makes Eastern Europe Very Pleasing to Holidaymakers, Retirees and Investors with Many Strategies for Investment Returns Possible

The geography and climates of Eastern Europe are incredibly diverse.  With countries that front the Baltic, Black and Adriatic seas, holidaymakers, investors and expats can find more than enough beachfront property to go around.  Add to this the beautiful mountain ranges, such as Romania’s Carpathians, and the incredible rolling hills and plains in areas like Hungary and the appeals of Eastern Europe become clear.  This region is home to everything from Mediterranean climates that remain balmy year-round, to very seasonal areas that are ripe for skiing and other winter fun.  Retirees, holidaymakers and other expats are very much finding the geography and climates of Eastern Europe to their liking, which of course appeals to investors!

6) Blend of Very Hot and Developing Real Estate Markets Enables Diversification in Strategy

Eastern Europe appeals to investors with all sorts of different strategies and acceptable risk thresholds.  Countries such as Bulgaria have proven themselves and provide a fairly safe locale for seeing returns.  In areas like Slovenia where a housing shortage exists, the risks might be higher but the rewards are incredibly attractive.  Investors with just about any kind of strategy in mind will likely find that at least one Eastern European country matches their tastes and offers the potential they are looking for.

7) Low Buy-In Prices and Reasonable Cost of Living Combine to Make Eastern Europe Very Appealing on Many Levels

Prices do vary depending on the country at hand and the particular geographical features and holidaymaking draws, but overall Eastern Europe offers some of the lowest buy-in prices in the world.  As the markets here continue to grow and develop, many believe the low prices will soon disappear.  In Albania for example, buying off-plan for well under GBP 30,000 is more than feasible.  Whilst the prices are different in more developed tourist areas like Bulgaria, the buy-in is still low in comparison to other investment hotspots in the world.  The relatively low prices and incredible potential for growth are working together to attract investors.

8) Favourable Exchange Rates and Impending Euro Zone Status for Some Countries Appeal to Investors

Whilst the exchange rates do vary from country to country, overall Eastern Europe offers a very good spending climate for British money.  The exchange rate between the pound and the Hungarian forint, for example, is one pound to 360 forints.  In some regions, parity of currency is on the horizon.  Slovakia for example, is working to join the euro zone.  The exchange rates, combined with potential euro adoption, inspire investor confidence by appealing to a variety of different kinds of buyers.  In areas where the economy is building and exchange rates are high in favour of Brits, money goes very far.  In areas where euro introduction is pending, assurances of stability inspire confidence.

9) Rapidly Improving Infrastructure and Access Appeals to Retirees, Expats and Investors

Countries throughout Eastern Europe are working very hard to improve their standards of living, infrastructure and overall accessibility to the rest of Europe and the entire world.  As new roads go in and airports get much-needed overhauls, investor confidence is rising quickly in regard to many Eastern European countries.  In places such as Bulgaria and the Czech Republic, much work has already been done.  Others locales are just now benefiting from strong efforts to reach out to the international community and the EU.  As standards increase, many retirees, expats and holidaymakers are making Eastern Europe their destination.  This bodes well for investors who want to cater to the holidaymaking market or get in early in regions that show signs of great potential.

10) Friendly People Make Holidaymakers, Investors and Expats Feel at Home, Inspiring Investor Confidence

From Bulgaria and Romania to Slovakia, Eastern European people are fast gaining a reputation for being very hospitable to holidaymakers, retirees, expats and investors alike.  Whilst there are some language barrier issues in many Eastern European countries, expats and holidaymakers are reporting rather warm welcomes.  This makes investing in the growing real estate and holidaymaking markets very attractive for buyers and bodes well for the continued development of travel between Western and Eastern Europe.

From the Adriatic, Black and Baltic seas to the landlocked regions of Hungary and Slovakia, Eastern Europe is making a big splash on the holidaymaking and investment scene.  As these once often-inaccessible countries open their doors for visitors, investors, retirees and holidaymakers are discovering a world of possibility awaits them.