A Guide to Bulgaria Property Investment
With breathtaking mountains and valleys, a generous amount of Black Sea coastline and already established winter and summer tourism appeal, Bulgaria is a favourite destination for holidaymakers from all over the world. Its warm and friendly people, unique tourist attractions and beautiful ski resorts combine to make the country.
Bulgaria’s strong property market, stable government and growing tourism industry make the country quite attractive to investors as well. At Nubricks.com the following 10 reasons are often cited as being those bolstering investors’ confidence in the nation’s property investment marketplace currently :-
1) Bulgaria’s Stable Government Inspires Investor Confidence in the Country’s Ability to Maintain Growth
Although Bulgaria floundered for a bit following the collapse of communism in the late 1980s, it has since emerged with a strong parliamentary republican form of government. Stability in the country has been bolstered by Bulgaria’s recent inclusion in a host of international organisations, such as the World Trade Organisation, the Council of Europe and the European Union itself. Investors who prefer stable political climates are very much finding Bulgaria to their liking at present.
2) Recent European Union Entry has Helping Bulgaria’s Star Rise on the Worldwide Real Estate Investor Front
Bulgaria’s accession into the European Union has made it very interesting for investors. With the acceptance comes hope for further economic reforms and better programmes designed to encourage foreign investment. EU acceptance itself shows that Bulgaria is supported by other countries in the region in its efforts to grow as a democratic society. Many believe Bulgaria will soon streamline its real estate buying process to fall in line with other EU countries. As it stands right now, buying here is a tad tricky in some cases, but savvy investors have learned the ropes of doing so. The EU entry bodes very well for investors who want to place their money in countries that seek to improve politically and economically.
3) Bulgaria’s Growing Economy is a Source of Inspiration for Property Investors
Bulgaria’s economy isn’t the fastest growing by any means, but it is holding its own. This is especially so since the country gained EU entry in 2007. The GDP is at EUR 25.1 billion and the annual growth rate is an estimated 6.1 percent. Whilst inflation is a little high at 9.1%, the overall unemployment rate is dropping quite nicely. The country’s economy is fuelled by metalworking, tourism, construction and chemicals. Investors who desire stable and growing markets are finding Bulgaria is attractive for at least the medium term, especially since its EU accession.
4) The Growth of the Bulgarian Property Market Makes it Attractive for Investors Seeking Strong Returns
Whilst Bulgaria’s property market is maturing, investors find there is still a lot of potential to be had. Double-digit growth still continues in some regions, and rental yields remain high. New construction has started to slow a tad, but prospects remain quite high in areas that cater to year-round tourism, such as the mountainous regions and the main cities. As the demands of the market begin to change, developers are stepping forward to meet them. From ski resorts to suburban complexes, Bulgaria’s property market remains quite favourable and offering broad and diverse appeal. With buy-in prices still below GBP 30,000 in some areas, Bulgarian property investment is very attractive for a variety of different kinds of buyer.
5) Bulgaria’s Westernisation is Making it Attractive to Holidaymakers, Retirees and Expats Providing an Investor with Strong Demand to Target
As Bulgaria continues to develop it is retaining its eastern flair but picking up a distinctly western flavour as well. With a growing expat community, the creation of suburban communities and even the development of “big box” retail, atmosphere is becoming more inviting for expats and holidaymakers. This is good news for investors who are looking for buy-to-let and resale potential.
6) Easy Access to Bulgaria Makes Investment Appealing for Many Reasons
Bulgaria is very easy to access from just about anywhere in Europe. Brits enjoy low-cost, direct flights from most major airports. Total travel time tends to fall in at less than three hours. This is very good news for holidaymakers and also investors who want to cater to them. It can also inspire confidence among investors who like to personally inspect properties on a regular basis. Travel within the country is also considered quite good and is improving at a steady pace along with overall infrastructure development.
7) Bulgaria’s Bustling Tourism Industry Inspires Investor Confidence in the Region
Bulgaria’s stock on the worldwide travel scene is climbing higher. As holidaymakers discover the beauty of the country’s mountains and the draws of the Black Sea, demands are growing. The World Travel & Tourism Council estimates Bulgaria’s tourism pull will increase by 4.6% per annum through to 2017. With easier access into the country now available, investors are finding buy-to-let properties are very worth their while, as are resale properties that cater to holidaymakers. With rental yields exceeding 12% in some cases, Bulgaria is very attractive not only for holidaymakers but also for the investors who want to cater to them.
8) Favourable Exchange Rates, Low Cost of Living Attract Foreign Investors
Bulgaria’s present exchange rate with the British pound is very attractive for buyers from the UK. A single lev equals about 2.7 pounds. Whilst this isn’t the most favourable exchange rate in the world, when this is coupled with the low cost of living Bulgarians enjoy and the cheaper property prices, British money tends to spend very well in Bulgaria. When a big return on an investment is desired and an eastern cost of living is too, many investors are choosing Bulgaria. These two factors are good not only for property purchases, but also for expats and holidaymakers - which opens the door for several different investment strategies.
9) Bulgaria’s Diversity of Geography and Climate Make it Quite Attractive to Holidaymakers and Investors
Bulgaria’s 110,000 square kilometres of land encompasses a landscape that tends to delight holidaymakers, expats and investors alike. The country’s extensive Black Sea coastline is very attractive with holidaymakers, its mountainous regions especially near Bansko are also a favourite. Investors are finding the mountainous areas present them with year-round buy-to-let potential, as do the major cities and towns such as Sofia. Coastal communities such as Sunny Beach tend to attract within season, and the season is well extended thanks to the climate. The majority of Bulgaria enjoys a moderate continental climate, but the southern regions along the Black Sea appreciate Mediterranean-type weather. The diversity of both geography and climate makes Bulgaria a hit with holidaymakers desiring a variety and it bodes very well for investors with a multitude of strategies in mind.
10) Bulgaria’s Friendly People and Growing Expat Community Make it Very Welcoming
Bulgaria’s friendly people and welcoming attitude toward holidaymakers and expats make this country very attractive for investors. As the country’s expat community continues to grow, the climate for investing does as well. Holidaymakers, retirees and working-age expats are all finding Bulgaria to their liking. This is extremely good news for investors looking at buy-to-let potential and even resale and second home prospects.
With its unique history, welcoming people and affordable prices, Bulgaria has been and remains an interesting destination for property investors. As the tourism industry continues to develop, this market is expected to more than hold its own in the coming years.
