The Savvy Investor's Guide

Buying home in Bulgaria

Bulgaria has attracted a great deal of attention over the last 2 years, as foreign purchasers and financiers flock to its emerging home market. In 2004, foreigners invested over Euro 500 million in Bulgarian property, compared to Euro 98 million in 2003. Regularly listed in the top 20 locations to buy a foreign property, Bulgaria is now firmly on the residential or commercial property investment map.

With EU entry projection for 2007 financiers are keen to buy into the Bulgarian market to reap the unavoidable benefits of capital appreciation and establish a rental earnings in a nation that has demonstrated increasing tourism over the last few years. In the very first 6 months of 2005 alone, over 2.7 million tourists checked out Bulgaria; with a 42% boost in the variety of British tourists. By 2020 the World Trade Organisation has predicted that the number of foreign tourists checking out the country will increase to 10 million.

The most popular areas for foreign property financiers can be broadly categorised into 3 sectors: the Black Sea Coast, Sofia and the mountain ski-resorts. Other purchasers are brought in by the old houses inland that can start from just ₤ 1,700 and the medieval charm of stunning cities and villages like Veliko Turnovo, Arbanassi and Tryavna in main Bulgaria.
Enjoying over 300 days of sunlight a year, boasting a coastline that extends over 380km, magnificent mountains, eco-tourism and a few of the most affordable residential or commercial property in Europe, there is no surprise that Bulgaria is bring in such interest. Property prices in some regions have actually doubled in the space of the last 2 years alone– though new houses on the coast are still offered from as little as ₤ 20,000.

Despite recent bad press about designers and estate representatives in Bulgaria exaggerating and over-estimating rental returns capital development rates, Bulgarian property remains under-valued and is a good financial investment.