Bulgaria enters the Top 10 in foreign investments claims an EIU report. Bulgaria is now amid the Top 10 countries for new investment projects, financed by foreign capital during the 2006. In 2006, the number of projects that was accomplished in Bulgaria increased by more then 104% to a total of 286, while the number of realized projects for 2005 was barely 140. All this says that on worldwide scale, Bulgaria holds 2.42 % of all projects implemented in 2006. Standing in the lead of Bulgaria are countries like Poland, Romania, Russia, Germany, etc., but the first place is for China, where foreign investors have funded 1378 new projects during the same year.
Sofia - a Cheap Capital City for Investments
There are many investors who want to buy some property in a big European city. Well, many specialists in the field would say they should look for something the Sofia, the capital of Bulgaria.
Some researches show that Sofia is in fact the cheapest capital in Europe, so there should be some really profitable bargains for real-estates there.
According to some sources, the properties in Luxembourg, for example, have average price of ˆ485,000, the ones in Sofia are significantly lower – around ˆ78,000. The market in the capital is also pretty active as most of the people prefer to buy their own home and not rent it. According to the specialists, the fact that the people in Bulgaria would like to own their houses or flats really boosts the property market in the capital.
Eastern Europe becomes more and more popular as a tourist destination with every year and Bulgaria will surely become highly profitable for foreign property investors.
Bulgaria more and more popular year-round destination
Bulgaria continues to gain popularity as a year-round travel destination for consumers, according to the experts. Investment specialists states that the eastern European country of Bulgaria offers great variety of attractions and activities to both winter and summer tourist, meaning that rental accommodation, as well as residential properties are in continuous demand.
Therefore, the overseas real estate investors, which continuously increase, consider the Bulgarian travel and property markets as a viable investment potentiality, as they could get much higher than an average rental income, compared with the consistently popular markets.
Furthermore, there is a great demand for accommodation in the most popular mountain resorts such as Bansko, Pamporovo and Borovets, as they are lifestyle destinations for the entire year. This comes due to the fact that Bulgaria is not only famous with its Black Sea resorts, but one of the most popular countries for winter sport lovers as well.
Balkan Property Exhibition (BALPEX) 5 - 7 October Sofia
The Balkan Property Exhibition will be held again from October 5th to 7th in the Inter Expo & Congress Center (147 Tzarigradsko chaussee blvd., Sofia, Bulgaria), which general focus will be residential and holiday real estates as well as business projects from Bulgaria and the region.
Balkan Property Exhibition (BALPEX) offers an excellent platform for promoting the latest products and services in the property industry - sales or rental of houses and summer villas, apartments and residential complexes, hotels and such complexes; business real estates - offices and commercial properties, agricultural land plots; financial, planning and design services, as well as property management, consultancy, business development and brokerage. Visitors will include agents and brokers, architects, engineers and planners, consultants, corporate property managers, various investors, property managers, property industry suppliers and specialists, etc. The main exhibitors will include property developers and consultants, architects and designers, major contractors, project management companies, various banks and financial Institutions.
Holiday complexes on the Bulgarian Black Sea coast still very attractive for investors
Investors' interest in vacation complexes on the Bulgarian Black Sea have increased from 3 to 5 times till now this year, compared to 2006, claim property specialists.
The coastal property prices along the southern Black Sea increased with around 18 % on annual basis, notwithstanding the prognosis that many foreign investors withdrawing.
However, the holiday real estates in the ski resorts are still the most expensive in Bulgaria. In the winter resorts of Pamporovo and Bansko prices are as high as Euro 1200 - 1300 per square meter, while in the summer beach resorts property is sold at around Euro 1000 euro per square meter.
This difference in the real estate prices is explained with the more expensive construction in the mountain resorts. Additionally, the holiday properties there are more luxurious.
The property investors in Bulgaria should be careful about their investments - they would have to select the plot, determine their client target group, as well as be flexible and able to change the developments for various buyers’ target groups.
Around 40000 British citizens own real estate in Bulgaria
There are nearly 40000 UK citizens currently owning real estates in Bulgaria and the demand is still high enough to lead to a steady price growth.
British medias claim that Bulgaria is one of the most attractive destinations for property buyers and real estate investments, a destination where one could own flats for 34 000 Euro. However, brokers warn that buyers should no longer expect such quick and easy returns of their capital and look to the long-term investments.
It is now more and more difficult in the United Kingdom to gain good profit from rental properties - interest rates in England increased five times from 4,5% to 5,75%, while rental prices grew insufficiently. This is and the main reason for Britons to invest in Eastern Europe and particularly in new European Union members.
Pamporovo highlighted as investment prospect
The popular ski resort of Pamporovo is a great place to invest in real estate has been claimed. As one of the most famous winter resorts in the country, the area of Pamporovo boasts impressive scenic views, sizeable properties and “great value for money”, according to international real estate investment specialists.
A significant advantage of the region is the fact that it will be only ninety minutes away from the Mediterranean Sea once the new road is finished.
However, there are some other destinations with huge property investment potential such as the already popular Bansko, but also Varna, Lovech and Veliko Tarnovo.
Overall, the Bulgarian property market has been boosted once again in recent months after country’s accession to the EU on January 1st 2007.
New constructions boost the real estate market in Bulgaria.
The repeatedly growing provision of new construction and the low panel property boosted great activity on the Bulgarian real estate market in the first months of ‘07. House sales in small towns and villages near the main cities also affected market dynamics. Many property owners announce their offers after keeping their real estates until Bulgaria joined the EU. Now the new prices are form twenty to thirty per cent higher.
Despite the sizable price increase of panel properties, many owners in the small towns still wait for further market development and higher price for their offers.
New construction significantly attracts most of the buyers in the resorts of Bansko and Razlog, in which the main purpose of real estate contracts is investment.
Properties in the surroundings of the town feature among the most active segments of the property market in Veliko Turnovo.
There are and many people who want to rent rural houses in good condition for long-term periods, where most of the renters are foreigners wishing to renovate the property before moving in.
BalPEx started as the first property exhibition for the Balkan region.
The Balkan Property Exhibition was held for the first time from May 18th to 20th in the Inter Expo Center - Sofia. Around two hundred top real estate executives attended the conference held in parallel, which main focus was on the investment real estate markets of Bulgaria and Romania after their EU accession this year.
The mission of BalPEx is to offer the customers an unique opportunity of a direct access to the supply from Bulgaria, Romania and the entire region, as well as to continue the information exchange, offers and services with regional partners. Additionally, BalPEx aims to focus the investors’ interest on an event which provides the most accurate market picture and the basic factors behind its development.
The next Balkan Property Exhibition will take place again at Inter Expo Center (147 Tzarigradsko chaussee blvd., Sofia, Bulgaria) on 5-7 October, 2007, which general focus will be residential and holiday real estates as well as business projects from Bulgaria and the region.
Property prices are rising due to a new road fee.
The prices of flats and offices will probably rises due to the newly introduced road fee – the developers will have to make easily accessible roads to the buildings they offer which will most probably encourage them to include these new costs in the price of the construction. The Chief Architect Peter Dikov said that the investors will have to build the infrastructure around the building, namely the roads, water and sewerage systems. He said that in an official conference on the topic of real estates in Bulgaria, Romania and Serbia.
Up until now the roads and sewerage systems around the constructions were made by the municipalities and that is why many of the recently built constructions don’t have decent infrastructure for a long time which does not at all attract foreign buyers. Dikov also said that he expects a rise in the prices of construction permits, too.
The prices of flats in Bulgaria have suddenly increased with around 10% in the past 4 months, while the increase for the entire 2006 was 20%. It is also curious that one third of the buyers and investors in real estates in Bulgaria are not from this country. They, just like lots of Bulgarians, prefer modern housing complexes. Realtors have also mentioned that the price of land is also increasing.