Bulgaria is situated in Southeast Europe and occupies the eastern part of the Balkan Peninsula. To the north, it borders on Romania, to the west on the
Republic of Macedonia and the Federal Republic of Yugoslavia, to the east on the Black Sea, to the south on Greece and to the southeast on Turkey’s European
part.
Occupying an area of 110,000 sq.km with a population of 8.4 million, Bulgaria’s topology is extremely varied from large plains and lowlands, low and high
mountains to valleys and lovely gorges. With so much beauty on such a tiny land, the sights and sounds are breathtaking - curious rock formations and mysterious
caves; sunny seashores with golden sands, quiet coves and romantic capes;majestic mountains with fiery peaks, mirror lakes and shady woods full of scent.
The climate is temperate continental with clearly marked four seasons. A Mediterranean influence is felt in the country’s southern regions with the average
annual temperature around 10.5°C. 0°C is the average for January, whilst the maximum you can expect in summer is around 30°C. With a time difference of
only 2 hours, Bulgaria is one country that feels close to home.
A report published recently by The Bollin Partnership shows that significant numbers of Britons are now investing in property in Bulgaria. The report links the
demand to an expansion in tourism, and says that low-cost airlines have also increased interest. British tourist numbers are predicted to have doubled in two
years to 250,000 visitors in 2004 thanks to the influx of main European tour operators now operating in Bulgaria.
It’s only in the last two years that people in Bulgaria have been able to take out a mortgage and buy a home. This has, of course, unlocked a property boom. And
with EU membership for Bulgaria less than three years away, eyes are on Bulgaria in anticipation of an economic transformation.
Highlights
• The increasing number of – and lower interest rates for – mortgage loans continues to stimulate the residential market despite the IMF’s new
requirement for banks to restrict credit growth.
• Market forces started to override the appreciation trend on the residential segment. After the hectic upward movement through 2003, sale prices
increased only at a moderate rate during first half of 2004. Rental rates are stable and are expected to grow for exclusive properties.
• Investment purchases are on the rise with yields from residential properties in Bulgaria exceeding the average returns in the EU and other
CEE countries.
• Yields remain in the range of 8% to 12% for single deals of residential properties.
• Large development projects aim to achieve over 15% return on investment.