Why invest in Bulgaria?
• Bulgarian property prices are currently some of the cheapest in Europe
• Bulgaria is scheduled to join the European Union in 2007
• The Black Sea airports are about three hours flight from Britain
• All major British tour operators will be on the Black Sea coast next year. Some, such as Thompson, for the first time
• The Black Sea coast boasts 220km of sandy beaches and enjoys more than 1700 hours of sunshine from May to October
• Last year property prices rose by more than 30% - and that BEFORE accession to the EU starts to make the country wealthier. Remember, Spain and Ireland were backwater with supplies of bargain basement property before the EU started pouring billions into their economies
• The country’s diverse climate means it has both ski and beach resorts
• The cost of living there is one of the lowest in Europe - with a pint of lager costing about 40p and a three-course meal, with wine, priced at no more than £5 a head
• Bulgaria has recently joined NATO
• Its currency is stable and linked to the Euro
Supply in Bulgaria
Supply on the high-end market continued to increase during the first half of 2004. New space emerged both as residential apartment buildings and as compound
developments. Prestigious residential areas close to downtown Sofia traditionally display a lack of free land lots suitable for construction. Yet, supply of new residential space
continues to increase in the Lozenets and Iztok neighbourhoods in Sofia.
Compound type developments are situated in more suburban areas. These locations allow for construction of additional amenities such as community and
fitness centres, swimming pools as well as sufficient parking space. A recent trend on the market is that developers start to offer the new apartments
fully furnished with kitchen and bathroom equipment.
Demand in Bulgaria
Demand for premium residential properties continued to be high during the first half of 2004. Investment purchases of single apartments in prestigious locations remain stable among expatriates and Bulgarian’s. Newly built properties have become the preferred product compared with the usual purchase of renovated, older apartments. The first half of 2004 saw an
increase in the number of residential developments sold off-plan, but expected to be delivered on the market within six to twelve month’s time. Mortgage-financed purchases also gained momentum during the period. As a whole, the number of transactions has increased during the first six months of 2004, compared to the same period last year.
Two and three bedroom apartments still register the highest demand. Compound or “planned community” developments continue to attract strong interests as they offer a completely new concept in living environment. Residents and buyers are increasingly becoming savvier looking for benefits of extra services such as community and sports facilities within the compound as well as professional security and property management.