Bulgaria is Still a Sound Investment in 2007
Bulgaria is Still a Sound Investment in 2007 << Back to list of articles
Views and Records
Source: Emerging Real Estate
Bulgaria's property scene has been subject to a meteoric rise over the last few years - fact! A decade ago, the country was seen as a poor, eastern block state riddled with crime and corruption but both international and home-grown developers soon realised its potential, and, thanks to massive investment, Bulgaria is now one of the world's top property hot spots. Many claim the time of quick high returns has passed, but Bulgaria still has a lot to offer investors who are prepared to take a slightly longer term view.
There's no doubt that the success of any country is built on its economy; from tourism to direct foreign investment to employment. Since the fall of the socialist government in 1996, Bulgaria has enjoyed economic stability and strong growth, thanks to sound monetary reforms, responsible fiscal planning and a fixed exchange rate against the Euro - all of which has fuelled the property market. Low inflation and steady progress on the country's infrastructure has also improved its attraction for the international business community with several major blue chip conglomerates opening offices in the country, including; Coca Cola, Intel, Nestle, Citibank and Siemens.
According to the respected CIA Factbook, Bulgaria's GDP has also seen a 6.5% rise which has meant salaries have risen from an average of EUR4,000 to EUR14,000 per year in the last 3 years alone. The accession to the EU on January 1st 2007 has also been a major milestone, thanks to easier trade links and the EUR4.6 billion which has now been earmarked for Bulgaria between 2007 and 2009.
All of these economic factors are great news for investors, as the country is seeing a sharp year on year increase in the numbers of tourists visiting. According to Amberlambs, an independent online publication featuring expert overseas property investment research, Bulgaria's tourism sector is growing by up to 22% annually and that double digit capital growth is forecast by leading property analysts for the medium term.
Bulgaria also features highly in a number of leading international league tables with Knight Frank placing Bulgaria in equal fifth place in terms of house price growth potential for 2007 for Europe, whilst the Daily Telegraph rated it 8/10 as an investment option. The online travel company 'Opodo' is also predicting that Bulgaria will be the most popular emerging holiday destination for 2007. They report that bookings to the country have risen by 40% in the last six months and they expect a significant further increase.
Whether you're looking for an investment overlooking a golden beach on the Black Sea Coast, a slick city apartment in Sofia or a mountain retreat in the world class skiing resort of Bansko, Bulgaria has it all - as Pelle Langli explained; 'Bulgaria is simply stunning and has something for everyone, from azure seas to souring peaks. The country is in a unique position as it has enjoyed immense growth in a short period of time. However, if you are willing to take a mid to long term view, of say 5 to 10 years, then the prospects of making a healthy return on your investment look sound.'
All in all, it seems Bulgaria's accessible property market is likely to prove profitable for many years to come.