Bulgarian Properties

Bulgarian Property Market - Investors Information The Bulgarian economy is growing with fast rates since the beginning of 2000, and up to now the property prices have increased 2 to 3 times, while usually, a property value can double within the timeframe of 9-10 years. In September 2002 a sales index for real estates on the Bulgarian market (REMI) was introduced, making Bulgaria the first country in the Central and Eastern Europe to introduce such national index for real estate sector. This index is considered to be a solid indicator of property investment activity and development in the country. There are several main factors that contribute to the advance of the Bulgarian real estate market, which include the stable political situation, the improvement of the infrastructure, the increasing popularity of the sea and ski resorts, the low cost of living and the influx of foreign investment. Also, the real estate related services and bank services, including mortgages conditions, are constantly improving in order to meet the high criteria of the EU countries. Generally, the demand for properties in Bulgaria is high and stimulates the construction of new residential complexes and commercial buildings.
Bulgarian Market Analysis and ForecastReal estate is constantly picking up in Bulgaria, with prices growing far more dramatically than expected as foreign investors pour in. Thanks to the EU accession of the country, low prices and a swathe of ongoing new developments on the coast and in leading ski resorts, the odds were always high that Bulgaria's long-neglected property sector would pick up. For example, it has taken off faster and more dramatically than anybody anticipated, thanks to the ever-acquisitive British and Irish investors, which are leading the way, and estate agents targeting foreign buyers springing up even in smaller towns and cities. The developers are planning more shopping malls in and outside leading Bulgarian cities, and with demand for quality office space high, commercial property is starting to look a good bet. All this, together with the EU promising to pump some 6,6 billion euro into Bulgarian infrastructure over the next five years, investing in the Bulgaria's cities and resorts are going to start looking rather smarter.
Bulgarian Real Estate Sector InformationThe Bulgarian property by Western European standards is very cheap, and since Bulgaria has so much to offer, it is not surprising it is quickly getting more popular as an alternative country for property investment from the traditional European destinations. Some shrewd investors who bought in Bulgaria two years ago have seen the value of their property increase dramatically, but still, there is much potential, peak real estate deals at the sea side. During the last years demand was higher than supply, because of the increased supply of mortgage loans, and to the consistent migration of workforce from inside the country to sea resorts and big coastal urban centers like Varna and Bourgas where more jobs are available. According to National Statistic Institute of Bulgaria, the quarterly real estate prices growth rate is 12,5%, and yet, Sofia is the most expensive real estate market with 2,8% increase followed by the towns of Varna (23,7%), and Bourgas (16,8%).
Information For Investors - Bulgaria Business ClimateThanks to the stable economy as well to the drive for a fast and smooth process leading to EU membership brought about an upsurge in Bulgarian economy as well as a better investment rating for the country, making the macro-economical indexes very stable, which are as follows:- Five year average GDP growth of 4,9%- Budget surplus, low inflation, currency peg to EUR- 80% private economy- The stock market has tripled in the last two yearsAlso during the last years, Bulgaria had made great progress in creating a non-discriminatory regime of national treatment for foreigners performing economic activities. In the fall of 2003, the Parliament has approved changes to the Foreign Investment Act, which aimed at treating domestic and foreign investors on an equal footing and reducing the time spent on administrative issues, so as you see Bulgaria is a country, which has a lot of potential and with determined effort could overcome obstacles to an improved business environment.
Bulgarian Property Investment FundsRecently, there has been a very significant increase in the level of indirect investment in real estate sector in Bulgaria. The investors are mostly represented by limited partnerships, as well as offshore unit trusts, but the traditional base of property investors in these vehicles has expanded. Now they include not only institutions and life companies, but also private equity, high net worth and non-resident investors. By investing in property through a managed fund, the risk of loss is reduced through the fund's ability to diversify across a range of different property sectors, such as commercial, office, industrial, hotel and retail, and also the advantages of investing in property fund include:- Strong capital growth- Regular income- Reduced risk through diversification where the fund invests across different property sectorsThe number of property funds is increasing constantly, causing a bit of a stir in the Bulgarian property market. Most of these products are global property funds, a relatively new asset class for local investors, which mainly invest in Real Estate Investment Trusts, which are securities that sell like a stock on the major exchanges and invest in real estate directly, either through properties or mortgages.
Bulgarian Property Rental FieldsIn Bulgaria the rent reimbursement from properties is exceptionally attractive, since it is close to 12%, making the annual reimbursement from real estate investment almost 5 times higher than in the United Kingdom. The increased demand for properties is the biggest reason for the rise of the rents, and according to the last official statistics, Bulgarian properties, both residential and commercial, bring 10-13% annual reimbursement from rent, depending on the characteristics and the location of the immovable. These numbers place Bulgaria in the lead in the whole of Central and Eastern Europe with regard to reimbursement coming from rent, so some new developed real estates in Bulgaria as the apartments in Sunny Beach resort offer very promising perspective to long term returns on investment.
Bulgarian Property Investors OpportunitiesThe property market in Bulgaria offers one of the leading opportunities for the investors looking to buy residential or commercial buy-to let property, so many of the experts often compare Bulgarian property market with the Spanish one in terms of potential. Even at the hot spots like the sea and mountain resorts the prices are one of the cheapest in Europe, even more - there are a lot of off-plan developments which are preferred by the investors for their price. The improving bank services are also a factor that draws investments to the Bulgarian property market, since now mortgages with good interest rate can be arrange to buy a property in Bulgaria and some real estate agencies offer extended payment terms for their properties. The EU membership of Bulgaria from 1 January 2007 has also a positive effect on the Bulgarian property market, since this accession means that the infrastructure will be significantly improved. Another factor contributing to the investors interest in Bulgaria is the low cost of living, because the salaries in Bulgaria are much lower than in the EU countries, and also the cost of a holiday in Bulgaria is much cheaper than in any other EU country.
Bulgarian Facts and Figures Information - The population of Republic of Bulgaria is 7,7 million people, with territory that covers an area of 110,993 square kilometers, equating to a population density of 72 people per sq km- The official language is Bulgarian, though English is widely spoken, particularly amongst the younger generations- The neighbours of Bulgaria are Romania to the north, Serbia and Macedonia to the west, Greece to the south, Turkey to the south east, and Black Sea to the east- Life expectancy in Bulgaria is 69 years for men and 75 years for women- Bulgaria is a Parliamentary Republic.- In December 2006 the unemployment rate stood at 9,12%, while at the end of 2006 the rate of inflation stood at 6,5%. - The percentage of literacy rate is 98,5- The Black sea coastline to the east measures 354 km- The lowest point is sea level on the Black sea coast, while the highest one is Musala Peak within the Rila National Park at 2925m- The principal religion in Bulgaria is Eastern Orthodox.- Bulgaria’s domain country code is BG- The President is Georgi Parvanov, and the Prime Minister is Sergei Stanishev- Bulgaria has been a member of NATO since March 2004, and from 1 January 2007 Bulgaria has joined the European Union.- In 2006 Bulgaria's GDP grew by 6,1%, but still at the end of 2006 Bulgaria's GDP (per capita) amounted to just 26% of the average of the first 15 EU member states.
Bulgarian Real Estate PricesThe prices of the properties in Bulgaria are among the lowest in Europe, so even the cost of a good quality property in a popular destination as the Black sea or mountain resorts is affordable for most of the property buyers. For example, and an old house in the countryside may cost less than 5,000 euro. The deals with off-plan properties are also preferred by the buyers for being very profitable, so just in the last two years the estates prices have increased with more than 50%. The trend for the next years is that the prices will continue to rise with around 10-15% per year - a moderate, but systematic increase of Bulgarian property prices after the EU membership and maybe some time afterwards. Here are some examples for the prices of the properties:- An old rural house with 4 rooms near a historic town with need of repair and without water inside will cost less than 5,000 euro- Seafront apartment with 2 rooms near within 30 km from the international airport will cost 45,000-65,000 euro.- Luxury architect designed villa on the Black Sea cost with pool and garden may cost up to 200,000 euro- Double room apartment near in the ski village Bansko will cost about 20,000-30,000 euro- The price of an old 4 room house near the becoming more and more popular ski resort Pamporovo may cost 10,000-20,000 euro depending on its condition and the size of the garden.- New flats neat a golf playground are usually sold for about 30,000 euro

Bulgarian Properties 2008-07-20T19:42:00-07:00 Rating: 4.5 Diposkan Oleh: campos