Bulgarian property offers year-round appeal: from ski chalets in the Rodopi Mountains to beachside holiday homes in the Black Sea resorts, Bulgarian real estate offers buyers a varied and safe EU arena in which to invest in overseas property.
Successful real estate investment in Bulgaria consists largely of high quality, well located off-plan developments. These can take the form of apartments in ski resorts like Bansko, Borovets, Pomparovo, Chepelare or Vitosha; summer holiday homes in Black Sea resorts like Sunny Beach, Golden Sands or Bourgas; or apartments, townhouses and villas alongside various championship golf resorts with multiple on-site facilities in some of Bulgaria’s most stunning locations. Investors also still benefit from the ongoing high demand for property in the capital city of Sofia. This demand comes from both tourists and local professionals seeking well presented accommodation within easy reach of work and local amenities. Buy-to-let investors in the city are currently enjoying some of the country’s highest average rental yields of around 8% per annum, in addition to ongoing capital appreciation.
Accelerating tourism
Bulgaria is a country rich in culture and history, which makes it a very attractive tourist destination for those who enjoy museums and other historically significant sights. With a temperate climate that gives the nation hot, dry summers as well as cold and damp winters, visitors and homebuyers can experience a wide range of activities and adventures depending on the time of year. A rich array of natural beauties awaits, including mountains and sea, accompanied by outdoor pursuits such as skiing, water sports, hiking and sightseeing.
Still a buoyant real estate market?
It is true to say that Bulgaria’s investment heyday took place some five years ago in the run up to EU accession; nevertheless, the mood in Bulgaria is still optimistic and since the country’s inclusion into the EU on 1st January 2007, foreign interest in Bulgaria remains stronger than ever. EU accession is now seen as a further good sign of rapid growth and economic stability in Bulgaria.Â
In 2007, property prices in Bulgaria soared by an average 28.9% compared with the previous year, according to the Bulgarian National Statistics Institute (NSI). Experts predict a 10-15% increase in real estate prices throughout Bulgaria in 2008. Meanwhile, a fast-growing mortgage sector with a wide array of products, including most recently interest only mortgages for up to ten years, is opening up the market still further to investors.
 Bulgaria’s success can be largely attributed to extensive World Bank and EU funding, facilitating improvements to Bulgaria’s infrastructure and tourism industry, fully transforming it socially and economically from its former Communist days. The World Bank predicts economic growth in Bulgaria to continue this year by some 6%, making it worthy of a close look as a strong investment location.Â
The country is also expected to join the Eurozone between 2010 and 2012 and this is considered to be another potential sign of future upwards price movement for the future, boosted by the wide availability of 75% mortgage finance to locals and foreigners in Bulgaria.
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