Investing in Bulgarian property.
Introduction.
I just can’t believe the prices of properties in some parts of Europe, if I had the cash I’d have no hesitation in buying a property in Bulgaria - now! Some friends and I are planning to spend the long vacation in Europe this year when we’ve finished our courses at University of Massachusetts, here in Amherst. Looking around on the internet for properties to rent rather than staying in hotels we were stunned at the investment opportunities in Bulgarian property at the moment. Hopefully the property market in Bulgaria won’t over-heat, so that in a few years time when I’ve got some cash I can buy some property in Bulgaria as an investment.
The Bulgarian property market.
Despite gaining full membership of the European Union in 2007, property prices in Bulgaria are remaining low and stable. Bulgaria property is no different to that which you can purchase in the USA with everything from small apartments to family houses and mansions, all exquisitely finished and equipped. Although one of the former ‘eastern bloc’ countries don’t be fooled by images of people going about on horse and carts. Living in a city in Bulgaria offers all the services and facilities we are used to along with some of the best unspoilt countryside in the world nearby. Subsequently, with the new found freedoms in the country; tourism in Bulgaria is an industry on the cusp of rapid expansion - meaning that now is the time to invest in Bulgarian properties that can be used as holiday rental accommodation. Also, the rapid economic growth in general in Bulgaria means that increasing numbers of professional people are being recruited from all over Europe and the USA - to staff jobs in industries that the local Bulgars are not yet qualified to do. This means that there is also an expanding market for Bulgarian properties that professional people can rent for longer periods.
Properties for professionals and tourists in Bulgaria.
The highest demand for long term property rentals to professionals is in Bulgaria’s two main cities - Plovdiv and the capital Sofia. Being the capital city property in Sofia does attract the premium rates - but it is also the most expensive to buy in the first place. For tourists there are several areas that are very popular. Enjoying a Mediterranean style climate in the summer, coastal resorts on the Black sea have been a popular holiday destination for years. Recent expansions to coastal airports has made access to coastal sunny beach property a lot easier and will undoubtedly boost tourism to places like Varna and Burgas. Purchasing Varna real estate is probably the hottest investment to make in Bulgarian property at present. Whilst anyone can own property in Bulgaria, the country has laws and regulations regarding foreign nationals building in the country. So, if you fancy becoming a property developer in Bulgaria you’ll probably need to work through a local agent. See articles 21 and 22 of the Bulgarian constitution to begin with.
The tourist season in Bulgaria.
If the idea of investing in Bulgarian properties for the tourist industry appeals to you; don’t just think it’s only a summer time business opportunity. Whilst the summers are warm and pleasant - winters are very continental, with plenty of cold weather and snow. Subsequently the rural and mountainous areas in the west and south of the country are popular ‘winter sports’ destinations. The best property investment opportunities for winter tourism are probably at: Pomporovo, Borovets and Bansko; all of which have great skiing and snow-boarding facilities.
Property development costs in Bulgaria.
Having bought a property in Bulgaria chances are you’ll want to make some alterations to it. In terms of buying materials and labor out there, the following information might be useful. The local currency is the Leva and currently you’ll get about 2 Leva to the dollar. The average monthly salary in Bulgaria is around 300 Leva a month, so relatively speaking labor and materials will be cheap to get hold of.