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Bulgarian Property News
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. 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 grow this forecast by leading property analysts for the medium term. According to estimates by The Economist magazine, the value of residential property in developed countries increased by more than 30 trillion dollars from 2001 to 2005, an increase equivalent to 100 per cent of those countries' gross domestic products. According to Iliev, all apartments in the Paradise View complex near Sozopol have been reserved. According to the respected CIA Fact book, Bulgaria's GDP has also seen a 6.5% rise which has meant salaries have risen from an average ofEUR4,000 to EUR14,000 per year in the last 3 years alone. 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. Americans are going south to Mexico, Costa Rica, Panama, Nicaragua and Honduras in search of affordable getaways. And don't get me wrong, I won't blame it on the people from the Island who decided to venture some capital in Bulgaria. At the beginning of the month, Bulgarian Land Development (BLD), a London-listed Bulgarian property developer, said it will invest in five residential projects in Bulgaria, worth a total of 235 million euro. At the north coast the number of property deals decreased by three per cent to 13 000.Mountain resorts registered 4000 property deals in 2006. British and Irish buyers purchase property with the idea to sell it later on and make profit, Goranov said. 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. Bulgaria attracts investors because of purchase opportunities in Black Sea resorts and ski apartments in the resorts of Bansko and Pamporovo. Bulgaria has attracted foreigners for years with its warm climate, seaside and winter resorts and relatively low-priced properties, but interest grew into a boom last year. Bulgaria is turning into a top property investment destination and interest towards it increases. Bulgaria joined the EU in January, but that had no effect on the market, as foreigners can buy real estate long before the accession, with the exception of the land itself. Bulgaria was outranked only by Spain and France. Bulgaria's 2006 tourism revenue reached more than two billion euro, he said as quoted by Focus news agency. But if they worry about the value of their investment then they should also care about what surrounds their estate. Buyers have reserved 75 of the flats and signed preliminary contracts for the purchase of 53 flats, evidence of the interest shown by British clients. Company's manager Konstantin Bobchev introduced forum participants to opportunities for Bulgarian real estate market development and possibilities for real estate projects funding.FIABCI was established in 1952. Construction on the Harmony Hills complex is expected to kick off in February and to be completed in 15 months. For starters, there are a lot more wealthy people in the wealthy countries, and much of this new wealth has been generated off property. From an investment perspective I willn't put any money in it at all. Furthermore, British overseas property investors' passion for Bulgaria appears to differ between different regions of the UK, Easier Property reports. Given the speed of construction work that is not just a fear, it is a looming danger. I doubt people who bought a flat on the seaside from the web will care about that.On the positive side I always recall the situation in Prague. In Bansko, Razlog and Dobrinishte the increase reached 40 per cent.Prices in the resorts started at 400 to 500 euro per sq m and can reach up to 2000 euro per sq m, depending on location, construction quality and additional extras, 24 Chassa said. In second place was the other perennial favourite France with a little under 1/5th (18.9%) buying just across the Channel. In some regions of Britain, property buyers were even more interested in Bulgaria than in France. In such untrodden locations, prices for real estate were much lower, especially given the rising prices and interest rates in Great Britain, the magazine said. Investing in Bulgarian property still looks lucrative. Its 2007 edition will be held on January 10 and 11 2007 under the topic Rendezvous EU. Just browse the web or Google "Bulgaria and real estate" and you will find why it is actually good to have a country with gorgeous, still relatively well-preserved nature in the EU. 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. Maybe three or four years ago, yes, but the market has been rallied by unfortunate extreme over-exposure."Compare that to Lithuania, Latvia and Estonia," he added."They're the strongest growing, they have the highest GDP growth every year [in Eastern Europe]. Namely, the opportunity to utilise the equity locked in your UK home for overseas investment purposes, creating more returns with a buy-to-let property. Nearly 12 per cent of the inquiries for funds to buy property abroad came concerning property in Bulgaria as compared to 14 per cent for France, the report said. One may come to the sad realisation that in couple of years the sad picture of ugly buildings nested one over the other can overshadow the bright scenery you get from your window in Bulgaria. One of my biggest worries is that we may end up with over developed and ugly country and seaside. Only Spain and France are ahead as the top two markets for British investments in real estate.So it has become easier to get either an apartment on the seaside or a flat in a winter resort like Bansko for example. Paul Owen, AIPP's chief executive said: "It's gone from emerging to almost-established in three years, which is just unbelievable. Paul Owen, AIPP's chief executive said: "It's gone from emerging to almost-established in three years, which is just unbelievable. Prices there reached 1588 leva per sq m, a 14.3 per cent increase followed by Bourgas, having average price of 1312 leva per sq m.The highest increase of residential property prices was registered among the apartments offered in Turgovishte. Problems occurred since foreigners do not own the land on which their apartment or house is built.The Daily Express article is exaggerated, Goranov said. Quest Bulgaria, an English language magazine for Bulgarian property investment, cited statistics showing that 8 in 10 overseas buyers in the country originate from the UK or Ireland. Real estate specialists from more than 60 countries are members of the federation. Significant investment will be made in resort infrastructure in the three years to come.Bulgaria Dream Area is an annual conference dedicated to tourism. 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. Some €310 million (�210 million) worth of property was bought by overseas investors during the year's first quarter, representing a 63% increase on 2006 levels, the report shows. Spain and France, however, continue to be more attractive for investors with 30 per cent inquiries for property purchase in Spain. 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. The Association of International Property Professionals (AIPP) described the position of Bulgaria as "phenomenal". The average price increased by 16.3 per cent reaching 810.6 leva per sq m.Price decrease was registered in none of the Bulgarian towns. The comparison with Spain is not far fetched. The construction boom in the most popular resorts in Bulgaria brought up questions concerning the prices of property which allegedly will decrease due to over-supply. The country is in a unique position as it has enjoyed immense growth in a short period of time. The developments are in the Black Sea resorts Albena and Sozopol, the winter resorts Pamporovo and Bansko, and Sofia, BLD managing director Hristo Iliev said.The Harmony Hills apartment complex near Albena will include 202 apartments. The Economist's dire prediction in 2005 that this property boom is the world's biggest bubble that is about to kaboom has yet to be actualized. The global migration from the developed world has been unleashed by a number of factors. The increase is by 30 per cent in comparison to the number of deals in 2005. The market is still vibrant and even if that brings pressure for the Bulgarians because of the higher real estate prices there are no complaints so far.There are even a growing number of British citizens who have started living in Bulgaria. The online travel company 'Opodo' is also predicting that Bulgaria will be the most popular emerging holiday destination for 2007. The relatively low prices are still the dominant pusher in the eastern direction. The trend was expected to continue in 2007 and 2008, Bulgarian news agency BTA reported.A new type of tourism, property tourism, was emerging in Bulgaria. There is doubt this applies to those who are in it only for the expected profit of a future sale. There is no doubt that the requirements of the buyers for what surrounds their property can provide enough fire. There the growing number foreign owners did force the prices up but it also boosted the quality of construction. They report that bookings to the country have risen by 40% in the last six months and they expect a significant further increase. This is Money reported that inquiries for purchases in UAE ranked fifth, US third and Bulgaria was on the fourth position. This is reflected in recent claims from Quest Bulgaria magazine, which said that British interest in Bulgaria is at a very high level - comparable even to France in some parts of the UK. This type of pressure will come from people who get on the plane and look at what they purchase. Turkey, Cyprus, Greece and Portugal were also among the top 10. Well-established locations started to lose their market share at the expense of new destinations like Bulgaria, Dubai and Cape Verde. Westhill Investments' guide includes tips such as checking the square metres of usable space against the price....A UK advisory company has issued a buyers' guide to Britons hoping to invest in the Bulgarian property market. What can put pressure on the local business and authorities are actually the new owners. What will be main reason is the mixture of desire to make quick money and the lack of strong control. You can actually a buy a house with a really cool view in a place a where you have fairly cheap daily air travel, too.When all is good there is no reason for concern or is there? You can think of Spain in the late 80s and try to recall what happened there.
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