Bulgaria Property is it Still a Good Investment?

We keep on hearing people that Bulgaria property investment has fizzled out and that may be true for developments with not many unique selling points to offer like great locations, good finance and payment options, guaranteed rental and good value for money prices.

As yes, a lot of developers jumped on the bandwagon and a number of poor quality developments were built and the demand from property buyers has slowed down as they are looking at new emerging markets.

However in our opinion the Bulgarian property market can still be a good investment if you choose your Bulgaria property wisely.

Sofia the capital city has an increasing strong domestic demand from the Bulgarians earning higher incomes and also touristic demand is predicted to continue for the ski resorts like Bansko and more notable Borovets (because of the Super Borovets project where 300 to 400 millions Euros are to be invested to improve the ski runs and facilities as well as tourist developments.

Super Borovets project will see the ski runs extended to 120 km and an enclave of luxury five star developments located in the exclusive Upper Borovets area located in the midst of the extensive ski network as well as leisure developments in and around the areas.

When finished the mega project, Borovets will be improved and dramatically different to that of today and we expect the investment will form a catalyst for growth in the area. Early investors in an Bulgaria investment properties in Borovets will be rewarded with significant capital gains.

So you see Bulgaria still has some good opportunities to offer investors as long as they do the research and purchase a quality property in exciting areas with good demand.

Here are a few quotes.

House prices in Bulgaria registered the highest increase in the world in 2007, According to figures until the end of September 2007, Bulgarian house prices had risen by 30.6 per cent. Source: BBC

2.2bn Euros in EU funds pledged to improve the country’s road transport system.
Source: Oxford Business Group, The Report Emerging Bulgaria 07

ExperienceBG have a good range of investment properties in Bulgaria. You can learn a lot more about Bulgaria and the other emerging markets on our website and also access country guides and reports for further reading and our sister website Experience International that specialises in overseas investment property in many new exciting markets around the world including Brazil, Cape Verde, Malaysia, Thailand, and Egypt to name a few.

source

Bulgarian Property Investments - The Pros and Cons Explained

Author: Damian Qualter BA MBA

Source http://mba-wisdom.blogspot.com/2008/08/bulgarian-property-investments-pros-and.html

Bulgarian Property Investment - The Pros & Cons

With residential property in the UK having reached a peak for the current future, investors have been desperately looking around for alternative locations with investment potential, and Bulgaria is tops on everyone's list. Many investors have already noticed that Bulgaria offers very good value for any money that is spent and it also has letting potential as a holiday destination.

The best investment opportunities in Bulgaria right now include the ski resort of Bansko and the Black Sea resorts of Varna and Bourgas. The capital Sofia is developing rapidly as a commercial Mecca as well, signalling that capital appreciation and rental yields should be very strong in the foreseeable future. Bulgaria saw property price increases of 35% in 2004 however the average yields on rental properties are still 8% to 12% thanks to the fact that most investors are buying in the Black Sea coastal resorts and 15% in ski areas. Some of them are investing in new developments instead.

For example, studio apartments in the Black Sea resort of Sunny Beach can cost the investor as little as £16,850. There are good opportunities out there for both city-centre buy-to-let properties and vacation homes that are also offering letting potential. Let it be known though, that despite promising returns, investors have to be wise to the risks that are potentially involved in buying in an emerging economy like this one.

Low prices attract the buyers who are looking for a quick-fix solution to pension problems, but as many agents as you can find will admit there is no guaranteed resale market in Bulgaria (or anywhere else for that matter) and little existing benchmark for measuring price increases other than more and more investors paying higher prices on a monthly basis. That is why long-term investment is recommended over instant returns.

There is, however a genuine demand for quality rental properties but written contracts with holiday companies are absolutely needed as a means of ensuring the buyer a guaranteed yield. Travel agents and tour agents who are no longer enjoying big mark-ups in Spain are looking for higher profit margins in Bulgaria and this does cause problems in the long-term future. High street travel agents and tour operators do have an amazing number of sun and ski holidays available in Bulgaria today and they are selling well, which goes well for future returns for quality locations and developments.

If you are really wondering what the benefits are to investing in Bulgarian Property; it is definitely the cost. The cons of course is that nothing in property investment is completely fail safe and therefore you need a regent in Bulgaria to act on your behalf and help you find a piece of property that will do exactly what you need it to.

About the author: Learn the Tips, Tricks & Secrets of Profitable Property Investing by Damian Qualter Managing Director of BuyProperty4Less - FREE Guide Click Here Now! Bulgarian Off Plan Property

Bulgaria property prices have increased by 5.9 pct on average, according to the National Statistic Institute. The calculations and statistics are done

Bulgaria property prices have increased by 5.9 pct on average, according to the National Statistic Institute. The calculations and statistics are done for the period April – June 2008 (Q2 2008).

The data corresponds to apartments in the cities, where newly built and off plan properties are not taken into account. Calculating it in value the increase is 76 BGN (approximately 40 EUR) per square meter compared to January – March 2008 (Q1 2008). At the moment the average price is now 1,376 BGN per square meter (approximately 705 EUR per square meter).

The most expensive apartments are Sofia, where on average the price is 2,312.50 BGN per square meter. The increase in Sofia is higher than the average for the rest of the country, 6.9 pct. In second place is Varna, where the price is 2,137.33 BGN per square meter on average. There the increase for the second quarter of 2008 is only by 1.8 pct.

Ruse comes third with 1,749 BGN per square meter, then Burgas 1,698 BGN per square meters, Stara Zagora 1,500 BGN per square meter and Plovdiv 1,491 BGN per square meter.

The cheapest place in Bulgaria is Silistra, where you can buy property for 715 BGN per square meter.

The highest increase of prices compared to the first quarter of 2008 is seen in Kustendil, approximately 15 pct, where the cost of property reached on average 780 BGN per square meter. A high increase is also seen in Plovdiv 13 pct, Veliko Tarnovo, Smolyan and Shumen 12 pct, Pleven 10 pct. There is only one area Bulgaria where prices have decreased, this is Targovishte 3 pct, where you can buy property for an average of 910 BGN per square meter.

Source http://guidebulgaria.com/bulgaria/bulgaria-property-index/bulgaria-property-market-q2-2008

Investment in Bulgaria

If you’ve had any interest in Bulgaria Property, the time to buy is now. Since it’s acceptance in the EU in January 01, 2007, it’s become one of the best investments you can make in Europe. Prices are still lower than many other European countries, but they’re slowly on the rise making it a great place to buy before it reaches the high prices of other European destinations. Everyone knows the time to buy property is when the economy is rising, and Bulgaria has seen an accelerated economic development. The investment potential is something to think about for the future, as it’s only going to get better, so the time to buy is now.

Source http://www.ccartstudio.com/home/investment-in-bulgaria/

New Property Development In Bulgaria Announced.

Hercesca International, the Spanish property developer has announced plans for a new £500 million property development in Bulgaria, situated between the cities of Sofia and Pernik.

The development, which will include over 2,000 apartments is a clear indication of Hercesca Internationals confidence in the Bulgarian Property Market, especially relevant at a time when many reports are suggesting the market maybe showing early signs of over-supply. The first phase of the new development is due for completion in 2012, with the whole project due for completion in 2016.

The new development also includes plans for a new railway station, which will allow residents a short commute into the nearby cities of Sofia and Pernik with trains every 15 minutes.

http://www.property-abroad-blog.com/2008/09/new-property-development-in-bulgaria.html

Bulgarian housing prices again up more than 30 per cent

Bulgarian home prices gained more than 30 per cent yearonyear in the second quarter of 2008, placing the country atop the global index of UKbased property consultancy Knight Frank, released on September 2

Source http://bgproperty-assist.com