What is it about Bulgaria that has attracted thousands of property investors to commit to the country?
Why does the Bulgarian real estate sector appeal so greatly to so many people?
And what is causing the continuous flow of new investment into the country?
These are all questions that those external to the unstoppable Bulgarian real estate market need answering!
Well, the reasons for the popularity of Bulgaria’s property market are manifold and this article will guide you to an understanding of the main factors driving the ongoing success of the Bulgarian real estate sector.
Bulgaria is on track for EU accession – that means that it is about to gain full membership of the European Union either in 2007 or 2008. When the country is a member it will benefit from freer trading rights, it will easily attract more foreign direct investment, more companies will set up offices and bases in the country and as a result employment opportunities will increase and overall the local Bulgarian economy will benefit positively.
Because Bulgaria is not yet in the EU however, many investors are buying property in Bulgaria now to benefit from the economic improvements that the country will enjoy once it does become a member. These economic improvements will likely translate into higher property prices in the real estate sector, therefore those who buy now believe that they will benefit from the greatest price gains and make the maximum profits and enjoy the longest period of growth.
Until Bulgaria does join the EU its property ownership laws are not in line with those of other EU countries which means that there is an element of risk to the whole property buying process which artificially keeps real estate prices low – as with any type of investment, the greater the potential risk the greater the potential profit. Therefore those who are not risk averse can see that the artificially deflated prices present them with even more opportunity for profit over the medium term.
Finally, property prices in Bulgaria may be artificially deflated but they are starting from a low position anyway because the country is just beginning to emerge into a first world country with first world infrastructure – as and when it joins the EU it will most likely make further leaps forward in terms of its development and this will make the country more attractive to more people which will increase the demand for real estate which will push up the prices for property and those who buy before this predicted boom will be able to reap the greatest rewards! And that is why the appeal of Bulgarian real estate market is so intense with property investors right now.
Rhiannon Williamson writes about real estate investment in emerging markets worldwide. To read more about property investment in Bulgaria click here. |
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