Property Investment in Bulgaria

As little as a year ago, before the words `Credit` and `Crunch` began to echo through our ears on a daily basis, European property investment markets were still thriving on the British money being poured into new apartments, holiday homes and renovated sites. Bulgaria in particular was one country that was pushed as an attractive summer holiday haunt and the winter snow capital of Europe.

It is certainly fair to say that a large number of building projects have since been put on hold and that there has been a significant rise in British-owned properties being placed on the market, however, there is still a great deal of activity going on in Bulgaria which is why anyone looking to invest, should give this special place a great deal of consideration.

Like Romania, Bulgaria is in a unique position – it benefits significantly from being a member of the European Union, but being outside the `eurozone`, it could be argued that it also suffers a great deal less in the economic downturn than countries like Spain, France and Germany. One of the key factors in recognising the potential of any foreign country as a property investment, is to see beyond the tourist traps and coastal hotspots – there will be plenty of competition and holiday hotspots can be faddy – rather, look to those places that are likely to attract the most investment in a business sense.

With over 1.4 million people living in the Capital Municipality, Sofia is the largest city of the Republic of Bulgaria, and perhaps unsurprisingly receives over half of the country`s foreign direct investment. Investments are encouraged by the authorities with a cut in corporation tax rates and with two large American energy companies ready to settle in the city, the future looks remarkably bright for potential workers – who will no doubt need places to live. Microsoft, IBM, AIG, Hewlett Packard and GlaxosmithKline have also branched out in Sofia suggesting that it could soon well be one of the most important business centres in the whole world.

Ask most people what comes to mind when you mention `Bulgaria` and no doubt they will be plagued with images of bitterly cold winters, opera singers and it`s rather colourful military history. However, Bulgaria has much to offer in terms of its natural landscapes, beautiful architecture and cultural interests such as museums galleries and monasteries. Sofia is home to the world famous gold-domed Alexander Nevsky Cathedral and the Public Mineral Baths, and even some of its poorer areas are now benefiting from development plans such as Kostinbrod which is in receipt of a rehabilitation grant for the advancement of transport links.

It would difficult to discuss the benefits of property investments in Bulgaria without mentioning the cheaper cost of living, and with off-plan apartments ranging between 40,000 to 80,000 Euros, it is still very much a buyers market. Those who have already bought properties in the country are more likely to wait it out and watch as the world economy improves again.

Property investors would be wise to take look forward and consider the potential that Bulgaria has to offer. Where business is gradually nurtured, expect the population to rise and demand for accommodation to grow – it is difficult to anticipate what the next hot spot will be in terms of holiday destinations, but it is easy to see that Bulgaria is ripe for economic growth above many other `eurozone` cities.

Of course, one of the best ways to study the potential that any country has for a property investor, is to do a bit of hands on research and take a trip; for help in organising your trip to contact TheTravelBug, and for help with leaving your car at the airport see: Heathrow airport parking

TheTravelBug Website - Bulgarian Advice and Property For Sale

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