If one country typifies the explosion of interest in Eastern Europe it must be Bulgaria, reads an article published in Independent this month, which is also what a recent comparison in the growth of prices in the European Union and Bulgaria pointed out as well.
Many articles in the British press and television express the great interest shown in the purchasing of property in Bulgaria and it is one of the most dynamic developing markets for real estate properties in Europe.
The rise in the price of real estate properties in the European Union to the end of last year was about 8.7%, according to research carried out by Barclays Bank. The growth of prices for the same period in Bulgaria is nearly 25%, with significantly higher increases expected for 2005. This shows that the dynamic progress of this particular market will continue, with the promise that Bulgaria will remain one of the most attractive places for the astute Western investor.
The circumstances that corroborate these expectations are the continued significant rises in the price of properties with-in country members of the EU, compared to the low rate of growth achieved by property investment values in these EU member countries. The cases in point are the southern countries of Spain, France and Italy which are famous as a traditional location for purchasing a holiday home or the so-called “second house”. For example the rise of prices in Spain is 17.2%, in France 15.5%, in Italy 12.8% and in Ireland 12%.
One of the prime reasons for investment in the Bulgarian market is the low initial purchase price and the high potential for development, it allows for the possibility of a much greater return on your investment within a stable environment. This gives to Western European investors the promise of a prompt return on invested savings in Bulgarian properties.
British experts have pointed out that one of the basic reasons for the growing interest in Bulgaria is the rising prices of homes in Spain and France during the past few years, in these two countries alone are located two-thirds of the “second homes” of British people. This has discouraged thousands of people who wanted to settle in Southern Europe but are now finding the acquisition of their holiday home in these countries prohibitive. The authors have quoted foreign specialists in real estate prognosticating that British people will move their “second homes” from the traditional locations in Spain and France to the newly rising markets in Central Europe and Bulgaria that also enjoy a similar climate.
Expectations about Bulgaria’s EU accession will keep the forecast’s high and the current upward trend in market prices, at this time almost all dealings with property are profitable and bringing benefits to owners. In fact property investment is one of the lowest levels of capital risk currently available in the marketplace.
Another question often asked is, Why are property prices so low? This is best answered and mainly reflected in the local infrastructure and physical condition of any potential purchase plus the lower standard of living and overall environment.
Equilibrium in the market will soon be reached in some areas as a result of the incredible growth of development and building plans for the Ski resorts and Black Sea coast. However quick profits and good long term investment growth is best sought away from these areas in under-estimated properties away from the major resorts and cities.
The signs can easily be recognized, they are:
(1) Ongoing investment plans regarding the local infrastructure (including roads, development of a new holiday resort or residential complexes matching EU standards, new sport facilities and land falling with-in new local development plans)
(2) Natural resources (including nature reserves, beaches un-spoilt by nearby high-rise developments, locations where old traditions and style’s of living are still preserved and rural locations offering peace and tranquility with clean air)
Naturally Bulgaria’s membership into the Common Market will have a great influence on the equilibrium between supply and demand and the biggest returns and subsequently greater profits are certain to be shown by those wise enough to invest prior to this happening.
The coming year of 2005 promises to show the greatest return on capital invested to those astute enough to see the potential in areas away from the major resorts.
