Bulgaria’s Investment Property Sector Broadening in Appeal

Bulgaria’s property boom began along the sometimes sunny Black Sea Coast where there are many pretty towns, plenty of clean sandy beaches and now a plethora of often poorly designed and constructed holiday apartments and villas. 

But as the real estate market matured so did property development standards in Bulgaria and today the country represents an excellent investment opportunity on many alternative levels.

The coastal resorts aside, those looking for emerging commercial investments or a ski property market ripe for exploration will find a great deal of choice and quality property available in Bulgaria and a rental market that’s expanding rapidly providing the basis for sustainable rental yields and long term capital appreciation.

When one thinks of making an investment into property in Bulgaria the majority of people consider ski or sunshine properties and making an income from the tourism market in Bulgaria for a few short months of the year…but for those seeking an alternative market sector that has already proven its worth, the commercial property market in Sofia (pictured) is the place to look.

As Bulgaria’s economy expands rapidly as the country progresses towards EU accession, so the number of international businesses establishing centres of operation in Bulgaria grows.  Furthermore, Bulgaria is beginning to establish itself as an alternative offshore outsourcing centre primarily for a number of IT based companies.  These factors mean that there is a constant demand for Class A and Class B commercial space in the country’s capital city of Sofia which has seen office vacancy rates falling dramatically and rental rates increasing steadily throughout 2005 and to date.

There is nothing to suggest that the demand for commercial space will tail off – quite the contrary in fact - expert economic predictions suggest that Sofia will not truly come into its own as a major European business centre until the country achieves accession, at which point it is expected that even more companies will relocate or establish offices in the country and push demand for commercial space even higher.

If commercial property investment does not appeal the winter sports and mountain ski resorts in Bulgaria offer an investor another alternative sector to explore.  The majority of property development projects currently under construction are far better designed and constructed than the early developments that took place all along the Black Sea Coast.  Those who buy now are benefiting from the fact that Bulgaria has learned a lot from the mistakes it made earlier.

The added benefit for those buying in mountain resorts such as Bansko, Borovets, Pamporova and Vitosha is that in the spring and summer after the snow has melted there is a demand from walkers, hikers, mountain bikers and nature lovers for accommodation to rent as well which means that there is almost a year round market for property in parts of Bulgaria’s interior.  This fact has been little promoted but astute investors are quickly wising up to the broad range of investment property opportunity in Bulgaria and making a financial commitment to the country while prices remain affordable and before EU accession results in rapidly inflated property prices and even more competition for real estate from international property investors.

Special Reports: Property News for Bulgaria

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