Buying Property in Bulgaria

Now that Bulgaria has become one of the most well known emerging property markets in the world - so much so that everyone seems to be considering buying property in Bulgaria - do any areas of the country still represent a good investment choice for those hoping to enjoy strong capital appreciation and rental yields? 

This article is about buying property in Bulgaria specifically in the country’s Black Sea beach resorts, it is also an examination of the coastal locations offering an investor the opportunity to earn a decent income from a well chosen piece of real estate as well as the locations likely to offer the best opportunity for underlying property price growth over the medium to longer term.

Bulgaria’s Black Sea coast was the first part of the country to boom in terms of its property market appeal.  Those who got in first have definitely seen the underlying value of their property rise.  But with popularity came sharp building practices and many who were in it to make a fast buck.  As soon as many property investors realised what was going on they fled to the mountains and began investing in ski property instead!  In the meantime however a more mature feel has come over the Bulgarian Black Sea Coast and beach property in Bulgaria is once again under the spotlight of many an international investor.

Areas where prices have risen fast but where there is likely a strong medium chance of decent price rises and improving rental yields in the future include the small towns of both Balchik and Kavarna.  Both towns are close to Varna and the airport making them accessible and desirable, both are to have easy access to two golf courses that are under construction and both are historically rich, architecturally striking and have access to great beaches.  Balchik is definitely the nicer of the two towns - a fact reflected in its property prices - but both offer an investor the chance to buy now and market to those in search of a sunny retreat with golf courses close at hand in the future.

Golden Sands is another resort with room for growth but also one offering an investor who buys a well located and serviced property the chance to tap into immediate rental yields averaging around 7%.  The resort is not as famous or as popular as Sunny Beach but it is also less over developed as a result and manages to retain a great deal of original charm.  For this reason it is growing in popularity but strict building controls mean that there could come a point where demand for beach property in Bulgaria in Golden Sands actually outstrips supply which would naturally lead to a steep price hike.

Future potential for growth in both the demand for rental accommodation and subsequent property price gains definitely exists in Obzor.  The town is small, low key, offers few of the facilities and amenities tourists want at the moment but apparently investor and developer interest is heating up in this unspoiled beach resort meaning that it could well become the next area of Bulgaria’s Black Sea Coast to witness a building boom.  Starting prices for land and real estate are low at the moment but if the rumours are true and the area around Obzor is about to be significantly developed then this situation will not last and prices will rise.  At the moment though an investor cannot be assured of earning an income from a property in this area as it has little to offer tourists compared to resorts such as Varna and Sunny Beach.

And finally Sozopol (pictured) - which is in our opinion one of the most charming of all Bulgaria’s coastal seaside towns – it offers investors looking for long term capital appreciation an excellent opportunity.  As the delights of this resort become wider known so demand for beach property in Sozopol will increase and yet there is a natural restriction on the supply of homes for sale which could give an investor with a well located property the chance to tap into excellent capital appreciation.  Alternatively for those looking for a lovely seaside home in a charming and traditional Bulgarian town Sozopol is not to be missed on your property hunting trip.

Beach property in Bulgaria is not restricted to apartments in Sunny Beach or villas in Varna - property hunters should do their research into which parts of Bulgaria’s Black Sea Coast have been earmarked for development and improvement, where there is permission for tourist facilities such as golf courses or marinas and they should think about what it is they want to achieve from their investment, which area will best offer them the chance to do that and then they should hunt for the best bargains according to their budget.  It is still possible to earn a decent income and enjoy strong capital appreciation from beach property in Bulgaria - but it can be hit and miss and it is not a case of simply buying the first thing you see.  Buyers have to research the market for opportunity and potential.

Special Reports: Property News for Bulgaria

Bulgaria Property Investment Facts
An examination of the fiscal, political and geographic reasons behind the Bulgaria investment property sector's increasing popularity.

Bulgaria Property Buying Process
The property buying process in Bulgaria is relatively simple with a restriction on foreign ownership of land easily overcome

Bulgarian Guide for Property Buyers
Guide to Bulgaria: why the Bulgarian property market's booming as real estate investors flock to this emerging economy