Bulgaria’s Property Market Success is Sustainable

There is irrefutable proof that the Bulgarian authorities respect the amount of revenue that their nation has generated from overseas investment into property to date because they are committed to doing all they can to maintain, develop, enhance and promote tourism - on the back of which the majority of speculative property investment has so far been made. 

In our opinion this means that Bulgaria’s property market success is sustainable for the long term if investors make smart and informed decisions based on research into which areas of the country are most in demand from tourists, which areas are being invested into and increasing in popularity, and which pockets of Bulgaria are likely to emerge as favourites with both the more affluent holiday maker and the international retiree or expatriate seeking a new permanent home.  This article presents an example to support the current Amberlamb opinion.

The Significance of Tourism in Bulgaria

From January to September 2006 tourism revenue in Bulgaria increased by almost 6% compared to the previous year’s total, and the actual number of overseas visitors exploring the nation was up almost 5.5% proving that not only is the nation welcoming an increase in tourism numbers, but those who are visiting are actually willing to spend more.  Today Bulgaria is the third most popular overseas destination for British holidaymakers for example, and the percentage of the economy that tourism revenue represents is increasing annually.

Nowhere has all of this been more obvious than in the central northern Bulgarian city of Veliko Tarnovo where there has been a positive explosion in the numbers of overseas visitors exploring the delights of this stunning and ancient city and spending their money on accommodation, entertainment, food, drink and culture. 

The Veliko Tarnovo Investment Property Example

Veliko Tarnovo’s mayor Roumen Rashev has a strong vision for the direction he is taking his city – speaking recently at the locally held National Association of Spa and Wellness Tourism Event he announced that his city’s actions to date in developing and promoting spa and wellness tourism as well as sport, culture and heritage tourism have resulted in tourism numbers surging by 20% so far in 2006 with the final increase for 2006 likely to be nearer 30%.

As Veliko Tarnovo is not a coastal town nor does it have significant ski resorts in close proximity, it has had to carve its own tourism niche out of its raw natural ingredients which include an amazing location, fantastic history and culture, an abundance of mineral springs and a wealth of historic tradition - and it has done a fantastic job.  On the back of its efforts it now has an emerging but fast booming investment property market with buyers seeking to target international tourists requiring quiet centrally located apartments and outer lying village homes for example.

How and Why Veliko Tarnovo Represents Long Term Potential

The boom in investment property interest is not the most significant development taking place as a result of the changing face of tourism in Veliko Tarnovo – the most significant development is that the city has managed to attract Japanese tourists in abundance!  Japanese tourists are considered by many to be the most attractive group of travellers that any destination can welcome because they are polite, law abiding, civilized, affluent and they like to shop, sight-see, get involved and spend money!

These Japanese tourists have boosted tourism generated revenue in the city contributing significantly to the pot that mayor Roumen Rashev had already set aside for further improvements to infrastructure and general facilities in the city in a bid to further raise its profile suggesting that the desirability of Veliko Tarnovo as a year round spa, wellness, history, culture and sporting destination is only just beginning to emerge. 

Retirees and those hunting for their own special holiday home overseas are targeting properties around the city, many of which require substantial renovation, and they are creating their own perfect property abroad in this idyllic and now improving area.

For an investor seeking long term profitable exposure to the Bulgarian property market, this could mean that Veliko Tarnovo is an area to investigate further with potential for rental returns from the tourism market for newer properties and significant capital appreciation from the resale of older properties bought and renovated and in demand by international purchasers – oh, and let’s not forget that the city annually welcomes 22,000 students all seeking somewhere to live as well, reminding the astute investor that there are always angles to target for profit in popular destinations even when others maybe convinced a market is overblown or even yet to emerge!

In conclusion – those who have been quick to slate Bulgaria and dismiss its recent property market successes as a flash in the pan obviously haven’t spent much time and effort getting to know the country, its attractions, the sustainability of its desirability nor the potential evident on so many levels for its property market for today, tomorrow and for the future…shame on them and shame for them!

Special Reports: Property News for Bulgaria

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

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

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