New Emerging Investment Property Hotspots in Bulgaria

So much has been written and said about the current prospects for the investment property market in Bulgaria now that the nation has joined the European Union; opinion ranges from those who believe the hike in property prices prior to EU accession represented the majority of the positive adjustment due in Bulgaria, to those who are certain that property prices could now mirror those of other recent EU entrants where prices doubled following accession.

In this report we want to step away from this argument as we have already explored in it in earlier reports - instead we would like to present three new emerging investment property hotspots in Bulgaria where we believe there is still room for significant price expansion and where we are quite convinced future investors will be looking in order to achieve straightforward property price growth as well as strong ROI. 

The Property Market in Veliko Tarnovo

Veliko Tarnovo is a stunningly beautiful town with amazing architecture and great tourism interest; it is located in central northern Bulgaria and is probably the most historically and culturally rich location in Bulgaria. 

Historians have dated the establishment of a settlement on the location of modern day Veliko Tarnovo back to the 4th millennium BC and over the generations that people have lived, worked and thrived in Veliko Tarnovo, so the town has developed uniquely. 

Today it is a town rich in tourism attraction and one where the municipality and town’s mayor are well aware that they can create a unique environment for sustainable tourism demand. 

So far their concerted efforts have resulted in the successful attraction of record numbers of local Bulgarian tourists and going forward Veliko Tarnovo is achieving something no other town or city in Bulgaria is – and that is the attraction of valuable Japanese tourism interest.

In addition to the development of a highly successful and niche tourism market, Veliko Tarnovo has the second largest university in Bulgaria where international students gather to study over 60 different disciplines. 

Tourism and education are the two main reasons why property investors should consider Veliko Tarnovo for current market entry – it is likely that in the future the foreign businesses investing in Bulgaria will broaden their horizons and move away from Sofia, and when they do this town could well become their next target for expansion.  It is a town rich in educated work force and it is a town aware of and developing and exploiting its unique attractions for sustainable tourism market expansion – meaning that there is strong potential for increased demand for real estate in the future which can provide those who buy today with the mechanism they need for the best return on investment possible.

Why Invest in Property in Stara Zagora

Stara Zagora is an incredibly strategically important location in Bulgaria and it also represents an important economic centre for the entire nation.  Located in central southern Bulgaria, Stara Zagora is a central hub for regional, national and cross border transportation - it has an excellent communications backbone, a good road network and a superior rail network for commercial and passenger transportation throughout Bulgaria and beyond to important eastern and western European cities - Sofia is 230 km to the west, Bourgas’ Black Sea Port is 180 km to the east, Rousse’s Danube Port is 235 km north on the Romanian border, and the Greek port of Alexandrupolis is 300 km south of the city. 

In addition to its strategic importance, Stara Zagora is famed for its healthcare and education establishments as well as its thermal mineral springs and health spa resorts – but even more importantly the city is a key clothing and textile manufacturer with many companies internationally exporting designer goods, special occasion gowns and suits, overalls and heavy duty clothing as well as knitwear, leather and embroidery.

On top of the rapidly developing and successful clothing manufacturing industry in Stara Zagora the city produces lignite coal and electrical energy and is a centre for equipment building for the electronics, hydraulics and food processing industries.  All in all this is a city ripe for foreign direct investment with opportunities for international investors in so many industry sectors meaning that it is highly likely Stara Zagora will receive an intensification of commercial interest in the short to medium term and enjoy a booming property market as a result.

Investment Property Prospects in Blagoevgrad

The final new emerging investment property hotspot in Bulgaria for examination is Blagoevgrad which is a city and a province in southwestern Bulgaria.  The city is the administration centre for the province and it is also the economic and cultural centre of southwestern Bulgaria acting as a transportation hub for Bulgaria to connect to Greece, Serbia and Macedonia and allowing these nations to achieve direct transportation to the capital city of Bulgaria, Sofia which is about 100 km north of Blagoevgrad.

Currently unemployment in the province is relatively high and yet this reflects the national average rather than suggesting there is a significant issue with this particular region.  If anything the employment prospects in and around Blagoevgrad should improve in the medium term as the city becomes a focus for commercial development and foreign direct investment from enterprises which would benefit from the strategic location of the city and possibly from its abundance of natural attributes such as mineral water and dense forestry.

At the moment the main employment providers are in the sectors of food processing, general agriculture, tourism, transportation, logistics and communications, textile and shoe manufacturing, timber processing and furniture production, iron processing and construction industry material production, and each of these sectors is of increasing interest to overseas companies seeking a low cost entry into Europe now that Bulgaria is an EU member state.

A further key reason why Blagoevgrad is of interest is because it is home to two developing universities and these are attracting growing international recognition and interest meaning that not only is there commercial property investment potential in the city and the province, but there will be a knock on effect of economic advancement that will positively affect the residential property market.

To say that Bulgaria has been over exploited and offers nothing for the property investor seeking a solid basis on which to build his investment decisions is inaccurate.  Rather those who move away from merely focusing on tourism hotspots and the buy to let market in Bulgaria will find a market ripe with opportunity and promise.

Special Reports: Property News for Bulgaria

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