|
Why invest in Bulgaria?
Land and developed construction prices are under its neighbour countries and well below west Europeans ones, which anticipates a longer run on the short and medium term. The newly gained EU membership, the benefits provided by the capital inflow added to the stable country growth of past years confirm a rising trend that allows us to predict significant profit expectations. It has one of the lowest company and 'personal' tax rates in Europe (10%) and all seasons attractive locations have made Bulgaria an extremely profitable country for real estate investors from all around Europe.
Furthermore, the number of impressive projects currently being developed in many parts of the country, where more than 20 golf courses are under development, combined with the more than 700 mineral springs are expected to provoke serious interest among wealthy tourists.
The tourist sector generated about a 15% of the GDP, more than 5 mln people visited the country in 2006, which meant a 6,5% increase from figures achieved the year before. Forecast for 2007 is 8,2 mln tourists, well above previous year.
English and Irish investors have been until this point the most serious real estate buyers, representing more than 70% of the foreign investment. Scandinavian, Germans and Spanish investors are growing everyday, and are expected to occupy 35% of the market vacation properties after having drawn a comparison between the local realty market and the Spanish market of the past 15 years.
We cannot forget that the EU admission, and the capital inflow after it, are multiplying the domestic purchasing power, which will allow Bulgarians access to products addressed nowadays in an 80% mostly to foreigners.
All these issues, EU membership which provides the necessary legal security to arouse foreign interest, continued capital inflows, the vast development possibilities, low labour cost, one of the lowest company tax rates in Europe (10%) and all seasons attractive locations have made Bulgaria an extremely profitable country for real estate investors from all around Europe.
First housing property development is one of the most active fields in the Bulgarian business market. Economic indicators have favoured internal demand which has consequently diverted in a price increase.
Cost of housing is still way below other European markets, but the development forecast on one side, and the recent EU membership will multiply these throughout the following years.
Sofia's residential property market, due to its capital of the state condition is the most active in the country with over half a million homes, other markets are catching up fast in other important cities like Plovdiv, Burgas or Varna.
When talking about Bulgarian citizens most of the sales occur when property is completely developed, lately although many investors are buying property off plan, looking to resell and obtain this way capital gains in this emerging market
|
|
|
