Bulgarian property: Still a good place to invest?

At the start of 2007, many people in the foreign property industry predicted that Bulgarian property prices would slow. However by September 2007, the average property price in Bulgaria had risen by 32%, the largest national increase of any country in the world.

Investors – both foreign and home – played a massive part in the Bulgarian property market with over 11.3 billion Euros invested during 2007, over 2.3 billion Euros more than was invested in 2006. 40% of the foreign investors buying in Bulgaria came from the UK, closely followed by 38% from Russia.

This foreign investment in Bulgarian property has had a positive impact on the Bulgarian economy – the extra input of cash has allowed the country to make infrastructure improvements around the country, and this in turn has led to even more construction. Nikolin Gavrailov, President of the Bulgarian Entrepreneurial Chamber in Building, has revealed that the turnover for industry in 2006 was 5.6 million Euros with construction in a number of sectors including apartments, retail units and administrative building. He also predicted that the construction sector was set to increased between 12 and 16% year on year until 2010.

This is good news for those who have invested, or are looking to invest, in Bulgarian property. Better infrastructure means more tourism and more homes and this must be good news for rental returns and property price growth.

There is more good news on the horizon too – the Bulgarian government has made big changes to the tax system with both income tax and corporation tax set at a flat 10%. This new rate applies to all works, investors and companies, regardless of income and profit, and this means that Bulgaria is fast becoming a very tax-efficient place to invest in or relocate to.

All this means that despite the doom and gloom of some predictions, we at BuyingForeignProperty.com believe that there is still life in the Bulgarian property market and, although property price growth may slow a little, there are still good returns to be made on property in Bulgaria.

RSS Feed for This Post5 Comment(s)

  1. Sam Malowe | Feb 14, 2008 | Reply

    The national average is up but several overbuilt areas are showing signs of a slow down. When advising people to buy in Bulgaria one should be careful not be overly optimistic about it. Sunny Beach prospects are not looking good. Even the State Tourism Agency came on the news calling upon regulators to act and demolish some hotels and condos in order to boost service and quality.

  2. Carl | Feb 14, 2008 | Reply

    That’s true Sam, but the same could be said of pretty much any country – just because the average price is rising, doesn’t mean that your property value will! And the reverse is true too: just because national property prices are decreasing, it doesn’t mean you can’t still turn a healthy profit on a property.

    I guess the moral of the story is to always do your homework!

  3. Lon Cooper | Feb 1, 2010 | Reply

    Thank you for the intriguing read!

  4. Mac | Jul 7, 2010 | Reply

    I want to post quick hello and want to say appriciate for this good article.

  5. invest in Bulgaria | Sep 15, 2010 | Reply

    Invest Bulgaria offers professional assistance to foreign investors planning to

    establish or expand business operations in Bulgaria

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