Bulgaria – Hot Or Not?

Easier Property News, 21st September 2006

When the question arises as to whether Bulgaria is still a good place to buy, the answer is yes, but only if you know where and what.

Bulgaria itself is enjoying a boom time. It is no longer seen as a grey Communist state and has made impressive progress towards long-term stability and sustained growth. Tourists are pouring in at a rate of over 4 million per annum and it is estimated that by 2010 this figure will have increased to 20 million.

Despite astonishing price hikes of over 30% per annum for the past three years, low property prices still offer investors excellent opportunities to ride the wave of capital growth as Bulgaria heads towards pending EU accession in January 2007.

So is there any room left for property values in Bulgaria to continue rising at this phenomenal rate, and if so, where and for how long?

The capital city of Sofia is set for a period of exciting sustained growth and the ski resorts of Bansko, Borovets and Pamporovo are particularly exciting markets.

Sofia is already considered an ideal centre for outsourcing, with its highly-trained and low-cost workforce. Hewlett Packard has recently outsourced its IT operations to Bulgaria. Other multinational companies investing include General Motors, Capital One and Ford, plus retail giants Marks and Spencer and Intersport, attracted by Sofia’s ambitious new malls.

The three ski resorts’ surging popularity over the past two years has been driven by a solid combination of soaring tourist numbers and property buyers capitalising on the vast inward and foreign direct investment being poured into these resorts to develop cutting edge facilities and modernise the infrastructure. Market sustainability will come from their improving year round yield potential as their summer seasons grow in popularity.

The stunning resort of Pamporovo alone has seen over €55 million invested in the past two years. Further investment will provide a new gondola lift system and double the number of ski pistes. Tour operators have seen tourist demand growing at 30% per annum and the summer season is also on the up. It’s not surprising when you consider a skiing holiday here is around a third of the price you’d pay in France or Switzerland. As The Independent remarked in a recent article, Bulgaria offers holidaymakers, “The cheapest ski vacation to be had anywhere. And it’s worth going for the culture and side attractions, including UNESCO-listed sites.” It is little wonder these resorts are thriving.

The investment potential in Bulgaria is certainly not over, and it’s definitely not too late to get into this flourishing marketplace.


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