Bulgaria tempts UK property investors

Assetz News, 16th January 2006

With the increased availability of cheap flights and the current popularity of relocation television programmes, property investors from the UK are becoming increasingly adventurous as they look for the perfect property.

In an assessment of the current European property market, the Independent has suggested that Bulgaria has now become a genuine alternative to France and Spain as an estimated 80,000 Britons make the decision to purchase a second home in the coming months.

Peter Esders, a partner at law firm John Howell & Co, states that because some people are solely interested in a holiday home while others will want either capital growth or income, it is impossible to isolate an individual area as the "best" choice for property investment.

Nonetheless, he indicated that the rapid rise to prominence of a number of Eastern European markets had led to a shift in the usual emphasis.

"Spain and France are still popular - but probably not as much as they used to be because of these new countries," said Mr Esders.

"More and more people are thinking about buying in places such as Croatia and Bulgaria," he added.

The Independent has rated a number of countries in terms of access, property market and general pros and cons. Bulgaria is rated good for access because it is well served by airlines, but the assessment does not take into account the fact that the situation is likely to improve again with Sofia Airport expecting to open a new terminal in 2007.

Mr Esders has advised people to be choosy when looking to invest in property in Bulgaria because of variable growth rates. Borovets, Pamporovo and Bansko have all been highlighted in recent months as lucrative possibilities for property investors.

"I think both Sofia and the skiing areas are going to be good investments for a while. However, lots of people have been buying on the coast so the level of value increases there are unlikely to be sustainable," he suggested.

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