Investing in Plovdiv

John Lindley, Bulgarian Properties, Plovdiv office, 24th March, 2006

Despite the predictions of a falling market property in the UK it is still a good idea to look at other world property markets, especially those in Eastern Europe. Properties, particularly in Bulgaria are still reasonably priced and are predicted to increase in value considerably in 2007. Plovdiv which occupies an important strategic position in Bulgaria has yet to see the price increases in the value of property that have characterized other European cities like its’ neighbour Sofia or places in other parts of the former eastern bloc like Prague and Budapest.

An increase in unemployment and a rise in interest rates, amongst other things, could trigger of a house price crash in the UK enabling first time buyers to get a foothold on the property ladder. However the likely scenario favoured by most financial commentators is the idea of market stagnation lasting for the next few years. If this is the most likely outcome then renting for the time being may seem the only option for some people in the UK.

However there are other ways to invest in property outside the UK which can achieve capital appreciation over the next few years. The countries of the former eastern european bloc are part of a fast emerging real estate market which promises high rewards for those willing to invest.

Already in Budapest and Prague properties increased by 25% by the end of 2004. In Sofia, apartment prices in the prestigious Lozenets district almost trebled between 2002 and 2004.

Plovdiv has a good chance of experiencing real estate growth due to its unique strategic position with, not only the rest of Bulgaria, but also the rest of central Europe and beyond. Already international firms have decided to relocate their offices to Plovdiv instead of Bulgarias’ capital city, Sofia because of the favourable commercial property prices on offer. Only time will tell whether Plovdiv real estate will reach the same heights as Sofia, Prague or Budapest. Whatever happens property prices will definitely not be the same again once Bulgaria enters Europe in January 2007.

Invest in Plovdiv region

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