Bulgaria - a byword for international property investment

A report issued today has referred to Bulgaria as one of the most rapidly advancing nations in Europe and suggests that it is becoming a "byword for international property investment."

The report by Property Frontiers supports the assertion from Assetz managing director Stuart Law that "Bulgaria is likely to continue proving lucrative as a long term investment into 2006." It reveals that there was an average property price increase of 47.5 per cent in 2004 while growth in the first quarter of 2005 continued to be strong at 10.6 per cent.

Bulgaria boasts an incredibly varied landscape with hundreds of kilometres of Black Sea coastline and some of Europe's most promising ski resorts that are now providing genuine competition to the more familiar locations in the Alps. It is partly this remarkable diversity that has made Bulgaria such an attractive choice to property investors in recent years, with commercial investment similarly lucrative in winter as it is in the summer months.

Part of the appeal is the fact that it is an emerging market and this has always proved to be an attractive factor for property investors looking for an exciting and potentially money-spinning challenge.

The report also refers to the prediction from the World Trade Organisation that Bulgaria will be visited annually by 20 million tourists by 2010. The dramatic rise to prominence of Bulgaria as a tourist hot spot is balanced by a commitment to high quality development and a policy of protecting natural resources. This is good news for investors as it indicates that the Bulgarian authorities have learned from the development mistakes made by other European countries.

With EU accession only likely to take place in 2007, property prices are still relatively low in Bulgaria although Property Frontiers has observed a significant trend in the cities of other Eastern European nations once EU accession has been granted.

Warsaw, Prague and Bratislava all jumped ten places in the Mercer Global Cost of Living Survey after their respective nations joined the EU, and price rises in Bulgaria during the last year suggest the same result is likely there too.

Specific areas of property interest include the mountain and coastal regions with ski resorts and traditional beach holidays becoming more popular each year. There is also an emphasis on golf resorts and spa health centres at the moment and Property Frontiers suggests that these areas can provide year-round rental potential.