This soon-to-be EU country has everything buyers need.
The natural beauty of Bulgaria is obvious and well documented, there are many ancient historical towns, spas, mountains and beautiful beaches along the stunning Black Sea coast. The whole package for sun, ski, culture and nature holidays make Bulgaria interesting as an all year round tourist destination. However, if you look beneath the obvious advantages of Bulgaria as a holiday or investment location and look at the underlying economics a much more appealing picture develops.
Gareth Clarke, Development Director for KHG Development points out some compelling facts regarding the current state of Bulgaria and the potential for this young property hotspot. Mr. Clarke says, ‘this is a young, democratic economy, growth is flourishing as tourists realise the huge advantages. Tax is low and annual capital growth is at 25 per cent and even up to 50 per cent in desirable areas. Tourist numbers were up hugely in 2004 and 2005 with British tourists increasing by over 40 per cent - and they will continue to return year after year. The EU accession treaty has been signed, Bulgaria will join the EU’.
It is well documented that the property markets exploded in Spain, Portugal and Ireland after they joined the EU, this is excellent news for Bulgaria. Bulgaria is taking a careful path toward integration, there is an ever-improving business environment, the lowest operational costs and tax rates in a European market economy.
Property demand is not restricted to wealthy Western Europeans - domestic demand is growing rapidly, less than 4 years ago there were no mortgages for the local population – compare that to the UK where the mortgage business is a mature industry, access to funds for investment has a massive impact on the economy – this will eventually happen in Bulgaria, and in turn drive up the cost of housing. Now that Bulgarians can borrow money - add to this the investments flowing into the economy from other sources – we will see prices rising from the domestic economy also. The number of mortgages being underwritten is increasing annually well in excess of 100 per cent. Bank credit will continue to grow and will significantly contribute to sustaining the property market growth till western levels are reached.
Ex-Pat Bulgarians are also fuelling the property boom, there are more than one million Ex-Pats working outside of Bulgaria. During the last 4 years property investment from Ex-Pats grew to approximately 10 per cent of the market. This is further increased by money ‘sent home’ from Bulgarians living abroad, sending money back to relatives whom are in turn investing into the growing property market.
The national currency – the Lev - has been pegged to the Euro. The recent governments have been progressive, making fast-moving political and economic reforms aimed at global integration. Bulgaria is a member of NATO and has a highly skilled, multi-lingual workforce working at Europe’s most competitive wage levels.
Having been widely acknowledged as a bona fide holiday hotspot, the latest statistics
show that tourists have definitely taken note of Bulgaria’s attractions. Visitor numbers have already increased by 12 per cent this year and the World Travel and Tourist Council (WTTC) forecast the demand for travel and tourism to Bulgaria will continue rising at 6-7 per cent over the next decade.
Bulgarians have shown themselves (as a people) to be disciplined which has positive and long-term implications. Investment is flowing in and with this comes jobs which will create long-term sustained growth. With the combination of local demand and foreign investment rising steadily we are confident that this is the right time to be buying and investing in Bulgaria.
When a country joins the EU it has to open its markets to foreign companies.
Joining the EU will bring a significant amount of public investment into Bulgaria
of course there is one effect that joining Europe has yet to bring. That is the public sense of confidence and well-being that actual membership will bring. This is the icing on an already ample cake. EU membership will bring many benefits to Bulgaria, most of then however, have already arrived.
Mr. Clarke of KGH Development says ‘this opportunity will not last forever, looking at Bulgaria’s natural attributes and the strong economic position make it a clear favourite for investment in 2006’.
KHG Development Ltd
020 7993 2743
BulgarianLiving.com