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Available properties: 341
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Contact Us
BULengineering Ltd
Real Estate and Trade Company
BG Phone:
+359 87 957 4563
+359 88 765 0873
BG Fax:
+359 2 980 10 96
Representative for UK customers:
+359 877 579911
Mr.Kalin Dimitrov
Representative for RUSSIAN customers:
+359 879 574563
+359 887 650873
Mr.Dr. Draganov
E-mail:
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 ICQ # 373-225-646
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Quick Guide to Bulgarian Property Investment
Bulgaria is turning into one of the hottest property markets in Europe. It has been interesting to see the development and recognition of the market over the past 18 months along with the number of agents and developments increasing dramatically. With all the hype, it can be confusing for investors to obtain the information that they require to make an objective decision whether to invest or not in this location. Given this, we have provided some information about investing in Bulgaria which we trust will be of use and interest.
Where to invest
Don't be tempted by the low priced properties that are heavily cited in Bulgaria as offering 'good value for money'. Even in this emerging market, it is true to say that you get what you pay for! We have found that, for property priced under £10,000, investors are generally looking at property in isolated areas with low rental potential and poor capital growth. With the prospect of EU membership looming, Sofia, being the capital of Bulgaria, also has strong investment potential with corporate and business lets on quality property giving the highest rental income. Be careful when you buy property that you know who your target rental market is as Bulgaria is relatively poor and even low cost property could have to have unrealistic rental levels if you overpay.
Buying before full EU accession should mean instant capital returns once Bulgaria becomes a full member, although bear in mind that nothing is certain in this regard. A number of low-budget airlines are scheduled to fly to Sofia from 2007, which should enhance the appeal of this city to holiday makers as the location becomes more accessible to the rest of Europe.
Ski resorts like Borovets, Bansko and Pamporovo offer both winter and summer rentals - however occupancy levels will be lower in the summer and rents are around half the winter level per week. Even so, this gives ski resorts an advantage with regard to rental income especially as they are cheaper still than the coastal locations.
The beach resorts offer good value for money but be careful to buy quality if paying a high price. Don't pay front line prices for a second line location and do check out the latest golf and spa resorts that are coming soon if premium property and rentals is what you are after.
How to invest - a few essential points
- Payments in Bulgaria are usually around 80% of the purchase price prior to completion and this is organised into a series of staged payments. We would not usually recommend paying over 80% before completion for any investment, but in some circumstances a developer will offer a substantial discount from the purchase price for a higher deposit. Be sure to ask for copies of relevant building licenses and/or bank references before committing to such a large proportion of the monies.
- Ensure that your deposit is paid via a lawyer, not direct to the developer. Your lawyer will ensure that your contract is in order before passing any funds over to the developer. This is important as bank guarantees, such as those available in Spain, are not available in Bulgaria. As always, we recommend that you obtain full legal advice in relation to your investment.
- The Bulgarian Mortgage market is relatively immature at the present time. With interest rates currently at 7%, we would recommend releasing equity in the UK from existing property to fund a purchase. We can assist with any financial questions you may have.
- Be careful about guaranteed rental income offers. There are some exceptional opportunities to obtain good returns on your investment in this way, but be sure to check that your guaranteed rental income is backed by a contract with a reputable tour operator, not simply an inflated purchase price to enable the developer to return "your own money" during the early years of your investment.
- You should contact us directly with any further questions that you have about the legalities of investing.
To conclude.....
Bulgaria is looking likely to provide a lucrative long-term investment, and any risk of investment in this "emerging" market is outweighed by the advantages to be gained by investing in a low cost location on the verge of EU membership.
Property prices remain amongst the lowest in Europe and a burgeoning tourist market is growing by 22% per year. British visitors increased by around 35% in 2005 alone. However, to obtain the best returns on investment you need to have an insight into the right types of property and the right locations in which to invest.
As the Bulgarian economy is in a period of growth at the present time, and as this is likely to continue in the medium to long term, now is the best time ever to invest in Bulgaria and obtain maximum returns. We can assist you to achieve this successfully.
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