Bulgaria

Bulgaria is situated in South Eastern Europe and has a population of 7.7m. It has a strategic location near the Turkish Straits and controls key land routes from Europe to the Middle East and Asia. It has experienced economic stability and strong growth since a major economic downturn in 1996 led to the fall of the then socialist government. Steady progress on structural reforms has improved the business environment; Bulgaria has averaged 4% growth since 2000 and has begun to attract significant amounts of foreign direct investment.

Why Invest in Bulgaria

The Attractions of Residential Property in Bulgaria

Residential house prices forecast to rise 10% - 15% in 2006 and 5% - 10% in 2007.
Bulgaria has applied to become a member of the EU and is anticipated to join in 2007 - 2009.
Bulgaria achieved a 28% rise in property sales in 2005 which demonstrates a good level of transactual capability.
Bulgaria is attracting significant foreign investment in Sophia, The Black Sea and Ski resorts.
Bulgaria is attracting prospective holiday home buyers from Russia, Scandinavia, UK,
Ireland and Germany who are put off by today’s high prices in Spain, France and Italy.
Low property prices, an attractive climate, and eight “blue flag” award beaches have created strong demand, particularly from foreign investors.

Growth Drivers in Bulgaria

Bulgaria is expected to join the EU in 2007.
The prospect of hosting the Winter Olympics in Sofia in 2012 has attracted foreign investment.
Favourable tax regime.
The World Tourism Organisation placed Bulgaria as one of the most popular destinations globally in terms of tourism growth, and they predict this to triple in the next 15 years.

Key Risks when investing in property

Increasing concern of over supply in certain localities.
Regulatory framework can be difficult.
Concerns over corruption.
Lower market transparency.

	Bulgaria	EU 15 Average
Forecast Changein Interest rates (2006 - 2010)	0.95%	0.72%
Forecast Employment Growth (2006 - 2010)	2.34%	4.03%
Forecast Earnings Growth (2006 - 2010)	65.15%	18.35%
Forecast Inflation (2006 – 2010 av. % pa.)	4.53%	2.04%
GDP/Capita (change 2006 - 2010)	54.02%	35%

Summary of why to invest in Bulgaria

EU membership likely in 2007-9.
Popular summer/winter holiday destination.
Significantly cheaper property then developed European comparables.
Encouraging macro economic backdrop.
Over supply concerns increasing.
Regulatory framework and lower market transparency.
Concerns over corruption.

For further information about investing in property in Bulgaria, please contact our sales team on 020 7763 7170