Bulgaria Property Investments
With prices like £23,700 for a 3 bed detached house with sea views, there's no wonder that Bulgaria is becoming a very popular country to buy property.
Property Prices
The average 2003 increase of Bulgarian real estate prices is between 24% and 28%. The expectations appear to be slowing down the tendency and keeping a moderate, but systematic pace of increase until 2007, the tentative year scheduled for Bulgaria to join the European Union
Investing in the Black Sea Coast
The market in Black Sea coastal real estate in Bulgaria has grown significantly since the beginning of the year 2003. Sales prices of brand new residential properties have doubled in some areas compared to 2002. Sea front real estate was on average 30% more expensive than water view locations.
Plots of land were also attractive for investment purposes. In 2003 their prices had increased more than 30% on average compared to year 2002. Some beachfront parcels for development of leisure properties had reached EUR35/sq.m. compared to similar properties sold at USD 15 sq.m. in 2002. In certain areas close to leading resorts like Albena, Golden Sands, Sunny Beach and others, prices had increased more than twice for the previous year and varied between €35-55 /sq.m
Investing in Sofia
Properties in Sofia are undergoing the highest rate of price increase in Europe (including Eastern Europe). Sofia was and still is the cheapest capital in Eastern Europe for property - though this is changing fast. For example the prices of apartments increased 40% last year. Latest forecasts are that prices will probably increase another 40% this year, another 40% in 2005 with more moderate growth of 30%-40% for 2006 and thereafter the process will continue with more moderate increases year-on-year.
Off Plan vs Resale
Typically, as in all countries, off-plan developments (rather than second hand or completed apartments) offer the best opportunity for rapid capital increases since even without the increase in the property market generally in Sofia prices will have risen at least 20% by the time a development is completed. Being new and well finished, these developments are also the easiest to rent out.
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