Bulgaria – an idyll for the investor
BULGARIA REMAINS ONE OF THE MOST POPULAR COUNTRIES AMONG UKRAINIAN AND RUSSIAN INVESTORS IN A LIVING REAL ESTATE. TO SUCH EXPRESSIVE PLUSES, AS A FAVORABLE GEOGRAPHICAL LOCATION IN THE HEART OF EUROPE.
Bulgaria remains one of the most popular countries among Ukrainian and Russian investors in residential real estate. A mild, sunny climate, hospitality of local residents and the absence of a language barrier, since 2007, added membership in the European Union and the prospect of joining the Schengen zone in the very near future.
Growth rates – the highest!
BULGARIA began to move steadily along the path of economic development since 1997, having entered a new millennium already strong and ready for big changes (not without considerable support from European investors). Like most countries in Eastern Europe, Bulgaria adopted a resolution on restitution in 1992.
The return of the nationalized property to the previous owners or their heirs took place in the country relatively quietly due to the small statute of limitations and safety of cadastral records of the previous owners. Restitution has become a significant incentive for mass buying up of inexpensive land, as well as the reconstruction of old hotels and the start of construction of new tourist complexes.
Making a bet on the development of tourism (for which the country has the most favorable conditions), BULGARIA today has come to relative macroeconomic stability with GDP growth of 4-5% per year from the chaos and confusion that swept most countries of the former socialist camp.
Experts note that the growth of PRICES FOR REAL ESTATE and land in resort towns and the capital of Bulgaria reaches 30-35%. It occupies a leading position in the January issue of the Global Residential Real Estate Price Index, which is provided quarterly by the international consulting company Knight Frank.
The growth rate of prices on the BULGARIAN RESIDENTIAL REAL ESTATE for the last quarter of 2007 amounted to 30.6%. The same indicator of the country in the period from the IV quarter of 2006 to the IV quarter of 2007 is equal to 33.7%.
The average price per square meter of apartments or houses in popular resorts in the country in 2006 started from 500 euros. In 2007, it began already from 900 euros, and in 2008 this figure reached 1,300 euros (Table 2). In the case of individual complexes, prices are rising simply exponentially. Many objects are being bought up at the project stage, and the rise in prices for them jumps to 80% per year!
In the next couple of years, prices will continue to grow, and there will be no trend to slow down this process. Based on the experience of other countries, prices should go up to the mark of 2 500-3 000 euros per square meter. m, and then the growth rate will more or less slow down, and prices will stabilize.
The price range depends on many factors: the geographical location of the resort, distance from the sea, the type and characteristics of the complex, etc. Sharp changes in value can be noted in the areas of large-scale foreign investment projects, such as sea and mountain resorts (seaside villages south of Bourgas, Bansko and Borovets ski resorts), as well as Sofia (airport area).
The highest percentage of buyers are customers from Russia. Arriving in Bulgaria in a group of several people, they acquire several objects at once. If the Ukrainian buyer is still rather wary of investing money in facilities under construction, then Russians quietly purchase them via the Internet, using the services of our company, signing contracts and leaving a deposit right at the exhibitions.
Quite a lot of objects are bought by citizens of Kazakhstan. People are not poor – they buy everywhere! Our compatriots, on the other hand, are quite interested, they buy often, but they ponder for a long time. However, if they make a purchase, then, as a rule, they are satisfied and subsequently return for a new purchase.
Golden Sands or Varna were and remained iconic resorts for those who remember holidays in BULGARIA before the perestroika times. Golden sands, stretching almost 20 km from Varna and at the same distance from the international airport, is the largest and most popular Black Sea resort in Bulgaria.
More than 70 hotels, 2 holiday villages and cottage houses are able to receive all the numerous tourists, because the total number of places in them is designed for forty thousand people.