Profit from the Bulgarian Property Investment Market - airline tickets header graphic

Profit from the Bulgarian Property Investment Market

I hope you're not! You may have noticed 17 years after the fall of communism Bulgaria has finally joined the European Union in January 2007.

You may be asking "So what?"

Well, first if you bought agriculture land before Bulgaria's accession, you'd better start getting your act together to get the land regulated. The process is getting stricter and more costly.

You'll also soon start noticing the price of Bulgarian land further increasing. Some European developer's are securing funds from European financial institutes for development projects.

If you decide to invest in Bulgaria, consider investing in land rather than apartments, as they don't make land any more.

Land Near The New Golf Course Complexes Is Highly Sought After.

Currently there are three new Golf Course Resorts being built near each other (45 km north of Varna). The resorts are in the early stages of development. Buying land now, near the resorts, offers fantastic opportunity to make huge profits especially once the resorts are completed.

The world's most renowned designers - Gary Player and WATG, are developing the Golf resorts.

The resorts will be well designed and built, with beautiful landscaping and infrastructure. Consequently, the land around them will increase DRAMATICALLY in value within the next few years. This is a fantastic combination of SAFE Bulgarian property investments with incredible CAPITAL GAINS.

Bear in mind that land around these areas are rising in value every month. (The price of land was around 12 euro per m2 a year ago, but now such land prices start from 25 per m2 and are continually rising).

If you compare this to land about 1 km from the sea in prime resorts, such as Sunny Beach, plots cost around 100 per m2. The land near the Golf resorts (similarly situated, at similar distance from the actual seafront) costs between 25 and 30; and will rise to possibly 60 to 80 within the next 2 years. This land value has an expected growth of at least 30% in the first year. It's still possible to get land there for about 25 per m2.

The first development "Black Sea Rama" has been under way for about a year. It's a massive development (one of the biggest developments currently under way in Bulgaria!). The whole area around it will increase in value once the project is finished.

Prices around there have already risen in value, but I expect them to be at least double in the next 2-3 years.

The second development - "Thracian Cliffs" started only a few months ago, therefore, land around there is still very much under-priced. Soon land in the vicinity of that complex will rise exponentially in value, as was the case around Black Sea Rama (the first development above) last year.

Land Near Plovdiv.

Plovdiv is the second largest town in Bulgaria. There is an international airport, which services tourists for the ski resort of Pamporovo (about 45-50 miles from Plovdiv). Plovdiv is situated in the outskirts of the Rhodopi Mountains, which Pamporovo resort is nestled in.

The plots of land are in the outskirts of the Rhodopi Mountain, in the southern outskirts of Plovdiv - near the village of Belashtitsa. That area will be developed as a "VIP residential zone" for the city of Plovdiv. There have been several articles in the local papers regarding building firms that are planning to start new residential developments in that area. Currently, several building firms have applied for building regulation of the land to commence construction. Also, just recently, two developments have already begun nearby. One of the developments is for a large number of houses, two hotels with swimming pools, tennis courts, etc. These are being developed for the local market (high-end). The area is in the outskirts of the mountains, which provides for peace, pure air, exclusivity and a 5 miles proximity to the city centre.

Currently land prices there are around 10 per m2.

This is another opportunity for you to keep your eye on!

Bulgaria will be allowing the United States to utilize several military bases in the country. This will give American forces a jumping-off point closer to potential hotspots in the Middle East.

While the plan is in its early stages, the infrastructure in the area surrounding the bases would be vastly enhanced by an American military presence. The funds that seem to accompany such a military installation couldn't hurt either.

Under the deal, U.S. troops would be able to use three Bulgarian military bases - the Novo Selo training area, the Bezmer air base in southeastern Bulgaria, as well as the Graf Ignatievo airfield (near Plovdiv) in central Bulgaria.

There is potential for capital growth of land and Bulgarian property investments around these areas. Properties here are inexpensive at the moment and could become desirable to outsiders when American forces do relocate troops to the area, thus greatly enhancing the local infrastructure.

Talking about infrastructure, have you seen the level of motorway Construction going on in parts of Bulgaria?

European funds are already pouring into the country's infrastructure, especially in regards to new road construction. You will notice evidence of this when you travel throughout Bulgaria. Large blue signs along the roadways will indicate that the road being traveled was built using EU funds.

The Bulgarian government is pushing for the completion of the motorway from Sofia to the Black Sea coast this summer. They have taken this project very seriously. Hopefully, if all goes well, planning a trip from Sofia to Varna should take no longer than 4 hours (this is effectively crossing Bulgaria from one side to the other).

Plans are also in place for a brand new motorway to run parallel to an existing road from Burgas to Varna, along the Black Sea coast.

Budget Airlines

Now that Bulgaria is part of the European Union, watch out for no-frills budget airlines. Airlines like Easy Jet, Flybe and Ryannair will be competing for business to fly to Bulgaria. Also, the good news is, at least now when you arrive at Sofia Airport you don't have to freeze to death when you're being transported from the aircraft to the buses waiting on the ground. They've got jetties now linking to the terminals. Plovdiv airport is also currently being updated for the ski tourists

Bulgarian Financial Market

Visit most Bulgarian families before 2006 and you'll notice all the family living together. However times are changing. As the economy grows the young generations are managing to secure a good job, which gives them a disposable income. The financial market has recognized this and started offering loans, credit cards and mortgages. These young Bulgarians are now able to secure mortgages and move out from the family home and live independently.

This has created local demand not only for apartments but modern houses along the outskirts of the main cities as well. Developers and investors are meeting this demand by buying land and then applying for planning permission for residential housing.

Remember, it's the availability of finance and disposable income that creates demand for Bulgaria property investments. And it all starts with land.

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