Bulgaria Property:
Is the Market Hyped?

Unveiling the truth about the Bulgaria property market

In January 2007, Bulgaria joined the European Union as the new kid on the block, alongside its neighbour, Romania.

You've probably heard a lot about this country in the press and at the hundreds of Bulgaria property exhibitions you’ve recently visited all over the UK.

One minute you hear how great the country is for investment. But then the next minute you read a Sunday Times article warning you to keep away from the place.

Confused?

Well, I don’t blame you!

The Bulgaria overseas property market, particularly near the resorts, is hyped by aggressive real estate agents who receive high commissions.

This is a widely known fact among the locals!

I’ve been involved in the Bulgarian property market since 2002. Since that time, one of the things I’ve noticed is the unbelievable increase in real estate agents’ commissions. They have gone up from 5% to nearly 15%!

Does that ring alarm bells for you? It certainly does for me!

Why the heck are developers paying Bulgaria property agents 15% commissions?

The simple reason is that there are too many developers trying to sell off plans to a limited number of buyers.

Basically, there is a glut of apartments in the beach and ski resort areas and not enough demand.

Bulgaria is an absolutely beautiful country. There is no doubt about it. The Bulgarian people are also quite friendly. However, this is a very poor country. Bulgaria’s per capita income is roughly one-third that of the EU’s average.

If you travel around Bulgaria,, you’ll notice that most of the buildings are at or near the end of their useful life spans. To be honest, the entire country’s infrastructure needs to be knocked down and rebuilt again.

Only a few years ago, Bulgaria was a corrupt communist country. The government owned the Bulgaria property market. Since the fall of communism in the late 1990s, Bulgaria’s market economy has been growing steadily. In January 2007, Bulgaria joined the European Union. As long as Bulgaria fulfils its obligations to tackle corruption and prostitution, the EU will fulfil its promise to pump billions into the country. The much-needed capital will help rebuild the nation’s infrastructure and boost the economy, as seen in the eight CEE countries that previously joined the EU in 2004.

Ever since the fall of communism, the Bulgarian people have become wealthier. GDP is steadily increasing each year. This has resulted in new job creation, and more jobs mean more disposable income.

The national currency, the Lev, is pegged to the Euro. The financial industry has smelled the money in Bulgaria, so it has slowly begun penetrating the Bulgaria property market by offering credit. People are now taking out loans and mortgages, and buying cars and consumer goods. All of this has created demand for property.

In my view, the best investment is in land in the outskirts of the city centres. I know, for example, that in Plovdiv a lot of land is earmarked for constructing modern homes for the burgeoning middle-class white collar workers.

I've always held the view that land is the best investment in Bulgaria. Without land, there is no property. Everything begins with the land, and they’re not making any more of it.

Check out the clip below to see how a typical deal for a plot of land in Bulgaria goes.

Seriously, that's how a typical deal for land goes. Okay, let's move on and look at the four areas which are popular for purchasing Bulgaria property:

• The Black Sea Coast
• The Ski Regions
• The Village Regions
• The City Centre

Let’s look at these locations quickly below, one at a time.

Return from Bulgaria Property to Home Page

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» Where Can You Find The Best Bulgarian Property? New!
A new emerging investment property market Bulgaria. How do you find the best Bulgarian Property?

» Where to Find the Best Bulgaria Property Information New!
You've heard about the opportunities in Eastern Europe for investing but first you need to find some decent Bulgaria property information. I can tell you all you need to know.

» Why Buy Property in Bulgaria? New!
There are some great destinations around the world where you can buy affordable properties, so why buy property in Bulgaria? What’s so great about this former eastern Bloc country?

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