Why Buy Property in Bulgaria

There are many reasons why buying in Bulgaria is a good idea. Here are just a few:

• Bulgaria is a beautiful country, with unspoilt countryside and predictable climatic seasons (unlike the UK!)
• It is a relatively cheap country in which to both holiday and live.
• The people are extremely friendly and in most places there is a real sense of community spirit.
• Economically, Bulgaria is set to grow rapidly, with its recent entry into the EU (£27 billion of EU funds to be spent on the infrastructure) and through the influx of foreign tourists and investors. (5 million tourists visited Bulgaria last year!)
• 400,000 Western Europeans have chosen Bulgaria for their second home!
• Property prices are still much cheaper than the rest of Europe, even though average property prices have been making gains between 20-30% annually, year on year.
• Elsewhere EU accession has seen property prices increase by as much as 300% over a protracted period!!
• Building and labour costs are still relatively cheap when compared to the rest of Europe.

But making a sound financial investment isn't the only reason to buy a property in Bulgaria. Bulgaria is a fascinating country! Like the grapes of its many vineyards -Bulgaria is ripe for the picking! Having just recently become a member of the European Union (EU), Bulgaria will undoubtedly become one of Europe's most treasured countries. Indeed, other European countries have a lot to worry about, not the influx of migrants, but purely what Bulgaria has to offer the rest of Europe and the world! Take for example Bulgaria's vineyards and flourishing wine industry. Historians believe Bulgaria to be the cradle of wine production, with records indicating that wine was first produced in Bulgaria 6000 years ago! In recent times, its wine has received plaudits from some of the world's most respected wine institutions - watch out France and Germany!

Not only does Bulgaria offer great wine (indeed its pilsner beer is attracting attention not only from the many tourists that drink it, but large German breweries who want a piece of the action!), but a plethora of tourist attractions too long to even list. Some of these attractions include:

• World class ski resorts (Bansko, Borovets,Pomporovo and Vitoshi)
• Mountain sports and pass-times that include: Mountain biking, white water rafting, hill walking, nature trails (tracking the indigenous populations of wolves and black bears!) and even hunting of wild boar!
• City breaks (Sofia, Varna, Burgas and Veliko Tarnovo)
• Historical attractions (Pomorie, Nessebar, the mediaeval capital of Veliko Tarnova, the Troyan and Rila monastaries)
• The fantastic white beaches and crystal clear waters of the Black Sea Coast.
• The Mediterranean climate that exists along the southern Black Sea coast. Average temperatures from May to September of 27° C and average water temperatures of 25°C!
• The Scuba diving (there are 3 PADI SCUBA Diving clubs in Sunny Beach!) and the Surfing at Lozenets! Including a whole range of water sports.
• Yachting (ST. Vlas now boasts one of the largest and most modern Marinas on the Black Sea!!)
• Fishing - the fishing in Bulgaria (whether fresh water or sea fishing) is some of the best in Europe!
• Golf - Golf courses are springing up all over Bulgaria. There are golf courses being built by professional Golf Course designers all along the Black Sea Coast (Ian Woosnam and major Spanish Golf Course designers to name but a few!). Indeed there will be a major golf course within a short travelling distance of all our projects.

Common Misconceptions & Concerns When Considering Investing in Bulgaria

Over the time I have been involved with the Property Market in Bulgaria, I have encountered a number of common misconceptions & concerns about Bulgaria.

Bulgaria is already over-developed

The simple answer to this is, look at Spain! Spain has very little coastline remaining that hasn't been developed, yet people are still buying there! (even though the property market has seen decreases in resale values as high as 12% in some areas!) Of the 378Km of Bulgarian coastline only about 30 Km in total is developed (this includes all of the resorts and the smaller developments dotted along the coast). It will take at least 10 years to develop. But even then, not all of it can be developed. There are strict building regulations that prohibit building in certain areas. St.Vlas has hundreds of acres of National Park that can NEVER be built on!

I’ve missed the boat with Bulgaria

This is complete nonsense! Bulgaria only joined the EU in January, so 2007 and beyond will see the biggest changes in Bulgaria's history. This will be reflected in the property market. There are a number of sound reasons for this.

• Firstly, there is now financial transparency so the economy will grow exponentially!
• Building construction now has to comply with strict EU standards, giving confidence to those investing in property and driving the prices up (partly due to market forces and partly because building costs will be driven up!).
• Bulgaria now has to conform to Health & Safety regulations. Again, this will have a direct influence on building standards again providing confidence in the product.

The country is now attracting huge investment, not only from the EU purse (29 Billion Euros over the next 5 years), but from private investors. Anybody who is anybody within the investment sector is investing in Bulgaria! - People who know about making money!!! Once the infrastructure and investment is fully in place the cost of property in Bulgaria has the potential to attain parity with the rest of Europe! This process will probably take 5 - 10 years, so invest now! If you wait until then, you WILL have missed the boat!

Bulgaria has a short season

Short when compared to whom? If we make a direct comparison with Spain, then Bulgaria's season is marginally shorter (about 1 month, either end of the summer), but compared to other European countries it fares very well! The season runs from May all the way through until the end of September (but can run into October!). The average air temperatures reach 28º C (reaching into the 40's occasionally!) and the sea temperature averaging 27º C, but can reach 29º C! But let’s be honest, Bulgaria has more to offer than its fabulous coastline and beaches - what about skiing, Alpine sports, hill walking etc...

Bulgaria is too behind the times

We now have one of the most modern marinas in the World in St.Vlas! If you don't believe me come and see it! The moorings can have cable TV, internet, hot and cold running fresh water! The information centre provides hourly Met reports, which can be wired direct to your Yacht/boat. Not to mention the facilities that border the Marina (cafes, bars, night club, restaurants, boutiques, PADI diving club, Health Spas, tourist information centre, gym ...)

• The EU is spending 5 billion Euros on roads over the next 2 years! Bulgaria will have one of the most up to date road networks in Europe when it is completed!
• When you drive into a petrol station here your fuel is put in for you and your car washed for free! This is considered part of the service! When you decide to venture out of your car to use the facilities you will be greeted by clean and sweet smelling toilets - unlike the UK! All modern petrol stations have cafes and shops.
• Broadband internet is readily available in most locations and the network is getter bigger all the time!

Yes, there are still a few things that are behind the times and the infrastructure as you venture in-land needs some work, but give them a chance! 5 years down the road and this country will be unrecognisable! The people are not only smart, but hard working; they will turn this country round now they have a chance!

The rental market doesn’t exist

Give the place a chance! I have no doubt that Bulgaria's economy, and tourism is going to go mad over the next few years, as things have been growing steadily during the time I've been coming here (4 years) with foreign tourism now reaching 5.6 million visitors each year!. This country has so much to offer, but unfortunately Bulgaria as a country isn't marketing itself! It isn't until people actually visit the country that they have their eyes opened to Bulgaria's natural beauty and the great potential that it has!

My advice is invest for the future! Property prices in Bulgaria are still lower than anywhere else in Europe. Buy now and you will have a grin from ear to ear in 5 years time! If you don't want to have the worry of property maintenance, but don't want to miss the boat, then invest in land. Land is a limited commodity; buying land beyond established developments will pay dividends a few years down the line! To give you an example of how land prices have increased in Bulgaria, 10 years ago you could have bought land in St.Vlas for 30 pence a Square Meter and now your looking at £100 -200 per Square meter! If you had bought a 1000 sqm plot 10 years ago it would have cost you £300, now it would cost you £100,000 to £200,000!! But, 10 years ago, St.Vlas didn't have any infrastructure and no Marina! To put it simply, you have to be looking for the next developmental areas!

Bulgaria is corrupt

Yes, there has been corruption in Bulgaria and a certain amount still exists - but not for long! The country can't afford to allow corruption to continue because it will cost billions. Without firm action on corruption the EU will not release funds! Bulgaria needs that money and is doing it's utmost to legitimise everything. There is now transparency in business and companies cannot operate without having their books audited - no more tax evasion! All areas of company operation are being scrutinised.

In addition to the governments own levels of investigation and regulation, individuals have a vested interest in becoming legitimate. Firstly, they can advertise this fact and entice foreign investors! Secondly, there are now funds available from the EU for investment in legitimate programs of reform and infrastructure, so why be corrupt? There is a genuine incentive to avoid corruption and become legitimate.

Having read this I hope I have managed to dispel some of the misconceptions and concerns you may have or have heard from others. People who make money in real estate are those that see past the initial risk and recognise the potential! Those who play it safe on the side-lines will always remain on the side-line and will spend their life regretting not having invested in ‘That emerging market’ years ago when it was so cheap