information - Bulgaria
Situated in Southeastern Europe,
occupies the northeastern part of the Balkan Peninsula. The country’s total
territory is 111,000 sq. km. It has a 378 km borderline with the Black Sea to
neighbors Macedonia and Serbia and Montenegro to the west, Romania to the north
and Greece and Turkey to the south.
Today, reforms and democratization keep Bulgaria on a path toward eventual
integration into the EU. The country joined NATO in 2004.
From January to September 2005, more than 6.1 million foreigners visited
Bulgaria. This is six per cent higher than the same period last year, according
to National Statistical Institute data.
1997, macroeconomic stability was reinforced by the imposition of a fixed
exchange rate of the Bulgaria currency ( Lev) against the German D-mark and the
negotiation of an IMF standby agreement. Low inflation and steady progress
on structural reforms improved the business environment; Bulgaria has averaged
4% growth since 2000 and has begun to attract significant amounts of foreign
Political and economic stability
Sustained GDP growth of 4.7-4.9 % per year
NATO membership achieved in 2004
EU membership set for 1 January 2007
Very competitive labor cost compared to the rest of Europe
Very competitive tax regime - 15% corporate profit tax as of 1 January 2005
Well educated, highly trained English speaking workforce
Strategic geographic location
Full national treatment of foreign investment
The average property prices in the major Bulgarian cities experienced a 10% -
30% growth through 2005, according to the Bulgarian National Statistics
Institute. In 2004 some apartment prices registered almost 50% increase.
Some agents believe that the real increase may be much greater and is not
registered by official statistics because of the incentives of market
participants not to report the real transaction price. We can not validate this
However, it is fair to say that 2005 has been an exciting year for the Bulgarian
property market. It is expected that the transaction volume will top 250,000 for
2005 compared to 196,000 for the entirety of 2004.
is important to notice that not all parts of the country registered significant
increase but rather several big cities (biggest seacoast towns, the capital, 3 –
4 large places with dynamic growth and higher employment, as well as several
mountain resorts). The most important reasons for this increase are:
economic growth for the past 3 years – 4.5% on average
Improvement in bank mortgages - interest rates are falling, banks are competing
accession to the EU which will help stimulate property prices.
demand - specifically for new build summer apartments and cottages in the
of foreign direct investments.
environment – introduction of Law on Special Purpose Investment Vehicles (2003),
Law on Mortgage Bonds (2000) facilitated real property development and allowed
for bigger scale investments.
Bulgarian’s - Many are investing their money in real estates
Bulgaria is among the countries with highest home ownership rate. According to
official statistics approximately 91% of people own their place of residence.
Rental yields in cities across Eastern Europe have received a boost, with Sofia,
Bulgaria, where property prices average £25,000, seeing yields of
between seven and ten per cent per annum, and Prague, Czech Republic, where the
average property costs £39,000, seeing yields increase to between five and seven
per cent per annum.
"Ten years ago no one would consider investing in
Europe, but now property in the Eastern Bloc is selling faster than ever,"
comments Nick Clark, managing director of Homebuyer Events.
"Holidays in countries that have recently
joined the European Union are becoming increasingly popular so investors with a
long term perspective will secure solid rental yields."