Bulgaria is a country
which has been successful in achieving a consistent economic growth in the past
few years. Despite economic and political changes it has undergone, it is
slated to become a member of the European Union which will enable to stabilize
the currency and look forward to a better conducive environment for economic
growth. This reason itself has caused the foreign direct investment to grow
exponentially in the past few years, crossing the $2bn mark in 2004. This
foreign direct investment has leapfrogged the Gross Domestic Product which
makes it very clear that Destination Bulgaria is emerging and any investment in
immovable properties would only appreciate in the near future and highly
probable that it would do so in the long run.
The property prices
have increased by as much as 25% in the past year, which implies that rents
also are on the upswing. Big investors and holiday corporate companies are invest
more and more, since the rental income would increase substantially. Small
investors are already making a fast buck of about 40-50% appreciation on the
property they own, by offering resale of complete/ semi-complete developments.
Furthering this boom,
the Bulgarian government is working on a legislation to enable freehold
ownership of land and property by foreigners. This step is being taken looking
at the trend of construction quality and development and success of pioneer
investors in the recent past.
Compared to other
nations of Europe, the development costs in Bulgaria with respect to labor,
land, taxes, utilizes etc. are cheaper. As a result of which, a supply void
could be created to hike prices and gains. As more and more multi national
companies are entering Bulgaria, the job
market is looking up and so is the demand for rental houses and apartments.
The property
acquiring process in Bulgaria is simple,
since foreigners acquiring properties in Bulgaria was not
allowed and is changing.
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