Sound Investment in Bulgeria?

[fabian]

Welcome all,
I've been doing a bit of research on Bulgaria, exploring the possibility of buying an apartment on the Black sea coast, Sunny Beach. I'm looking to go out there sometime.
From what I have read, Bulgaria is a pretty sound investment, is this really the case? Is it the new Costa del sol?
Has anyone bought out there yet?
Cheers
Fabian

 

[gabriel]

Hi Fabian,
What exactly is it about Bulgaria that makes it a good investment?
Is there a vibrant economy? Is there an economy at all?
What?s the capital city? What?s the law regarding foreign ownership?
Why do people keep coming on here asking stupid questions about god-forsaken hell-holes in Transylvania?
Thanks
Gabriel

 

[gregory]

Hi Fabian,
I need to ask a simple question (I have a friend who has invested heavily in Bulgaria and keeps encouraging me to do so, but I can't work out why I should):
- Who has been to Bulgaria on holiday? Do people know anyone who has been to Bulgaria on holiday?
I don't know anyone who has decided to take their precious two weeks Summer holiday there, and I wouldn't dream of it myself (not being snobbish, just don't know anything about the country and plenty of other places to visit). So, why should I buy a holiday home to let to people who don't go there?
I know it sounds facetious, but I really would be happy to stand corrected if someone can prove to me there's a market there rather than pure speculation.
Thanks
Gregory

 

[eyeC]

if you buy you wont rent

you can use it as 2nd home

 

[thetravelbug]

There are many hundreds of thousands of tourists come to Bulgaria each year - for sun, for skiing, for walking, rural holidays, culture.....

Rachel

 

[John1210]

be careful with Bulgarian investment

I think people should be very careful if considering to invest in Bulgarian real estate, because:

1. Market prices have jumped tremendously over past several years and market crash can be close. I'd agree that short-term investment may still be interesting, but definitely not the long-term.

2. Properties have been built in thousands and supply can exceed demand very soon. Also there is quite large inventory of unsold properties especially in the resorts areas

3. Bulgarian beaches are not as beautiful as Spanish or Carribean and season is much shorter, so weathy tourists would definitely choose other destinations

Needless to say that right now almost everyone in Bulgaria is trying to make money on real-estate, so amount of speculations is huge.

 

[investor27]

From a pure investment point of view i would not reccomend Bulgaria, if you bought in 2003/2004 you did well, buying now is not a move i'd personally make, prices are too high & supply is exceeding demand, as for rental, Bulgaria only has a 4-5 month rental market, for investment you really need to be looking at a emerging market - Morocco is where people are currently investing, do some research & you will find this out for yourself .

If you want more information on Morocco & the new developments feel free to send us a PM & I shall assist.

 

[thetravelbug]

There are some true and false points made here. Yes supply exceeds demand and prices too high in places like Sunny Beach where over 30,000 (around 1/3 of new builds) apartments are for sale, rental is impossible and no resale. Similar in Bansko.

Never been to Caribbean but am sure beaches there are much nicer.

Developers keep building new apartments, not because demand is there but as they think they think can make a quick buck. A large investor/developer just pulled out of development on southern coast as no buyers.

Avoid anything with guaranteed rental as likely overpriced and rental just built into price.

Bulgaria is a long term market, money can be made in short term but would need to be investing in maybe land around golf and spa resorts say.

Rachel

 

[countyboy]

Bulgaria Market Drivers

Location:

• Thriving holiday resorts dot the coastline
• Within 30 mins from Varna, which is the most popular holiday destination for Bulgarians
• Within 40 mins from Varna International airport
• Situated in the heart of the Bulgarian winelands
• Strong rental incomes (£450 per week)
• Views over the ocean and the winelands.
• Economically, Varna is among the best-performing and fastest-growing Bulgarian cities; unemployment, at 2.34%, is 4 times lower, per capita income is higher than the national average (2007). Many Bulgarians regard Varna as a boom town

Logistics:

• Low cost flights with Easy jet to Sofia start in November
• British Airways, BMI and Bulgaria airlines fly direct to Varna
• Super highway has been approved to link Western Europe and Eastern Europe starting in Bulgaria. This will improve the trade routes linking Asia and Europe

Infrastructure:

• 2 Championship standard golf courses under construction in Balchik
• F1 race track planned for Kavarna
• Scottish company has recently bought out a luxury mall complex under construction in Varna
• Roads and rail links are currently being improved
• Quality of builders is now under scrutiny by the government

Economy:

• Strong growth in the economic sector fuelled by Foreign Direct Investment, construction, tourism and services industry.
• Major European companies moving Eastern European headquarters to Bulgaria (Tesco)
• Currency is aligned with the Euro
• Adopting the Euro in 2009
• Bulgaria controls land trade routes linking Asia and Europe (oil pipelines)
• FDI on the increase (53% increase from 2002-2003)
• Bulgaria’s annual economic growth is a healthy 6.5%
• The country boasts the second highest standard of living in Southeastern Europe in terms of GDP per capita.



Tourism:

• Low cost flights available to sofia with Easyjet
• Major airlines fly to 3 Bulgarian airports
• Increased tourism figures during summer on the black sea coast, both north and south
• Bulgaria now attracts close to 5 million visitors yearly. Tourism in Bulgaria makes a major contribution towards Bulgaria's annual economic growth of 6%-6.5%.
• Real estate is booming, with some of the highest prices in the nation, often surpassing Sofia.
• Good winter tourism figures in Sofia and Bansko (skiing)
• Lowest cost of living in Europe
• All major tour operators now operate in Bulgaria

Political Stability:

• Previously under Soviet and Ottaman rule but now a member of the EU with a democratically elected government
• Bulgaria has been a member of Nato since 2004 and the UN since 1955.

Factors:

• Good summer season with high temps above 30 degrees centigrade
• Plenty of local attractions
• Long sandy beaches
• Local and international cuisine
• Unspoilt countryside
• Low cost of living
• No CGT on 1st property
• Strong growth in the property sector

 

[Jain and Chris]

This is really interesting and we agree and disagree from an indepdent perspective (please don't take the caps lock as shouting, I just can't work how to do anything else to work out the difference between q and a)

Location:

• Thriving holiday resorts dot the coastline
YES THEY DO
• Within 30 mins from Varna, which is the most popular holiday destination for Bulgarians
NOT THE MOST POPULAR DESTINATION FOR BULGARIANS, BUT ANYWHERE ALONG THE BLACK SEA COAST WILL DO
• Within 40 mins from Varna International airport
NO SO FOR NEXT YEAR, BOURGAS WILL HAVE MORE CHARTER FLIGHTS WITH HOLIDAY MAKERS LOOKING FOR "CHEAP HOLS" IN 2008
• Situated in the heart of the Bulgarian winelands
??????????
• Strong rental incomes (£450 per week)
DEPENDS UPON THE PROPERTY
• Views over the ocean and the winelands.
????
• Economically, Varna is among the best-performing and fastest-growing Bulgarian cities; unemployment, at 2.34%, is 4 times lower, per capita income is higher than the national average (2007). Many Bulgarians regard Varna as a boom town
IT IS CERTAINLY THE MOST "WESTERN EUROPEAN STYLE" CITY I'VE EVER EXPERIENCED IN BG

Logistics:

• Low cost flights with Easy jet to Sofia start in November
LOW COST CHARTERS ARE PULLING OUT; HOWEVER, THIS IS THE CHANCE FOR VARNA TO ESTABLISH ITSELF AS AN UPMARKET DESTINATION
• British Airways, BMI and Bulgaria airlines fly direct to Varna
• Super highway has been approved to link Western Europe and Eastern Europe starting in Bulgaria. This will improve the trade routes linking Asia and Europe

Infrastructure:

• 2 Championship standard golf courses under construction in Balchik
MORE
• F1 race track planned for Kavarna
TALK ABOUT THIS FOR YEARS - I AM A BIG F1 FAN, AND NOBODY KNOWS ABOUT THIS RUMOUR
• Scottish company has recently bought out a luxury mall complex under construction in Varna
• Roads and rail links are currently being improved
• Quality of builders is now under scrutiny by the government
IT IS MORE IMPORTANTLY UNDER SCRUTINY BY THE EU!

Economy:

• Strong growth in the economic sector fuelled by Foreign Direct Investment, construction, tourism and services industry.
• Major European companies moving Eastern European headquarters to Bulgaria (Tesco)
• Currency is aligned with the Euro
• Adopting the Euro in 2009
MAYBE 2010 OR 2011
• Bulgaria controls land trade routes linking Asia and Europe (oil pipelines)
• FDI on the increase (53% increase from 2002-2003)
• Bulgaria’s annual economic growth is a healthy 6.5%
• The country boasts the second highest standard of living in Southeastern Europe in terms of GDP per capita.



Tourism:

• Low cost flights available to sofia with Easyjet
• Major airlines fly to 3 Bulgarian airports
• Increased tourism figures during summer on the black sea coast, both north and south
• Bulgaria now attracts close to 5 million visitors yearly. Tourism in Bulgaria makes a major contribution towards Bulgaria's annual economic growth of 6%-6.5%.
• Real estate is booming, with some of the highest prices in the nation, often surpassing Sofia.
• Good winter tourism figures in Sofia and Bansko (skiing)
• Lowest cost of living in Europe
NOT SINCE THE TAXIS PUT UP THEIR FARES 25% TODAY - LOL
• All major tour operators now operate in Bulgaria
SOME ARE PULLING OUT

Political Stability:

• Previously under Soviet and Ottaman rule but now a member of the EU with a democratically elected government
• Bulgaria has been a member of Nato since 2004 and the UN since 1955.

Factors:

• Good summer season with high temps above 30 degrees centigrade
COLD WINTERS TOO - BUT GOOD FOR THE SKI ENTHUSIASTS
• Plenty of local attractions
BUT IN POOR STATE, NOT SO MUCH AN ATTRACTION AS MORE A "NATURAL" THING
• Long sandy beaches
• Local and international cuisine
NOT REALLY, LOCAL CUISINE IS GOOD BUT INTERNATIONAL CUISINE IS REALLY POOR
• Unspoilt countryside
DROP DEAD GORGEOUS
• Low cost of living
• No CGT on 1st property
DEPENDS UPON HOW YOU BOUGHT IT; AND ALWAYS REMEMBER IN THE UK THERE IS CGT TO PAY ON YOUR SECOND PROPERTY NOT MATTER THE CGT SITUATION IN THE COUNTRY OF THE PROPERTY
• Strong growth in the property sector


OVERALL, I THINK YOU ARE PUTTING BULGARIA IN A VERY POSITIVE LIGHT, WHICH I AGREE WITH, BUT FOR LONG TERM GAIN.

It is oversimplified to state these kind of unsupported quotes.

We believe Bulgaria to be a great placed to buy - you will gain on capital appreciation and rentals, but BE REALISTIC

Hey ho, that's my two stotinki worth........

 

[countyboy]

thanks for the update

Hi Jane thanks for the feedback on those market drivers. Overall still quite accurate this is what I would look at to make an informed decision on weather it is a good area to invest or not.
I look at these drivers no matter what country i am looking at.
Thanks for the update on some of those points

 

[KICIta_]

Even after all the negatives that have been in the press recently, I still do believe that Bulgaria is a sound investment. People need to do their research and due dilligence, go on an inspection trip and appoint a solicitor. Even though there are many areas that are over supplied there are also plenty of resorts around all the major tourist destinations that offer the ability to relax but at the same time be close enough to the action. Developers and agents that are still doing well are those that are going that extra mile for their clients rather than push them into a quick sale.

I am also very happily suprised that Bulgaria is not going to get hit by the credit cruch and the subprime market crises in both USA & UK. I guess the main reason is for the diversification of investors in Bulgaria from Western Europe and Russia.

Does anyone remember various reports in the english press a few months ago that Russians in London are pushing up prices? Guess the same is going to happen in Bulgaria too

If I can be of any further help re agents & bulgaria etc let me know

 

[john11]

Borovets

Jain

Your responses to the investment drivers were very useful. I was particularly interested in the fact that some low-cost airlines are pulling out of flights to Sofia (before they've even begun, I guess). As potential investors in Borovets, this is a little worrying. Do you have any information on why Easyjet are not going forward with flights to Sofia. From all accounts Borovets seems to be the subject of substantial investment and development.

Also your comments about tour operators pulling out.

Thanks
Lynne and John

 

[KICIta_]

Easy jet is still going ahead with their flights, I even have a friend of mine that booked the other day for a Sofia flight...go to their website and check on the flights

From the comments above, i guess it refers to flights to Varna Airport.. that might prove too expensive to run as low-coast as it is not as well established destination as Greece for example...

Hope that helps.

I managed to get my last flight for £110 return which i guess is really cheap!

Jain

Your responses to the investment drivers were very useful. I was particularly interested in the fact that some low-cost airlines are pulling out of flights to Sofia (before they've even begun, I guess). As potential investors in Borovets, this is a little worrying. Do you have any information on why Easyjet are not going forward with flights to Sofia. From all accounts Borovets seems to be the subject of substantial investment and development.

Also your comments about tour operators pulling out.

Thanks
Lynne and John

 

[tzvetanka mcfadden]

Poor Fabian, he is sorry that he asked the question. Bulgaria has a history for over 1300 yrs, so for the person mentioning Tasania's holes I think that he is very angry little man. Bulgaria is very old country with great respect from people who knows a bit more about history of Europe, with it's own language. Christian country with no strange laws, double taxation agreemants and protected investments. So please stop talking about the Country and speak only if you have anything to say to the person asked a simple question.

 

[tzvetanka mcfadden]

Fabian yes if you have a bit of money do invest in Bulgaria, you can check statistics about the turism in Bulgaria on bulgariatravel.org for over 4 000 000 turists visited Bulgaria this year and you can make up your mind, but do not overstretch. Spend as much as you can afford and don't be gready.

 

[Jain and Chris]

Hello KICita, yes good price. Also I heard from a reader yesterday who had booked flights with Bulgaria Air from north of England to Sofia - 150 pounds return. Actually, I've noticed recently that often the regular airlines work out cheaper than the low cost airlines ! Plus, of course, their flights are usually direct.

Germanwings have also announced cheap flights from London to Sofia (via Cologne),60 euros one way including airport taxes and charges, starting this winter season.

Wizz Air are going to do Sofia - Varna internal flights starting July next year - with a 9.99 euro one way ticket.



Cheers,