Bulgaria’s property market is still strong

23 May 2007

Since joining the European Union, Bulgaria has continued to prove a worthwhile investment, prices raised an average of 9% over the first three months of the year and demand for property all over the country is still high say Principal International.

With virtually 30% of all property sales going to foreign nationals, investor’s interest continues to grow as it still offers a cheaper alternative than other parts of Europe says Principal International. With a sharp rise in levels of tourism throughout the winter months and the summer months sustaining continued bookings, the demand for rental accommodation is becoming as high as in the summer months as more and more resorts develop.

Simon Ryeland of Principal International says that with in excess of 2 million visitors expected to arrive in Bulgaria in 2007, there is still plenty of opportunity to achieve favourable rental yields. The prices of apartments in Bulgaria are still remarkably cheap, Principal International offers studio apartments from as little as 30,000 Euros on the favoured Sunny Beach resorts and 1 bedroom apartments in the popular ski resort of Bansko from 59,995 Euros.

Research shows that holidaymakers are increasingly looking for spa resort holidays to unwind and the numbers of us seeking to do so is expected to rise by 75% over the next 3 to 4 years. The mountainous areas of Bulgaria offer natural resources to compliment these newly built facilities, and with more and more airlines flying direct to its airports, Bulgaria offers a great alternative Mediterranean destination.

With over 250 miles of coastline and the major transformation that Bulgaria has undergone it is expected to attract at last 5% more tourist’s year on year. This is good news for investors as rental yields can be as high as 7% in the summer. With prices slowly moving up to match other parts of Europe, investors are urged not to discount it.