Why Invest in Bulgaria ?

Investment Opportunity 

The property market in Bulgaria is currently booming with record property sales registered in recent years. The number of apartments in Bulgaria's Black Sea Resorts has increased by up to 25% in 2004. With the widely anticipated acceptance into the European Union in 2007 there has never been a better time to invest in Bulgaria. Property prices are expected will continue to increase by up to 25% before Bulgaria is accepted into the EU in 2007.

Bulgaria is one of the fastest growing tourist destinations in Europe, with a well established tourism industry. Four million tourist are expected to visit Bulgaria in 2005 and as tourism continues to grow, rental opportunities for the right properties are high.

Bulgaria's Economic Status

Political and economic stability 

The currency is stable and linked to the Euro.

NATO membership achieved in 2004 

Rapid economic growth ahead of EU membership 

EU membership set for 1 January 2007 

Very competitive tax regime - 15% corporate profit tax as of 1 January 2005 

Full national treatment of foreign investment

Tourist Destinations

Low cost of living offering best value for money holidays 

Easy access from Europe

Direct flights available from the UK ( 2.5 hour duration ) 

Annual growth of tourist arrivals for 2002 – 2004 43% 

Steadly increasing number of British tourists 

Budget airlines expected to start servicing the Black Sea coast 2007 / 2008 

Demand expected to rise by 22% due to low cost air travel

Well developed and constantly improving summer resorts 

Established and fast growing tourist industry 

Real Estate Sector

Bulgaria is currently targeted for European investment funds. 

There has been a dramatic increase in demand for quality accommodation at all resorts to suit European tastes and expectations. 

Property prices are rising but are still below other comparable countries.

Up to 20% price growth over the last 12 months 

It is possible to take advantage of extremely lucrative investment opportunities.

There are many “Off-plan" developments available offering even better investment opportunities. Purchasers can even re-sell properties bought of plan before they are completed, with some buyers reserving as many apartments as they wish paying only a fraction of the full purchase price and selling them on for a profit before the construction is complete.

With “off plan” purchases as the building work progresses, apartment prices will increase and hence so will the value of the initial purchase. A good return can be seen from the “Off Plan” stage to "Completion".

Buying Off Plan

Buying an “off plan” apartment in Bulgaria is essentially the same as buying in the UK and means reserving a property on a new development before the property is completed, often before construction has started. Buying “off-plan” can prove a fantastic investment and prices are extremely competitive at this early stage as potential investors only have floor plans and artist impressions of the finished development to view and developers are keen to sell to minimise risk and to provide the project with some forward momentum.

The owner has the option of selling straight away upon completion, or holding on to the property for further rental / capital growth whilst having a great holiday destination to visit. With Bulgaria’s expected accession to the EU in 2007 when considerable appreciation is expected especially in resort areas holding on to the apartments could be a good option.

This document is to be used as a guide only, please contact enquiries@charanjo.co.uk for any queries