The Bulgarian Property Market
The Republic of Bulgaria
Bulgaria is located in southeastern Europe. Situated in the
east-central portion of the Balkan Peninsula, bordering the
Black Sea. Covering an area of 42,823 square miles and is almost
rectangular in shape. Its position making it a natural crossroad
between Europe and Asia.
It became a communist country at the end of World War II but
communist domination ended in 1990. Bulgaria joined NATO in 2004
and is set to join the European Union on January 1, 2007.
Foreign Interest in Bulgarian Property
Foreigners, especially the British, have shown a special
interest in Bulgarian property. There are two main reasons for
this ever increasing interest. The first reason is the country's
climate and natural surroundings. The second reason is more
obviously, the low cost of living in comparison to Western
Europe.
Overseas buyers can generally be classified into three groups:
those looking to purchase a second or permanent home; those
looking for a holiday home with the option of renting it out
(buy to let); and those purchasing for purely business purposes
for renovate and resell (speculative purchase). Purchase trends
show that most buyers are interested in Bulgarian property for
sale in the rural areas or apartments situated in popular beach
or mountain resorts.
The Bulgarian Property Market
Bulgarian property is extremely good value and foreign investors
may stand to profit substantially. In recent years, foreign
capital has been a major component in the Bulgarian real estate
boom. Although there are admittedly other factors causing the
boom such as the low interest rates, the continuous and
intensifying flow of capital deserves the bulk of the credit.
The interest in property in Bulgaria is steadily increasing and
is expected to further increase as the impending acceptance of
Bulgaria in the European Economic Community draws near.
According to a Wall Street Journal report, Bulgaria registered
the highest rise in its real estate prices (more than in any
other country) with a staggering jump of 48 percent.
Property developers believe that the peak is yet to come as
there are still many undiscovered places of beauty in Bulgaria
as well as untouched property ready to make it's first entrance
into the property market. Buying Bulgarian PropertyCertain
constitutional restrictions on foreign investment in Bulgarian
property presented some impediments for inward investment. The
Bulgarian Property Law was amended in July 2000 which removed
such restrictions. The only requirement left was the
registration of the investor or investing company in Bulgaria.
Essentially, the process of purchasing a property in Bulgaria
necessitates the incorporation of a limited company which can be
set up through a solicitor.
There is a requirement to own the land on which the property is
situated, before it can be purchased by a foreign national.
Property checks can be done by a reputable Bulgarian solicitor.
The buyer will receive an initial contract of sale which would
require a deposit and the contract of purchase should then be
signed before a Bulgarian notary. An independent translator must
be provided by the buyer for this transaction.
Notwithstanding tales of complicated legal battles and claims
of long-lost relatives as highlighted in the UK media,
developers are quick to defend Bulgaria as having very strict
land registry laws thereby making chances of such claims very
rare. Potential buyers of homes in Bulgaria are encouraged to at
least visit the country first and make the final decision
themselves. A checklist of possible pitfalls is provided by the
developers to ensure complete satisfaction on the property
purchased.
In conclusion Bulgaria is proving to be the hotspot for
European property and it is advised to make your moves while the
prices attract. If you do so you will certainly realise how wise
your investment will have been.