Bulgarian Property Market
Eastern Europe is currently the focus of investment-driven buyers with its spread of markets from the Baltic to the Black Sea. Over the past year, Bulgaria has become the new hotspot for prospective holiday home buyers who can't afford the inflated prices of Spain, France and Italy.
The majority of people who are buying property in Bulgaria are looking for holiday homes (second homes) often with a view to retirement in later years although there are an increasing number of investors who are simply buying property with a view to making a capital gain in a short or long term.
The majority of people who are buying property in Bulgaria are looking for holiday homes (second homes) often with a view to retirement in later years although there are an increasing number of investors who are simply buying property with a view to making a capital gain in a short or long term.
The Bulgarian property market currently offers good investment potential considering the long-term prospects for the country. The market is still in its early days and it is likely that further attractive gains will be made leading up to the accession of Bulgaria into the EU in 2007 and also at a more moderate pace following as the infrastructure of the country slowly improves.
The steady rise in demand will continue over the next two to five years. One reason for this is the rise in popularity of mortgages, something virtually unknown in Bulgaria until recently. Now, however, almost all banks and many local lending institutions are offering mortgage products to the local population, allowing them to own their own homes.
It is currently possible to achieve high rental yields on property - Rental yields on residential property are currently in the range of 10 to 12% of the purchase cost. More than 16% yields may be obtainable for commercial and industrial property.
The steady rise in demand will continue over the next two to five years. One reason for this is the rise in popularity of mortgages, something virtually unknown in Bulgaria until recently. Now, however, almost all banks and many local lending institutions are offering mortgage products to the local population, allowing them to own their own homes.
It is currently possible to achieve high rental yields on property - Rental yields on residential property are currently in the range of 10 to 12% of the purchase cost. More than 16% yields may be obtainable for commercial and industrial property.
