It is hard to argue with the returns investors in Bulgarian real estate have been receiving recently. The booming market is not concentrated just in the resort towns - I've been looking into some prime cave property in the Rhodope myself! There are also great investment opportunities in Sofia.
Blaine Stansel, USA
The value of an investment can only be measured when divested. Historically, and at face value, Bulgarian property would appear to be a good investment. However, the feeding-frenzy for cheap, poor-quality accommodation has been well documented and resulted in an oversupply of some 30,000 units on the Black Sea coast alone. Quality and luxury are very subjective, but are now somewhere on the Bulgarian radar. The price of regulated land has increased rapidly in the last 12 months with the cost of construction not too far behind. The answer to the question is not simple, but for the canny investor location, quality and amenity remain paramount.
Simon Feek, UK
Most definitely, especially if you are seeking a long term investment as indicators show that Bulgarian property prices have steadily increased year on year for the past several years. In fact Bulgaria was named as the world's strongest property price riser for 2007 with an average 27 percent increase. Predictions forecast that it is expected to keep up its momentum over the next two years. However, I feel that people who bought several properties prior to Bulgaria's EU entry, hoping to make a quick killing once membership was established, have come unstuck; especially with investments in developed locations on the coast and in some ski resorts. My advice is if you want to invest in Bulgaria, make it a long term commitment as the returns will be much greater.
Roger Turner, UK
My guess is that there could be many bankruptcies of developing companies in Bulgaria because of the reports of thousands of unsold properties in the ski resorts and on the Black Sea coast. Many of these unsold properties were built with bank loans, so “buyer beware” applies more than ever. Buying property in Bulgaria, in an unfinished and unsold state, can put you in a high risk situation. However, the good news is that opportunities do exist to buy well located property at very attractive prices. Buying property and land in Bulgaria for own use purposes has in the past turned out profitable in the end, and you may well have chosen the best and most enjoyable strategy for long term i nvestment.
Lance Nelson, UK
Unless you plan to live here yourself, don't even think about it! Investors who fly in, buy and fly out have no idea how complex it is to finish and furnish a property in Bulgaria. As for finding a tenant, and managing the property...! On the other hand, if you intend to go about investing in a well-planned, professional manner, then we believe Sofia in particular is a great long-term bet.
Vesey Crichton, UK
Source: Vagabond Magazine
