Bulgaria is a former communist country which from January 2007 is a member of the European Union. The country, since the fall of the socialist government in 1996 due to a major economic downturn, has experienced macroeconomic stability and positive growth rates since then (due, in part, to the introduction of a currency board in 1997) and it exists under what is now a stable parliamentary democracy with a majority in parliament and public consensus on key social and economic priorities. Currently, Bulgaria demonstrates a stable and predictable macro economic climate showing economic growth at 4.5% (one of the highest in Europe), annual inflation at 3.8% and strong growth figures in the tourism industry (up 10% in 2002 compared to 2001). The percentage for 2006 compared to 2003 equals to more than 60%. It boasts low rates of taxation across the board and has one of the lowest cost centers in Europe even though the workforce is highly skilled and qualified.

  The currency is the Bulgarian Lev (1 Euro = 1.98 Lev) which is already pegged to the Euro.

  Bulgarian real estate market
For the first time a Real Estate Market Index was published in October of 2002, which in March 2003 reached 104.37. A small beginning but we believe, the start of a longer-term trend.

  Property prices are without doubt good value in Bulgaria. This may be due in part to the general historic neglect of its asset markets and also because the Bulgarian currency (the Lev) is undervalued. In addition, the current
restrictions on a foreign persons ability to purchase title to land is further affecting the liquidity of the market. With increased purchasing power will come product and asset price inflation. On the Black Sea coast this will additionally be fuelled by further growth in tourism with an increasing realisation of Bulgaria as being an acceptable alternative to say Spain, Portugal or Greece as a holiday destination and followed by increased activity in the property market arising from interest by overseas buyers in owning a second or holiday home there.

  Only recently, the Bulgarian Embassy in London has informed us that they themselves are “swamped with enquiries from within the UK about how to buy property in Bulgaria”.

  Bulgaria has been included in NATO in November 2003, and very soon is expected the membership of the EU in January 2007. This, combined with the removal of certain remaining constitutional restrictions on foreign investment in land (due to its incompatibility with EU membership) and in addition to the other factors mentioned, should cause an increase in the property markets liquidity and therefore its level. It is expected for foreign people still not to be able to buy land solely until 2014 but the process would be very eased.

  In its April 2003 issue, the independent property related newsletter, Hot Property Alert was quoted as saying that “Bulgarian real estate has enormous potential”. The Times was also recently quoted as saying that “if Bulgaria joins the EU there is the possibility that property prices could take off, rewarding early buyers”. Bulgaria was also recently featured on Channel 4’s ‘A Place in the Sun’ programme when it was stated that the country offered “excellent value for money for foreign investors with prices ranging from as little as £5,000 for a traditional cottage”. Since that many people had the priviledge to buy a property in Bulgaria at a low price and to take advantage selling it for twice or even three times the price it was bought, with a minimum work, of course.

  Other respected newspapers have also run articles recently about the property bargains to be had in Bulgaria such as The Financial Times – “Time to probe Balkan Bargains” and the Sunday Telegraph with – “New kids on the Eastern Block”. The Times again – “Bargain hunters look to the East”.

The Overseas Property Professional magazine has with its every edition fabulous articles on Bulgaria, stating that this is "the most profitable market for investment at the moment"

The political system

There are two major parties in Bulgaria - the democrats and the socialist, who literally take in ruling the country. The other major activists on the political scene are the party of minorities/ DPS/, the agricultural party /BZNS/, the party of the son of the last Bulgarian King - Simeon II and the national party Ataka. The parties may have different views on the educational system or the healthcare, but when is about foreign investments they act in consensus. They all agree it should be done in order to make the standart in the country higher.

So, anyone can say, when it is regarding the real estate, and the foreign capital, no surprises are expected.