Press Release: Bulgarian Properties | Dubai Real Estate

Bulgaria is worlds top performing market

The only countries to have bucked the global downward market trend are Bulgaria, Slovakia, Cyprus and the Czech Republic, where house price growth has accelerated. Last year's fastest-growing market, Russia, which was seeing house prices rising at an astonishing 53.7% in the second quarter of 2007, has dropped back to a growth rate of 26.5%.
Nick Barnes, head of international research at Knight Frank, said: "The index shows that global house price inflation is continuing to fall back, with much of continental Europe now seeing low or negative growth ... Housing markets in countries such as Spain, Denmark, the UK and Ireland are all being severely challenged by the global credit squeeze."
Globally, the rate of house-price growth fell to 4.8% in the second quarter of 2008, down from 6.1% in the first quarter of the year.
Investors who bought second homes in Bulgaria have reason to feel bullish. Knight Frank said current annual price growth is 32.2%, only slightly lower than the 33.7% rate recorded in the first quarter.

Coral Estates.com (03 September 2008)

Bulgaria flagged up as lucrative investment market

Foreign Property buyers could be able to collect healthy returns in Bulgaria, according to industry experts. Investment company Aston Lloyd said emerging destinations across the world tend to be highly lucrative markets for second home buyers. Bulgaria was flagged up as one such location, as property values are relatively affordable when compared with many other places. However, prices in the eastern European country were said to have gone up by more than a third last year, which means it also offers good capital growth prospects. Joe Upchurch, director of Aston Lloyd, commented: "Owning something in these areas may not impress your neighbours just yet, but in a few years they may well be jealous." The organisation added that Bulgaria, which became a member of the EU in 2007, is set to receive nearly £9 billion in funding from Europe over the next five years.

More Britons purchasing Bulgarian currency

Investors in the Bulgarian market could be in line to benefit from growth in the country's tourism sector. According to the Post Office, demand for Bulgarian currency has been going up steadily in the last three years. Indeed, figures show that the number of sales in the UK has gone up by 126 per cent since 2005. This suggests that the eastern European nation is seeing significant growth in the annual number of incoming visitors, a development which would have a knock-on effect on its rental market. As a result, Bulgaria may be a potentially lucrative market for buy-to-let investors to consider. Helen Warburton, head of travel at the Post Office, said the demand for Bulgarian notes shows that while people in the UK are not deserting traditional destinations, people are increasingly considering other options."Many UK tourists are shopping around in Europe," she commented. This comes after Bulgaria was flagged up as a good market to consider by Aston Lloyd, which said property values are relatively affordable when compared with many other markets.

RUSSIAN INTEREST IN BULGARIAN PROPERTY MARKET GROWS

There are times when the "Russian invasion" could be a pleasant surprise. When speaking of investments and buying property in Bulgaria, that is.
Russian buyers seem to be the new hope of property developers after the tide of British and Irish clients has begun significantly to subside since last year.
According to a survey by Green Life Property Development, as cited by Stroitelstvo Gradut weekly, a steadily increasing number of Russian, Scandinavian and Romanian buyers has come as a satisfying substitute, with Russian-speaking clients making up to 90 per cent of all buyers.

Sofiaecho.com (08 September 2008)

BULGARIA - OUTLOOK GOOD FOR SHREWD INVESTORS

Bulgaria is still an emerging economy. It does not have the huge debt issues affecting America and Great Britain. Bulgarians largely have mortgage free properties and credit cards are still not commonplace in this country. Moreover, the banks there did not get involved in buying CDO’s and other exotic investments which have now gone spectacularly wrong that has helped create the credit crunch. The fact is though that inter bank lending, between all banks, has tightened and therefore banks are getting choosy in their lending habits. Will this last forever? Of course not. It never has and in fact there is evidence that inter bank lending is showing signs of recovery with the EURIBOR rate falling 1% in less than six weeks.
Bulgaria does – still – have a highly educated workforce that is cheap. It is still a good place to do business. In fact the World Bank recently stated it has one of the best tax systems in the World and rated Bulgaria as the only country in the EU to feature in the worlds top ten countries most suitable for investment. Long term the future for Bulgaria is no different to what it was two years ago. Does Bulgaria have issues? Undoubtedly. Its current account deficit is simply too high (they need to export more) and it is positive that attention is now being focussed on this area so it can now be addressed.

Source: http://www.msidevelopments.com/

OBAMA WIN WILL INJECT MUCH NEEDED CONFIDENCE INTO GLOBAL PROPERTY MARKET

Obama's win is also seen as a positive move for property markets around the world. Global estate agents Hamptons International said it anticipates that the world economy and housing markets will feel the benefit in the coming months.
'Should Barack Obama follow through on his pledges for change for the US housing market, this should have a ripple effect on housing markets across the globe, with the US widely regarded as the economic trend setter,' a spokesman said.
'Even simply considering the confidence factor, this will re-inject trust into the market. Shoots of optimism are badly needed and Barack Obama's leadership will help to instill the buyer confidence that the market is crying out for,' he added.
Source: http://www.propertywire.com/

THE HOUSING MARKET - IS IT STILL POSSIBLE TO MAKE MONEY FROM PROPERTY?
Knight Frank’s latest quarterly Global Property Index, made available exclusively to The Sunday Times, shows that prices in many parts of the world are still rising at a considerable rate — and, in some cases, have even been accelerating. The list is headed by Bulgaria, where prices rose 34% last year, compared with 17.4% in 2006 — although the sharpest growth has been in Sofia, the capital, where property inflation reached 50%.
The Sunday Times, 16th March 2008

TOP TEN PLACES TO MAKE MONEY FROM PROPERTY
According to Ireland's Sunday Tribune, Bulgaria has been one of the hottest markets in Europe for the last number of years. The UN World Tourism Organisation believes Bulgaria to be one of the most appealing 'new faces' in the tourism industry today and by 2010 expects 20 million tourists will be visiting the country per annum. As a result, inward investment has grown. According to Global Property Guide data Bulgaria had the fastest growing house prices in 2007 with a growth of 30.6%.
Ireland's Sunday Tribune, 4th March 2008

HOUSING PRICES IN BULGARIA GROW AT A HEAD-SPINNING RATE
New high-jump world champions emerged in Bulgaria - residential property prices. "Bulgaria is now the second in the world in property prices increase," real estate agents report. The leader is Latvia, according to Knight Frank UK survey for the second trimester of 2007 compared with the same period of 2006. From April to June housing prices in Bulgaria went up by 27.1%. For the same period last year the increase amounted to a 12.2%. The speedy price hike sends Bulgaria up by eight positions in the world chart.
Standard News, 20th September 2007

PERELIK – THE NEXT MOUNTAIN SPOT IN BULGARIA
There are plans for a grandiose tourist complex in Bulgaria’s biggest Rhodopi Mountain, where the former biggest Balkan ski resort Pamporovo can also be found. The project, called Perelik, consists of over 200 km ski runs and about 100 km of ski lifts. The project is estimated at more than 300 million euro. The Perelik project received an Investor First Class certificate from the state. An airport near Smolyan, a 100km three-lane road from Plovdiv and a golf course are planned for construction, The Perelik project is intended to be completed in the period 2012-2014.
The Sofia Echo, 10th September 2007

BULGARIA COULD BE EUROPE’S NEXT GOLFING “HOTSPOT”
Real estate developers in Bulgaria have already woken up to the massive pulling power of top quality golf courses, experts say. "Five signature courses - from the likes of Ian Woosnam, Jack Nicklaus and Gary Player - are planned," says Chris Goodall from English language magazine Quest Bulgaria.With global golf tourism worth over GBP 10 B, Bulgaria has 12 new 18-hole courses in development or underway, with five due for completion by 2008. Experts point out that Bulgaria is set to prosper from its all-new putting greens, given the success of Spanish and Portuguese golf developments and with low cost airlines further spurring golf development.
Sofia News Agency, 5th May 2007

EASTERN EUROPE TO BE TOP TOURIST DESTINATION
By 2020 nearly every third visitor to Europe will choose a central or Eastern European destination, according to the World Tourism Organisation.
Sofia News Agency, 5th May 2007

BULGARIA STILL BEST FOR OVERSEAS PROPERTY INVESTMENT
Bulgaria has been named the best destination for overseas property investment, even though its tourist hotspots are showing signs of overheating, according to a new research.UK ranks as the best for investment returns with Bulgaria second, says the quarterly investment tracker, released by British investment firm Assetz. Making up the rest of the top five are Canada, Cape Verde and Cyprus respectively.Bulgaria maintains a strong position in the tracker with a total of 71% return on cash invested, but Assetz advised caution to investors, especially in the tourist hotspots such as Sunny Beach and Bansko where there is a severe oversupply of apartments. However, average prices have increased from 17.3% to 22.5% annually in June 2007, possibly due to a number of âprestige' developments coming onto the market.
Sofia News Agency, 30th June 2007

WORLD BANK LENDS BULGARIA 90 MILLION EURO'S FOR TRANSPORT INFRASTRUCTURE UPGRADES
World Bank's board of directors approved EUR 90 M in funding for a project to upgrade transport infrastructure in Bulgaria, the institution said on Wednesday.The funds will be used to rehabilitate first, second and third class roads with total a length of 450 kilometres
Sofia News Agency, 30 Jun 2007

BULGARIA PROPERTY MARKET IS “IDEAL”
Bulgaria is enjoying a strong property market since joining the European Union, claims real estate portal RightmoveOverseas. Interest in the country has grown, with the website reporting that site searches for Bulgarian Property has doubled since the start of the year as more people become aware of the investment opportunities in the country. Figures suggest that in the most popular area of Bulgaria, property prices rose by 20 per cent in 2006 and that ongoing improvements and developments are likely to encourage more growth over the next 12 months. "Bulgaria is currently poised at the ideal stage of the emerging market property cycle; where the riskiest, most profitable period may have passed, but the greatest period of growth has yet to come," explained RightmoveOverseas' head Justin Figgins.He added: "The previous build up to EU accession, gaining EU membership and its surging popularity are all ongoing contributing factors in sustaining the exciting development of this former Soviet Bloc state."
Sofia News Agency, 22th June 2007

BULGARIA TOUTED AS EUROPE’S 3rd BIGGEST PEOPERTY HOTSPOT
A new reearch has ranked Bulgaria as the third most attractive residential investment destination in Europe. Bulgaria came 3rd with 10.6% gross rental yields, reform on track and low prices.
Sofia News Agency, 7th June 2007

BULGARIA IN TOP 3 TOURIST DESTINATIONS FOR EUROPEANS
Bulgaria has made it to the top 3 of preferred tourist destinations among the Europeans, together with Greece and Tunisia, Bulgarian National TV Channel reported. This summer the travelling agencies expect a 12% growth in the number of foreign tourists in Bulgaria and 60% of them will come from the EU member states. In the last four years the country has gained popularity because of its luxurious hotels, unconventional tourist offers and the attractive venues. Still, there is a chance for Bulgaria to repel foreign tourists because of the uncontrolled construction works all over the Black Sea coast.
Sofia News Agency 2nd June 2007

BULGARIA“THIRD MOST PROFITABLE FOR BUY-TO-LET
Bulgaria has been ranked the third most profitable country for buy-to-let investors, lagging behind Poland and the United Kingdom, according to a report of property investment firm Assetz. Bulgaria - 54% net capital gain on cash invested, according to the study.
Sofia News Agency, 10th April 2007

PROPERTY IN BULGARIA – FROM LAUGHABLE TO FASTEST GROWING MARKET IN EUROPE
"A decade ago, the idea of buying a holiday home in Bulgaria would have been laughable. Ten years on, and now a member of the European Union, it is one of the fastest-growing property markets in Europe," reads an article in the British magazine "This is Money". Analysts at estate agent Knight Frank consistently put Bulgaria in the world's top five areas for growth - with price hikes of 20.5% recorded over the past year alone. Another British mortgage broker estimates that Bulgaria will account for 25% of overseas business by 2020.
Sofia News Agency, 31 March 2007

THE PROPERTY MARKET IN BULGARIA
There’s no denying the effect the EU’s expansion is having on countries like Bulgaria. Property prices here have been rising by more than 30 per cent per annum – one of the highest rates in the world. Rates are around three times higher than in countries like Italy or France. The cost of living remains low, but has started balancing out now the country has joined the EU, reflecting a new but fully fledged market economy.Bulgaria has some of the cheapest property in Europe. New investment developments are indicative of the directions the tourist industry is taking: skiing, and beach holidays. Bulgaria is certainly the cheapest country in Europe for new ski accommodation.
The Brooklands Group, Sept 2006

THOMPSON & BALKAN RUN REGULAR CHEAP FLIGHTS TO PLOVDIV
Thompson and Balkan Airlines both opened regular cheap flights to and from the international airport in Plovdiv.

13.08.07
EASY JET ANNOUNCES EXPANSION INTO BULGARIA
EasyJet, Europe’s leading low-fares airline, today announced the addition of seven new routes this Autumn, including new connections to currently served destinations and the addition of Bulgaria to its network.