The Bulgarian Property Market-Fantastic Choices- Fantastic Returns

Bulgaria is currently the European property investment hotspot. Prices are rising steadily at 30% per annum and are expected to leap forward when the country becomes a full member of the EU in 2007.

Bulgaria is a truly remarkable country with a varied terrain. Not only can it offer city, coastal, mountain and rural properties but the vast amount of real estate that is available to buy, also comes with prices that will fit into everybody’s budget.

Coastal properties.

The waters of the Black Sea are actually warmer than those of the along the Spanish mainland throughout the summer months. Popular investment locations are Sunny Beach, Golden Sands and Varna. Up and coming destinations include Nessebar St. Vlas and Balchik.

The developments that are on offer are predominantly designed as seaside holiday apartments. However there is also now a fast-growing golfing market that is being catered for with new developments either in construction or planned. Prices can be from as low as £20,000 for a studio apartment to £100,000 for detached villas on the golf resorts. Instant equity and guaranteed rental are also available in certain complexes.

City apartments.

Sofia as the capital and Plovdiv as the second city, are the two main areas for growth. Real estate in Sofia is currently around 25% of the cost of other European capital cities. Plovdiv is even cheaper, with prices around EUR400 to EUR500 per square metre.

The cities offer an excellent investment choice, with good rental expected from companies relocating to Bulgaria. Corporate lettings can offer consistent guaranteed rental with minimum risk. Prices range from around £30,000 for an apartment on the outskirts of town to over £100,000 for a city centre apartment with excellent facilities. These prices are considerably cheaper than other properties for sale across Europe.

Rural investments.

The countryside really does offer the cheapest real estate. Bulgaria is a magnificently beautiful country. Roughly the same size as the UK, the country has a total population of less than 8,000,000. The infrastructure can pose a problem in more isolated areas, and price increases will probably take longer than the more popular destinations. Nonetheless, detached properties with acres of land are readily available for less than £10,000.

Mountain and skiing real estate.

Bulgaria has three main ski resorts. Borovetz, and Bansko and Pamporovo. The ski season is the longest in mainland Europe. From an investment point of view, the mountaini resorts probably offer the best opportunity for a huge capital gains. The mountains only offer a small, defined area for the development. Once all the available land is built upon, all the existing properties will attract the highest premiums.

Much more informal than other European ski destinations, the Bulgarian resorts offer real value for money. Skiers and snowboarders, appalled by the exorbitant prices charged, especially in France or Austria, will be pleasantly surprised by the ridiculously cheap prices, in all the Balkan resorts. A pint of beer is around 80p and a three- course dinner with a bottle of wine is under six pounds.

The properties available also echo the fantastic value for money, at 60-70% cheaper than other European equivalents. Studio apartments are readily available for less than £30,000 as are two-bedroom apartments in the £60-£80,000 region. The ski season for 2006/2007 is already 75% booked and for those owning property, rental income is virtually assured.

In conclusion, Bulgaria offers a viable investment alternative for everybody. Even with the meanest budget of under £10,000, a fast appreciating property can be bought. For those looking to build an expansive portfolio, all the regions offer fantastic value for money and will return considerable capital gains over the coming years.

Varna, Bulgaria – Property Investment

Varna is a significant trading centre, commercial sea port and is situated on the northern Bulgarian coast. Varna and the surrounded resorts of Golden Sands, Sveti Konstantin, Albena and Balchik offer some of the best soft sandy beaches in Europe.

The area has become an increasingly important summer holiday destination with many visitors from the UK, Germany, France as well as the traditional visitors from Russia and other parts of Eastern Europe. The economy in Varna is strong and it is experiencing large investments in major new city centre projects, including residential and commercial developments. The average salaries are rising strongly and a professional person will be receiving double or even triple the salary from 5 years ago. The joining of Bulgaria into the European Union in January 2007 has added to this inflation which is set to continue.

The property market for holiday homes is also strong in Varna. Balchik to the north is surrounded by three golf courses and the magnificent Albena resort with superbly maintained beaches have attracted significant investment from foreign buyers in these areas. This also looks set to continue with the emphasis on high quality construction near the beach, or properties that offer lifestyle opportunities, further away from the main investment areas.

Interest rates are currently around 6% but the Bulgarian lev is tied to the Euro. It is expected the lev will be replaced by the Euro in 2009. This will lead to a parity in interest rates making Bulgarian property more affordable in the future and therefore a good time to buy property in this expanding market.

Bulgarian property is relatively inexpensive to build, approximately 700 Euro per sq m. This is about 40% less expensive than in the UK. However, with the cost of building rising rapidly in Bulgaria, it will not be possible to build in 2010 at the current real estate market price average of 1000 Euro per sq m in 2007.For more information about Varna or Bulgarian property investment go to:-

Euro Pounds Currency Exchange – How This Affects Your Bulgaria Property Purchase

Sterling hit a fresh two-week low against the euro and also lost ground against the dollar on Wednesday after UK growth data which came in line with expectations prompted some position adjustment. Britain’s economy grew 0.6 percent in the first quarter of 2006 with the annual rate of 2.2 percent, exactly in line with analysts’ forecasts. Service sector growth slowed to 0.6 percent, after growing 1 percent in the last three months of 2005, due to weaker retail and car sales.

“The data was bang in line with expectations,” said Ian Stannard, currency strategist at BNP Paribas. “We are seeing cable coming under pressure in a corrective pullback after the gains we have seen in the past couple of weeks.”

By 0845 GMT the pound fell to the day’s low of $1.7806, down 0.3 percent on the day, off Tuesday’s seven-month high of $1.7943. Elsewhere, ECB executive board member Lorenzo Bini Smaghi said that if the European economic recovery strengthened, the central bank would adjust rates to avoid inflation, in comments published in an Italian newspaper.

Meanwhile, ECB governing council member Axel Weber told Bloomberg television that risks of second-round inflation effects had risen. Most analysts expect the ECB to wait until June before raising rates from 2.5 percent after ECB President Jean-Claude Trichet earlier this month doused widespread expectations for a move as soon as the May 4 meeting. Even so these comments will serve to put further pressure on Sterling in the coming months.

Interbank rates

GBP/EURO – 1.4340

EUR/GBP – 1.4389

EUR/USD – 1.2379

GBP/USD – 1.7790

USD/GBP – 1.7850

GBP/AUD – 2.3880

GBP/NZD – 2.8370

GBP/CAD – 2.0140

GBP/CYP – 0.822

GBP/AED – 6.535

GBP/ZAR – 10.95

GBP/CHF – 2.2610

GBP/PLN – 5.5790

GBP/CZK – 40.767

GBP/THB – 67.17