Why Buying a Property in Bulgaria is the Latest Trend

Buying property in Bulgaria is the latest trend that seems to have caught the world with a sudden swiftness. One of the reasons is because the property prices in Bulgaria have risen by more than a whopping 25%. The reason for the phenomenal growth of the real estate market is the improved monetary conditions of the country, and the political and social stability. The other significant factor for the growing property market is the enormous tourism potential that Bulgaria has, because Bulgaria is gifted with many natural attractions that have been sufficiently preserved due to a limited amount of urbanization.

Bulgaria is located in Southeast Europe and occupies the eastern part of the Balkan Peninsula. The climate is temperate continental with four defined seasons, and has a Mediterranean influence in the southern regions, although average summer temperatures rarely exceed 30°C. The capital city of Bulgaria is Sofia, and the larger cities in the county are Plovdiv, Varna, and Veliko Turnovo. Currently, Bulgaria is regarded as a budding tourism market in Europe and is one of the most visited tourist destinations in Europe. In 2007 an estimated 8 million tourists visited the country, therefore making Bulgaria a great place for people looking to invest in property that can be used as a rental income.

For a person thinking of buying property in Bulgaria, it is vital to seek the services of a local real estate agent. Many estate agents in Bulgaria charge a viewing fee. Some may charge on a per day basis while some may charge per mile of distance that is covered while hunting for the ‘right deal’. The reason why the viewing fee is charged is because many times, the ‘time wasters’ just look at properties when they have no intention of buying anything. However, such ‘time wasters’ may not be in large numbers as most foreign visitors have a definite purpose in combing areas in search of the right property. Nevertheless, paying the fees is mandatory for visitors.

Bulgaria is one of the best destinations for foreigners who wish to invest in property: Bulgaria was invited to become a member of NATO in 2004; the country received a full EC membership in 2007; Bulgaria is politically stable and the laws are being constantly upgraded in order to keep up with the times. As a result, investing in Bulgarian property seems to be a ‘safe deal’. However, one must be wary of tall claims made by the real estate agents. Some make promises of ‘double profit’ to which an investor may fall prey. Some dishonest agents may even ‘hurry’ a person into making the final deal by telling them that properties are in short supply, and may be ‘sold out’ very soon. Some may promise unrealistic gains. When property dealing seems too good to be true, it is wise to exercise caution rather than risk loosing a large sum of money on a property that will not live up to what the estate agent is saying.

Foreign investors have the option of purchasing property in Bulgaria either directly, or through a local company. There are laws and rules for foreigners buying property in Bulgaria, for example, as of now, only Bulgarian-resident individuals and entities are allowed to own land in the country. The non-residents can acquire only buildings in Bulgaria. For that reason, if foreigners want to invest in property, they have to register with a Bulgaria based company that is allowed to ‘hold the building’. As soon as the company is registered, property may be purchased in the company’s name.

When it comes to buying property, Bulgaria has a lot to offer investors, and a wise investor would do some homework before a property was bought.