bestbgproperties
20-08-07, 09:24 PM
After 5 years of constant price increases, the boom in the Bulgarian property market continues. This hike goes on even now with cumulative growth of 10% on average but it varies from region to region. The rise in property price after Bulgaria’s EU accession is a natural process. These hikes are results from purely market mechanism - great demand and lower level of supply.
The capital city Sofia has naturally the biggest demand for property, followed by Varna, Bansko ski resort and the beach resorts on the Black Sea Coast. We have to mention also a few other bigger cities and regional centers in the country like the cities of Veliko Tarnovo and Plovdiv. This demand in Bulgaria’s biggest cities is being driven mostly by local buyers and investors.
Here are the top reasons to invest in property or business in Bulgaria
• Highly-skilled, multilingual workforce at Europe's most competitive wages
• Stable and predictable business and political environment
• EU membership on January 1, 2007 gives access to markets of over 500 million consumers
• The lowest operational costs and tax rates in a European market economy
• Industrial goods traded duty free between Bulgaria and the EU, EFTA, CEFTA and Turkey
• Excellent climate, natural scenery, food and hospitality
• Flat corporate income tax rate of 15% (2006 expected rate: 12%)
• VAT exemption on equipment imports for investment projects over Eur 5 million
• Annual depreciation rate of 30% for machinery & equipment, 50% for new equipment used in entirely new investment or expansion and 50% for software and hardware
• Acquisition of land and property through Bulgarian registered company with 100% foreign ownership
• Seamless administrative services through InvestBulgaria Agency
• 55 treaties for avoidance of double taxation
• 52 agreements on mutual protection and promotion of foreign investment
Let’s make a quick flashback of the property price changes for the past few years.
2007
Residential property prices in Bulgaria’s large cities are expected to increase 10 per cent by the end of 2007. Residential property prices in Sofia went up 16 per cent in the first quarter of 2007 and those in Varna 18 per cent as compared to figures for the last quarter of 2006.For the same period, vacation property prices at the Black Sea and winter resorts increased 22 per cent. The average price growth for the first six months of 2007 reached 25 per cent in some of Bulgaria's bigger towns. The figures exceed expectations for a slight increase of residential property prices in Bulgaria after its EU accession. The mortgage market is catching up all other EU countries. This is among the main factors that influenced the dynamic price increase in the country. However Bulgaria continues to be EU’s cheapest country concerning residential property prices. The average prices in European capitals vary between 150 000 and 200 000 euro. In Sofia, the average price of a 60 to 70 sq m apartment varies between 70 000 and 80 000 euro.
2006
Last year the property prices in Bulgaria have gone up with more than 25 % in general. Some real estates have gone up with 50 % for one year, especially the ones in Sofia, in the Black Sea beach resorts (Sunny Beach) and in the ski resorts (Borovets & Bansko). The improved economic conditions, political and social stability in Bulgaria over the last 3 years brought to a real boom of the prices of property in Bulgaria.
2005
With respect to the real estate prices, the average increase for 2005 was in the range of 24 – 28 %. This is due mainly to the low rents and the increasing interest for buying a property in Bulgaria. Bulgaria was for sure the right place for investing at that time.
So what does all that mean? Is it still HOT to purchase in Bulgaria?
During the past 2 years the tourism industry has seen an unusual boom, to be precise more than 4 million tourists have visited the country for the purpose of “recreation and leisure” – this is an increase of 13.5% from the previous year, an impressive figure taking into account that most countries have seen a decrease in the number of tourist visitors.
The tourism potential always attracts investors who will have guaranteed rental. Bulgaria has everything to offer: Ski slopes, golf courts, luxurious Spa resorts, beach villas , rural serenity. There is something for every taste.
The capital city Sofia has naturally the biggest demand for property, followed by Varna, Bansko ski resort and the beach resorts on the Black Sea Coast. We have to mention also a few other bigger cities and regional centers in the country like the cities of Veliko Tarnovo and Plovdiv. This demand in Bulgaria’s biggest cities is being driven mostly by local buyers and investors.
Here are the top reasons to invest in property or business in Bulgaria
• Highly-skilled, multilingual workforce at Europe's most competitive wages
• Stable and predictable business and political environment
• EU membership on January 1, 2007 gives access to markets of over 500 million consumers
• The lowest operational costs and tax rates in a European market economy
• Industrial goods traded duty free between Bulgaria and the EU, EFTA, CEFTA and Turkey
• Excellent climate, natural scenery, food and hospitality
• Flat corporate income tax rate of 15% (2006 expected rate: 12%)
• VAT exemption on equipment imports for investment projects over Eur 5 million
• Annual depreciation rate of 30% for machinery & equipment, 50% for new equipment used in entirely new investment or expansion and 50% for software and hardware
• Acquisition of land and property through Bulgarian registered company with 100% foreign ownership
• Seamless administrative services through InvestBulgaria Agency
• 55 treaties for avoidance of double taxation
• 52 agreements on mutual protection and promotion of foreign investment
Let’s make a quick flashback of the property price changes for the past few years.
2007
Residential property prices in Bulgaria’s large cities are expected to increase 10 per cent by the end of 2007. Residential property prices in Sofia went up 16 per cent in the first quarter of 2007 and those in Varna 18 per cent as compared to figures for the last quarter of 2006.For the same period, vacation property prices at the Black Sea and winter resorts increased 22 per cent. The average price growth for the first six months of 2007 reached 25 per cent in some of Bulgaria's bigger towns. The figures exceed expectations for a slight increase of residential property prices in Bulgaria after its EU accession. The mortgage market is catching up all other EU countries. This is among the main factors that influenced the dynamic price increase in the country. However Bulgaria continues to be EU’s cheapest country concerning residential property prices. The average prices in European capitals vary between 150 000 and 200 000 euro. In Sofia, the average price of a 60 to 70 sq m apartment varies between 70 000 and 80 000 euro.
2006
Last year the property prices in Bulgaria have gone up with more than 25 % in general. Some real estates have gone up with 50 % for one year, especially the ones in Sofia, in the Black Sea beach resorts (Sunny Beach) and in the ski resorts (Borovets & Bansko). The improved economic conditions, political and social stability in Bulgaria over the last 3 years brought to a real boom of the prices of property in Bulgaria.
2005
With respect to the real estate prices, the average increase for 2005 was in the range of 24 – 28 %. This is due mainly to the low rents and the increasing interest for buying a property in Bulgaria. Bulgaria was for sure the right place for investing at that time.
So what does all that mean? Is it still HOT to purchase in Bulgaria?
During the past 2 years the tourism industry has seen an unusual boom, to be precise more than 4 million tourists have visited the country for the purpose of “recreation and leisure” – this is an increase of 13.5% from the previous year, an impressive figure taking into account that most countries have seen a decrease in the number of tourist visitors.
The tourism potential always attracts investors who will have guaranteed rental. Bulgaria has everything to offer: Ski slopes, golf courts, luxurious Spa resorts, beach villas , rural serenity. There is something for every taste.