What is Real Estate

Writen by Peter Stilgoe

Until a few years ago, Bulgaria was relatively unknown to the property investment market and yet today is drawing in more and more bargain-property hunting Brits, with many people keen to buy before they've even visited this diverse country.

Situated in the heart of the Balkans, on the crossroads between Europe and Asia, Bulgaria has an enchanting mix of sandy beaches and seaside resorts, snowy mountains boasting intricate ski slopes and breathtaking views, and rugged countryside for those who enjoy being at one with nature, fishing and hunting are also popular activities here.

Described by some as the new Costa Del Sol, Bulgaria is also praised for it's beautiful countryside, historic towns and un-compromised rural traditions.

A Varied Climate

Bulgaria has a temperate climate with hot, dry summers and cold, damp winters. The Danube River runs through the country and its plains are open to the extreme conditions of central Europe, whilst the Rodopi Mountains form a barrier to the Mediterranean warmth of the Aegean Sea.

The capital Sofia, situated in the west of the country, can generally reach temperatures of 28oC in July and August and 3oC in December to February. Rainfall is highest in the mountain ranges and heavy snowfall is a strong feature of the winter. Along the black sea coast, a popular destination for holidaymakers, temperatures range from 1oC to 6oC in January, and 19oC to 30oC in July. The climate makes Bulgaria a great country for both summer & skiing holidays allowing you to virtually cover the whole year in your Bulgarian investment portfolio.

Awakening Eastern Europe

Whilst property prices reached a stagnate high in the popular holiday spots of Spain, Italy and France, Eastern Europe was awakening and the investment potential in these former eastern block states was uncovered. The fast-growing economies of countries such as Latvia Lithuania and Estonia began appearing on the radars of investment-driven buyers when they joined the European Union in 2005. With Bulgaria set to join the EU in 2007, investors were able to take knowledge from the surrounding countries' economic growth patterns and exploit the early bargains.

First the country experienced an influx of foreign investment and workers, which still today continues and who stimulated a demand for new properties. Secondly, a recent increase in affluence and the gradual emergence of a professional middle-class has fuelled the development of a stronger local market equipped to support the country's investment magnetism. It's predicted that a steady rise in demand will continue over the next 2-4 years and one reason for this is the increasing popularity in mortgages, a concept relatively unknown in Bulgaria until recently. Now a widening variety of banks and other lending institutions are offering mortgage products to the local population, allowing them to own their own homes. Also firms such as Conti Financial Services in the UK are offering mortgage-style loans to foreigners interested in buying property in Bulgaria. However, with property and land prices in line with the current local economy in many areas, there is many a bargain still to be found for the cost of a small car in the UK.

The emerging property market in Bulgaria also began attracting holiday-home buyers who could no longer afford the inflated prices of European countries closer to home. More airlines began adding Bulgaria to their flight itinerary making the country more accessible. At the same times holiday resorts of the black sea coast were becoming more established and ripe for exploration by people from all over the world after an alternative to their usual holiday destination.

So with Bulgaria's diverse landscape and developing infrastructure proving an attractive prospect for the acute investor as well as the holiday home seeker, its no wonder this magnetic mix of old tradition and modern bustle still has many profitable miles in it yet.

Peter Stilgoe runs a property investment website called Market-Trend.co.uk. He is a keen investor himself in Eastern European property & will be happy to advise anyone wishing to build up such a portfolio.