Thanks to an almost zero interest rate, low taxes and high demand Bulgaria has become one of Europe’s hottest properties.
Since the 2008 global financial collapse Bulgaria’s market has been steadily improving. Today, outlooks look remarkably positive and expected to remain strong throughout 2017. High demands, especially in major cities where supply is increasingly limited by low levels of construction make this a great time to invest.
Bulgaria’s economy is expected to expand by 2.8% in 2017, according to the IMF, making it one of the fastest growing economies in the EU. Last year Bulgaria also saw a surplus of 1.6% GDP, the country’s first since 2008.
It should also be noted that Bulgarian laws are very pro-landlord. Terms and conditions can be freely negotiated between parties and any method of rent increases or decreases can be agreed upon including periodic progressive increases of indexation. There are also no rent controls. However, be cautious of the weak court systems, which can make it difficult for landlords to evict tenants.
If you’re wondering where to look major cities or resort towns are both sound options.
The capital city of Sofia offers a great cosmopolitan experience and decent gross rental yields which are currently around 6.0% in the cities center. If you are to branch out a bit further south to some of Sofia’s most prestigious suburbs, like Boyana and Dragalevtsi you can find yields up to 6.4%.
Situated to east of Sofia on the coast of the Black Sea is Varna. Buyers looking to invest in foreign property are attracted by the scenic beaches and vineyards. Here you will find quaint farmhouses and beach homes averaging at about 835 euro per sq. m.
Also off the coast of the Black Sea is Sunny Beach, one of the largest and most developed regions in Bulgaria’s property market. Sunny Beach’s picturesque beaches and clear blue skies have traditionally been very attractive to investors and with an average housing price of 685 Euro per sq. m it’s easy to see why.
Located at the foot of the scenic Pirin National Park you will find Bansko, the ideal place for those looking to invest in a winter holiday retreat. Bansko is home to the most popular ski and snowboard resorts in Bulgaria and with an average price of 586 Euro per sq. m this investment is hard to beat.
