Macroeconomic stability:
Political and economic stability, - Sustained GDP growth
of 4.7-4.9 % per year, - NATO membership achieved in 2004,
- EU membership set for 1 January 2007, - Very competitive
labor cost compared to the rest of Europe, - Very
competitive tax regime - 15% corporate profit tax and 0%
in areas of high unemployment, - Well educated, highly
trained English speaking workforce, - Strategic geographic
location, - Full national treatment of foreign investment
Top tourist destination:
Bulgaria voted No. 4 tourist destination worldwide by The
Washington Post, - 20% average annual growth of tourist
arrivals for 2002-2005 43% year-on-year increase in
British tourists for 2003, - Well developed and constantly
improving summer resorts, - Excellent skiing opportunities
with guaranteed winter snowfall, - Unbeatable prices
guaranteeing best value for money holidays, - 1600 thermal
mineral water springs, - Rich historical and cultural
heritage, - Easy access from Europe
Booming real estate sector:
25% - 180% price growth in the last 12 months (excellent
return on investment (ROI), - Still property prices are
amongst the lowest in Europe - Dramatic increase in demand
for land at Bulgarian big towns and resorts, - Strong
drive for property purchase from Bulgarians living abroad,
- Bulgaria on the agenda of top European real estate
investment funds
. Liberal foreign investment laws; . Improving bank
mortgage system; . Limited currency risk (Bulgarian leva (BGN)
is fixed to the EURO under a stable currency board);
. Cost of living is the lowest in Europe; . Historical old
towns; . Healthy and growing open market economy; . Stable
democracy; . The most stable and predictable business and
political environment in South-East Europe; . NATO
membership since 29 March 2004; . The lowest operating
cost in a European market economy; . Industrial goods
traded duty free between Bulgaria and the EU, EFTA, CEFTA
and Turkey - a market of about 510 million citizens;
. Excellent climate, natural scenery, food and
hospitality; . As a result of the achieved macroeconomic
stability foreign direct investments have been steadily on
the rise, growing by 56.9 % in 2003. The FDIs are expected
to surpass USD 2 bln. in 2004, representing 7.5 % of real
GDP; . The EU countries generated about 70% of that
investment stock. Top investors in Bulgaria have been
Germany, Greece, Italy, Belgium, Austria, USA, the UK, the
Netherlands, Russia, etc; . VAT exemption of equipment
imports for investment projects over 5 million euro;
. Annual depreciation rate of 30% for machinery &
equipment and 50% for software and hardware; . Smooth,
speeded up administrative service; . Infrastructure
subsidy for investment projects over 50 million euro; . 55
treaties for avoidance of double taxation; . 52 agreements
on mutual protection and promotion of foreign investment;
Property in Bulgaria is one of the fastest growing assets,
which is due to the the improved economic conditions,
political and social stability.
Bulgarian real estate prices are by far much lower than
other destinations in Europe but the estimated admittance
to EC membership of Bulgaria provides unprecedented growth
potential that will certainly boost the prices of the
Bulgarian real estates in the near future. Bulgarian
market is still unexplored and undeveloped to a certain
extent, which makes it very attractive and profitable.
Bulgaria is rapidly becoming the most sought after area
for investment in Europe. 1,248,138 foreigners visited
Bulgaria in the period January- May 2004 . Bulgaria is
close, being in Europe so naturally it is within 3 hours
or less from the United Kingdom , Holland and Germany by
plane.
THE Wall Street Journal reported in June that the prices
of real estate in Bulgaria jumped a world record and the
highest rise in prices registered in any country. Even the
most developed countries have seen drastic price increases
in the last three or four years. Though surprising, the
rises in Bulgaria were part of global trend. The newspaper
said that low interest rates were the main driving force
behind the boom. But there are several other factors,
including the intensifying flow of capital, aggressive
bank-lending and a frantic search by investors, large and
small, to find better returns than those offered by stocks
and bonds.
Foreign capital is behind a serious part of the Bulgarian
real estate boom, according to surveys in June. Bulgarian
companies have invested more than five billion leva of
their own funds in real estate during the last
two-and-a-half years, according to a report by Creditex, a
credit management agency.
Most realtors agree that prices for land will rise the
fastest when the country joins the European Union.
Property in Bulgaria - Why Now?
The simple answer is to make money. Managed diligently,
property investment can offer exceptional returns. With
the stock markets around the world in turmoil, pension
funds seeing fund value falls of 30%+, and with the
increased likelihood of pension shortfalls, an increasing
number of people are turning to property investment.
2Bulgaria.com believe property continues to represent a
safe investment - providing that the risks are minimized.
We believe the Bulgarian property sector will continue to
grow and become increasingly profitable:
An increase in demand due to socio-economic influences
such as: Increasing divorce rates and an increase in
single person households
A more transient work force
First time buyers not being able to get on the "property
ladder" due to increased property prices
Increase in life expectancy
Over the last 18 months, there has been outstanding
capital growth in Bulgaria market with property growth
doubling, on average, every 2.5 years.
In 2005, the market is still seeing double-digit growth.
Presently, there is a housing shortage in Bulgaria with
demand for new homes and land
More new households are being created annually, than there
are homes to accommodate them.
During the past couple of years Bulgarian real estate
market has become an appealing investment opportunity. The
great natural resources - the famous Black Sea resorts,
resorts for winter activities, year-round hiking and
nature observation opportunities make Bulgaria a popular
destination for people seeking active holidays. The
general environment is peaceful, safe and friendly.
Business prospects are unique as Bulgaria will join the
European Union on 1 January, 2007. The trend for the real
estate market is - rising prices which are expected to
last till 2014, when EU accession is finalized.
Bulgaria is the perfect destination for business travel,
offering a rich variety of first class hotels, resorts and
conference facilities, as well as convenient transport to
major cities inside the country and around the world.
Further advantages include beautiful sandy beaches,
refreshing mountain centers, ancient historical places, a
perfect climate, and lower prices compared to alternative
destinations. Finally, traditional Bulgarian hospitality
and opportunities for entertainment, recreation, and
excursions guarantee your satisfaction in Bulgaria. We can
help to ensure your comfortable stay in Bulgaria.
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