Bulgaria property benefited massively from the boom in overseas property investment. Foreign investors flocked in literally by the thousand for the massive rental yields the low prices offered and to earn while the investment doubled in capital value in a matter of years.
Now that all the world has been battered financially and property values have fallen in almost every region of every country, you could be forgiven for thinking that is what did damage to Bulgaria's popularity also.
It isn't. Something changed, and Bulgaria became somewhere that more people were selling in than buying in long before most overseas property markets saw falling demand.
A friend of mine was working for one of the overseas property portals at the beginning of 2008, and he said that the number of apartments and flats for sale in Bulgaria's hotspots, especially Bansko began to grow rapidly. Supply quickly overran the demand for such properties and prices began to fall. Fast.
The only possible factor I can think of for this phenomenon is that the people had heard that a recession was looming for Bulgaria and tried to sell up before it hit, and/or some of them had bought early in Bulgaria’s heyday and grown disappointed with capital growth.
But now, as demand for overseas property begins to grow again, Bulgaria has a chance of becoming very popular again, here are some of the reasons why:
- Bulgaria property is extremely cheap still, so rental yields are good on the right properties (research x2 but x1)
- Bulgaria is an EU member, which will jibe well with today’s risk averse buyer
- Bulgaria has not adopted the Euro, in other words it has the safety and stability EU membership affirms without the strong Euro upping prices
AS with anywhere, if you do your research well enough, you can get some good cash-flow rental properties in Bulgaria, and you can buy off plan now because demand is expected to stay low until the global economy recovers.
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