Real Estate Property Investment Series: Focus Bulgaria 2007
To put it simply, 2007 could well be the year when Bulgaria stops emerging as a nation and it finally arrives as a top destination with strong real estate investment opportunity supported by a local society growing in affluence and backed up by a strong tourism market and fledgling international expatriate and retiree demand.
Prior to the very recent announcement that Bulgaria really would join the European Union in 2007, those who bought property in Bulgaria were seen as speculators banking on the nation being accepted as a fully paid up member. These investors naturally took a great deal of profit from the market when the announcement came through. Subsequently there have been many media reports that there is no more room for profits to be made - but that is an incredibly short sighted view to take! Sure, the speculators have been there, done that and derived double digit returns on investment each year to date - but going forward there are many fundamental factors underpinning the ongoing profitability of property in Bulgaria.
For example, with EU entry comes massive investment and the ability for companies and commercial operations from across Europe to set up operations in Bulgaria or to begin trading more intensely with Bulgaria. One of the main property market sectors set to expand significantly as a result is the retail sector - a company like Technopolis Bulgaria is perfect to demonstrate the direction many retailers are planning on taking in 2007. Technopolis Bulgaria is a company part German and part Bulgarian owned that is already dominant in its consumer electronics market sector and which already owns 11 mega stores across the country but which, in 2007, has plans to begin building hypermarkets. Not only this, they have further plans to expand across Bulgaria's borders and they are just one in an incredibly long line of retailers with plans in place to construct logistics and warehousing in Sofia as well in 2007.
Retailers' demand for land is going to go head to head with residential developers' demand for land in the main commercial centers and resorts and this will force land prices up which will inflate the prices of properties for sale…buyers need to get in ahead of this price push and 2007 is the year when they need move quickly.
There are further factors that will inflate house prices in Bulgaria from 2007 onwards - with EU entry comes a requirement to adhere to EU rules and regulations and these rules and regulations don't come cheap! Constructors will need to upgrade materials used and also safety standards in place. Furthermore Bulgarian labour can now begin demanding equal rates of pay with their EU counterparts and on top of this, commodities such as electricity are set to increase in 2007. The National Construction Federation has estimated that in 2007 alone 5% will be added to the price of construction because of all of these factors.
This will affect those who come to the market late and anyone hoping to tap into a society growing in affluence and demanding more and better accommodation as well as a tourism market that is rapidly expanding need to move quickly in Bulgaria if they want to profit fully. It is estimated by many experts in the Bulgarian property market that there is a window of maximum opportunity currently that will last until 2010 after which point the Bulgarian property market will have met demand with supply, property prices will meet affordability and short term strong gains will be far less achievable.
Finally, changes to the Bulgarian constitution to allow straightforward foreign ownership of real estate have been made but not yet enacted and while this remains the case there will exist in many people's minds additional risk or unsatisfactory levels of administrative hassle associated with buying property in Bulgaria which one has to do via a limited company structure. This will keep prices competitive until the constitutional changes become law which is estimated to happen somewhere between 2010 and 2014. This means that those who commit now can buy in ahead of a potential boom in property transactions which will most likely occur when it becomes simple to buy and own land and property in Bulgaria.
Related Tags: property, investment, real estate, real estate investment, property investment, europe, bulgaria
Rhiannon Williamson writes about real estate investment worldwide, to read more about property investment in Bahrain in 2007 and beyond visit her site http://www.amberlamb.com
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- Sbi Best Sip Plans 2010
SBI Mutual funds have introduced many mutual schemes. Each scheme has different limitations. SBI SIP - Icici Sip Plans 2010 - Best Sip Plans
ICICI Prudential offers many schemes. These fund schemes have SIP. What is SIP? SIP's expansion is S - Determining Where To Invest Money
There are several kinds of investments, also you will find numerous factors to find out where to inv - Retirement Plans A Necessity Of Life
A person works whole life to give a decent upbringing to his children and families. But while improv - Stock Market Timing Signals
Follow the PlanThis would seem a statement of common sense, but the fact of stock market timing sign - A Selection Of Financial And Investment Strategy Guidelines For Turning A Profit
Yet, we don't often have the money to leave work right at this moment. We need a constant salary to - Find Out The Profitable Way To Invest In Small Cap Stocks
Everyone wants to find a penny stocks list or other investment strategies that can turn your literal - Portfolio #4 - Watergate
IntroductionThe problem is not that the world is running out of water. No, the problem is that drink - Dulton Group: Information Content Of Dividends
Dulton Group helps you to analyze the information content of dividends, an important factor affectin - Coping With Fear In A Markets
The real fact is that all traders, investors as well as stock market investors, who feel afraid, occ
Most viewed articles in this category:
- Investor Stress: A New Approach
George Muzea is both an investor and a stock market advisor. In any given month, he will be paid $10 - Real Estate Investment Financing
1. Location: Your real estate investment's location is arguably the most important component of your - Canadian Oil Sands - Who Are the Major Players
The Canadian oil sands represent one of the most lucrative investment opportunities to oil and gas i - Why Bulk Preconstruction?
Bulk preconstruction is the latest trend in secure, high profit real estate investing. By buying wit - Investing - It Is Not As Scary As You Think
Many people want to have more money - OK everyone does. However, most people don't know how to go a - How Do I Know Which Programs Are Scams?
Although it is virtually impossible to tell if a HYIP is a scam until the moment when they stop payi - Currency Trading Success - 6 Tips to Increase your Profits
If you want to increase your profit potential and achieve currency trading success then the simple t - The Business Cycle
Investors who want to beat the market should be followers of the business cycle. The business cycle - Pros and Cons of Real Estate
Like any other profession, there are good and bad things about what are available. Each of the thin - The Fixer Upper
Real estate investing has become almost a national pastime. Millions are made every year on the buyi