Want to Invest Smart In a Time of Crisis? Buy Real Estate in Bulgaria
They say that a time of crisis reveals the biggest of opportunities one could realize, and we could not agree more. While some see trouble, others know that chaos is the time to act.
This is nothing but true when it comes to real estate investments. The world today faces an unprecedented crisis that will eventually come to an end, but the question is: what to do in the meantime?
We have the answer for you! Invest in real estate, but do it smartly. We also have some advice on the matter that you would probably find too interesting to miss.
Those who are keen on investing know when and how to act, but we know the majority of people would appreciate a hint or two. Let’s take a look at a property market full of opportunity: Bulgaria.
Why Should You Invest in Bulgaria?
There is a long list of facts and figures about the beautiful Balkan country that could easily spark your interest. Bulgaria became a democratic country and has come a long way in the last three decades.
After suffering a serious economic collapse in 1997, the country slowly began to rise. In the dawn of the new millennia, its economy had already begun growing faster than ever.
Between 2000 and 2008, real estate prices jumped by an average of 300%. Unfortunately, the 2007/2008 global financial crisis paused the country’s growth. Thankfully, that did not last long, and in a matter of a few years, Bulgaria showed very positive signs of recovery. The real estate market was back on track by 2014, and it hasn’t shown any signs of stopping since.
Of course, the current situation with the COVID-19 pandemic would likely interfere with the trend, and this is where the opportunity lies. Once the coronavirus outbreak is behind us and the markets start to recover, the Bulgarian real estate market is likely to grow even more, as the last two decades suggest.
Investing in Real Estate Is Never a Bad Idea
Trying to find a safe way to invest? Choose real estate because there is hardly a better asset type for that purpose.
Most experts out there will tell you to find a consultant when looking forward to investing in foreign real estate markets, and that is a good piece of advice. This is one way we, at Harmony Suites, can be very helpful when it comes to sourcing, acquiring, and managing property in Bulgaria.
The first thing to do when trying to find the best piece of real estate to put your money in is to design a concept that suits you best. Assessing the economic environment and making sure you set the correct budget are the important initial steps of the process. Knowing the reason why you want to invest in the first place is key.
Next, you need to select the type of property based on the return you expect from your investment. The good news about this step is that Bulgaria has it all in terms of attractive property types: you can buy a condo in a big city, a vacation home in a resort near the sea, or a rural property. There is also plenty of commercial real estate to invest in.
Types of Bulgarian Property to Invest in
With its strategic location, Bulgaria is an exotic and attractive destination for investors from all over the world. Located on the Balkan peninsula, the country is surrounded by five neighboring countries, the Danube river, and the Black sea. It is the bridge between Europe and Asia.
The country offers a chance for creating a diverse investment portfolio regardless of whether you intend to buy a vacation home or flip the property within a relatively short time frame. There are plenty of factors making the country an attractive and even exotic destination to invest in:
- Sofia, the capital city, is a modern European business hub, offering many exclusive deals (current population: approximately 1,4 million).
- Two of the top five biggest cities in the country - Varna and Burgas – are located on the seashore.
- There are numerous sea and mountain resorts. The country has nearly 400 kilometers of shoreline, of which 200 kilometers are sandy beaches, and a total of 39 mountains, with more than 300 mountain peaks rising above the 2,000-meter mark.
- Hundreds of national parks, historical monuments, landmarks, and sites shape the country’s identity.
- There are four modern airports and two seaports currently operating.
- Hundreds of lakes and rivers are there for tourists and visitors to see and admire.
Since the country joined the EU back in 2007, there have been huge signs of improvement in nearly every possible area. The Bulgarians can confirm the continuously developed infrastructure: urban areas, highways, and communications structures are being perfected as you read this text.
The increasing amount of foreign investments have improved people’s lives. What’s more, there is room for much more improvement, too, as the country has a lot more to offer.
The Growing Real Estate Market Has Yet to Reveal Its Biggest Opportunities
As we already mentioned, the last couple of decades have been nothing but dynamic for Bulgaria. The country has proven to be able to withstand a time of crisis.
This, of course, is valid for its real estate market. The sector was booming until 2008 and despite the following rough years, it recovered faster than many other European markets did.
Since it began growing strong again in 2014, a lot has been done for improving its stability. The newly-developed construction projects all over the country were not as many as they were prior to the 2007/2008 crisis, which lead to a higher demand than expected. In some locations, up to 60% of all newly-constructed dwellings were bought off-plan.
Trends are changing as well. For example, some of the ski-resorts, which are typically busy during fall and winter, have now become popular all-year-round.
Bulgaria is a relatively small country and living in a small town, a resort, or even in a village is likely to be an attractive opportunity, as it would most likely be near a bigger town or city. Speaking of this, you need to know that a few hours of highway driving could get you from the seashore to a mountain resort. This is just how diverse the country is in terms of opportunity.
The Economic and Market Factors Encouraging Foreign Investments
The stable and continuous economic growth of the country is a strong factor that needs to be considered as well.
Since 2007, the country has benefitted from becoming a member of the European Union in more ways than one. The government made arrangements and, as of 2012, all EU and EEA citizens are eligible for acquiring property, including land. Other foreigners need to register a form of legal entity first, which is something we help our clients with all the time.
The procedures related to performing all necessary checks, finding the perfect property, acquiring it, and processing the related documentation are more or less complicated, but we, at Harmony Suites, can take care of everything for you.
While major investors looking forward to relocating or expanding their businesses in Bulgaria are attracted by the low tax rates and the competitive labor costs, those willing to invest in the country’s real estate benefit greatly as well.
Apart from the low taxes, the local property market offers some of the most affordable deals in all of Europe.
In regard to price/quality ratio, the country hardly has any competition. You can buy any kind of property for a fraction of the price of a comparable one located in any other country among the EU members.
Being one of the last to join the Union, Bulgaria has a lot of potential in terms of development, meaning that the prices are also likely to go higher. Keep in mind that dwellings’ prices doubled and even tripled between 2000 and 2008.
Of course, such a pattern is unlikely to be repeated once the real estate market overcomes whatever the COVID-19 aftermath brings. One thing is for sure, though: prices will go up, and we have yet to see if they will go down in the following months.
What Is the Best Time to Invest in Bulgarian Real Estate?
Considering the current situation across the globe, predicting anything with certainty is impossible, but we know a thing or two about the real estate market in Bulgaria.
There are numerous ongoing construction projects all over the country. Luckily, construction was one of the sectors that was not affected by the state of emergency declared in Bulgaria more than a month ago.
This ultimately means that the rate in which new deals are offered on the market would be at its usual level in the next few months. Given the fact that demand is likely to decrease, we can assume that prices will go down, and this is when the time to invest will come.
Analysts have different theories about the exact figures of the expected price drop, but one thing is for sure: your chances of making a higher profit in the future are growing by the minute.
Once the state of emergency is canceled and life starts going back to normal, some will feel like the situation is unusually chaotic. Others like you will surely see through that and take advantage of it.
This is one of the important reasons why we encourage you to consider all the possibilities Bulgaria hides. We are here to give you all the details needed and to create a strategy for your future investment.
In a nutshell, this is what you need to remember:
- Bulgaria is a fast-developing European country with a growing economy, strategic location, and many benefits and factors that attract foreign investors from all across the globe;
- The country’s real estate market has been on the rise for years, and it is likely to continue its path upwards after the COVID-19 crisis is over;
- Price levels are still ridiculously low compared to most European countries, creating many different opportunities;
- The expected decrease in real estate prices would make any investment even more profitable than it already was prior to the coronavirus outbreak.
There are many other reasons why investing in Bulgarian real estate is nothing but a smart idea, and we are here to provide you with everything you need to invest and enjoy a hefty profit later.
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