Bulgaria: An Overview

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Bulgaria is a small, picturesque country situated in southeastern Europe , which occupies the northeastern part of the Balkan Peninsula . With origins dating back more than 13 centuries, it is known as one of the cradles of European civilization. Part of the Eastern Bloc after World War II, today Bulgaria is a democratic, unitary, constitutional republic, a member of NATO, and recently became a full member of the European Union in 2007.

Due to its location, Bulgaria is known as the link to Eastern and Western Europe and borders five countries: Romania to the north mostly along the Danube, Serbia and the Republic of Macedonia to the west, and Greece and Turkey to the south, as well as the Black Sea, which comprises its entire eastern border.

From the Balkan Mountains to the Black Sea, its geographic landscape is enveloped in extremes, with the Balkans running west to east through the middle of the country. Hilly terrain and plains are found in the southeast, along the Black Sea coast in the east, and along Bulgaria 's main river, the Danube in the north. Bulgaria ’s current population is nearly 7.7 million and its largest city and capital is Sofia.

Weather

Bulgaria has a temperate climate with four distinct seasons, highlighted by cold damp winters and hot dry summers at the extremes. During the summer months, the temperatures average 75 F (24 C) and benefit from low to moderate humidity, with May and June being the wettest months. A maritime climate can be experienced along the coast. Winter temperatures average around 32 F (0 C), with November receiving the greatest average precipitation. More Info >>

Economy

Since Bulgaria joined the World Trade Organization in late 1996, the country has emerged from a number of unfavorable conditions that helped stunt its economic growth and has since benefited from a stable market economy with GDP growing consistently at 4% to 5%, plus increased foreign investment. As of 2007 the economy continues to grow steadily at above 5% a year. The country boasts the second highest standard of living in Southeastern Europe in terms of GDP per capita, inflation is under control and unemployment is steadily declining.

Future prospects are tied to the country's increasingly important integration with the European Union member states. The country entered the European Union in January 2007 and as a result of its upward mobility, is expected to join the Eurozone sometime between 2010 and 2012, with plans for the Bulgarian Lev to be replaced by the Euro during that time. By comparison, the majority of EU member states, which are currently struggling with the Eurozone criteria, are expected to join the single currency union later than 2011.

Industry is very important to the economy. Bulgaria is a major producer and exporter of electricity and the country is among the top ten in the world for agricultural production per capita, and remains on the upswing in recent years, based on information provided by the National Statistical Institute of Bulgaria.

Tourism

Bulgaria is rich in cultural and archeological sites and offers plenty of opportunity for cultural tourism all throughout the country. The most popular form of tourism takes the form of numerous, family friendly resort offerings. Owing to its favorable location that yields seasonal popularity from the mountains to the sea, Bulgaria continues to enjoy an upsurge in tourism growth as visitors from neighboring countries seek an attractive and affordable vacation destination.

Travelers, particularly those from Western Europe, can choose from a variety of outings throughout the year, from the burgeoning summer and ski resort locations, spa resorts, and in recent years, a new trend in a more localized or “Ethno” tourism where visitors can explore living among the locals. For the last several years, the country's tourism industry has seen a double-digit growth trend, accounting for 16% of its GDP in 2006, when it welcomed some five million foreign visitors.

Land of Opportunity

Bulgaria map Foreigners can purchase property in Bulgaria directly or through a local company, but cannot own the land outright. Only Bulgarian residents and entities can own land, while non-residents may only acquire buildings. Therefore if foreign citizens want to invest in property in Bulgaria , they must register as a Bulgarian-based company.

The law does not limit the extent or amount of foreign participation in companies. Foreign individuals and companies can open an unlimited number of accounts in any Bulgarian bank, in any hard currency or the local Bulgarian Lev. There has been discussion that the Bulgarian Constitution may be changed to permit foreigners to purchase land rights as well without registering a local company first.

Real Estate

Property in Bulgaria is the fastest growing asset in the country. Buyers come mainly from across Europe and the UK , encouraged by relatively inexpensive prices and ease of accessibility. Bulgarian real estate has been a quickly growing asset, the sales of which contribute greatly to the country’s rising GDP. In 2006, property prices increased more than 25% up to 50%, led by properties in the capital of Sofia, the Black Sea beach resorts, and ski resorts.

The improved economic conditions, political and social stability in Bulgaria during the last few years brought a sharp increase to property values. Foreigners and companies with foreign shareholders bought real estate worth 310 million Euros in the first quarter of 2007 according to the Bulgarian National Bank. The figure is a 63% increase over the same period of 2006, when foreigners’ share in the Bulgarian real estate market was estimated at 190 million. Property investments accounted for nearly 40% of all foreign direct investment in the first quarter of 2007.

Selling Points

The increase of tourism in the country has had a major impact on the real estate market, owing much to Bulgaria's varied topography, taking advantage of an abundance of natural attractions from the mountains to the coast to the unspoiled rural areas in between. Combined with the country’s recent ascension into the European Union, the groundwork has been laid for continued development of both the tourism industry and property market in step.

There has been discussion that the Bulgarian Constitution will be changed to permit foreigners to purchase property individually without the necessity of registering a local company first. This limiting of restrictions should increase the appeal for foreign purchasers that may have previously avoided such transactions for fear of legal hurdles and perceived inefficiencies. Once the law is changed, it is very likely it will provide a catalyst for an even stronger surge in property prices.

While many gains have been made by Bulgarian property investors the last few years, it is still a country that’s ripe for a breakthrough in the years to come. Bulgaria is a politically stable country with a growing economy, and the longer term effects of EU membership should have a far reaching impact on the country’s developmental structure, widening the potential for international trade, tourism and economic well-being.

Bulgarian laws are improving and changing in accordance with the laws in the countries of the European Union and the country already has one of the most liberal foreign investment laws in the region. The fact remains, Bulgaria is still a very inexpensive proposition to most of the rest of Europe for real estate investment and growth potential. The country’s maturing real estate market has maintained a steady a 20-24% annual growth rate that should only increase in time.

Properties in Bulgaria

More and more people are exploring Bulgaria as the country continues to progress and benefit from increasing tourism, governmental stability and favorable press. It is widely considered to be among Eastern Europe's best investment opportunities. Based on our research and local connections, we are proud to present a variety of real estate investment options through our valued partnership with Bulgarian Properties.

Bulgarian Properties offers one-stop service for buying your apartment, house, land, office, hotel or business in Bulgaria. Their live, easily searchable database contains several thousand properties for sale and rent in all areas of the country. Through our cooperation with Bulgarian Properties, Vinnie's World is well-equipped to offer visitors local service along with on-the-ground information and a variety of purchasing options and follow up services.

You'll find the widest selection of off-plan apartments, rural and village houses, developmental land, commercial properties, holiday homes in the acclaimed ski and beach resorts, city apartments and real estate investment opportunities combining exceptionally low prices with superior growth prospects.

Contact Us

Have you wanted to develop a presence in Bulgaria and tap into its booming economy and bright future? We can assist you. Here at Vinnie's World, Eastern Europe is one of our primary areas of coverage and between our growing local team and our network of professionals in Bulgaria, we can locate the ideal commercial or residential property and guide you through the business process.

To learn more about property buying opportunities for your business in Bulgaria, please contact us: euroventures@vinniesworld.com