Reasons to invest in Bulgaria

We are not going to spread on the real-estate situation in Europe, we believe that a great number of information exist already and report in the matter and it is clear that the future to short / edium term of the real-estate european market is like at least, uncertain. Centring on Bulgaria and concretly on the reasons that do that it is a very interesting country to invest it is necessary to emphasize first that Bulgaria is just now the country with minor GDP per head of the EU, 4.137$ in 2006 *.

From its entry in the EU, On January 1, 2007 , Bulgaria has begun to receive funds of cohesion: 1.144 Million Euros in 2007, and it has foreseen to receive 1.555 in 2008 and 1.891 in 2009*. Besides the European funds, other transfers are going to exist to Bulgaria. Their low taxes , 10 %, and wages will attract, already they do it, companies and centers of production. The tourism in the Black Sea and in ski resorts will have every year more importance as communications and services improve.

One factor that will have a great repercussion is the generalization of the use of mortgages , now few used. The majority of Bulgarian families does not have mortgage, they are propietary to 100 % of their house. Then they have aptitude to get into debt. If we combine all these factors, we can extrapolate with safely more than reasonable that Bulgaria is going to approach the average revenue of the EU . From current 37% they might reach as minimum, 60% in five or six years. Another conclusion is the real-estate market will be very active . But risks exist also, there are zones with foreign overinvestment, buildings that do not have the required quality, intermediaries and slightly trustworthy builders, laws different and others. It is absolutely necessary to select adequately what Zones to invest, what kind of properties and what builders or intermediaries .