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Economic Reasons to Invest in Bulgaria - property returns


Credit Growth

Recent liberalisation in the mortgage market means that financing a Bulgarian investment is now far easier than ever before and such options are not limited to the domestic market. Bulgarian banks are now offering more attractive mortgages and credit facilities. In 2006, the take-up rate on mortgage loans doubled and growth of 110% is expected over the next two years. At the end of the year, the mortgage market was worth 1.8 billion Euros but by 2009, it is expected to reach 3.8 billion Euros and mortgage loans, which currently make up 36 % of the total loan market, are expected to grow to nearly 45% by 2010.

More Bulgarian banks are now offering property services alongside the opportunity to provide mortgages and more easily accessible credit. The idea is to guide clients through the once bureaucratic maze of home ownership and finance and to make borrowing easier and more accepted.

Currently there are close to 120 different mortgage loans on offer on the market. CreditCenter expects this number to increase to at least 250 by the end of the year.

Bulgaria is considered to be one of the most rapidly advancing nations in Europe today.


It is renowned amongst foreign property investors for its interesting natural beauty, coastal and mountain resorts. Excellent property prices and high capital growth projections over the medium to long term, combined with Bulgaria's natural advantages of sun, sand, sea, skiing and beautiful naure, draw property investors, many of whom regard this thriving Eastern European location as still one of the world's best emerging markets.


Real Estate Returns

Bulgaria’s property market has seen some of the world’s highest annual increases in real estate with levels of around 30% per annum over the last three years. This year, prices have stabilised and this in turn has created a realistically sustainable property market.

Specialists in international real estate believe that the market still has room for sustained growth, which creates strong opportunities for medium and long term investors.

The key to high profits in Bulgaria is to stick in with the continued market growth for the long term as well as to consider engaging in buy-to-let schemes. As ever, the watchword is location, location, location.

Bulgaria is regarded as one of the fastest developing countries in Europe, yet it still offers exceptionally low residential property with good capital growth forecasts making it one of the world’s leading emerging markets.