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Agricultural land most attractive property in Bulgaria, consultancy firm says

Wednesday, Jul 16, 2008

Holiday resorts and big Bulgarian cities do not seem such an attractive investment opportunity for foreign property investors any longer. Now, an increasing number of private and institutional investors see more value and profitability in agricultural and development land, consultants at Sash Property Solutions (SPS) said as quoted by nubricks.com, UK property blog.
SPS does an independent research of the Bulgarian real estate market and its recent findings showed that prices of agricultural land had risen by 40 per cent. The consultant company attributed this new trend to the lower risk and less involvement for potential buyers as opposed to buy-to-let and commercial properties. Compared to other European countries, agricultural land in Bulgaria was more than two times cheaper.
The tendency was to buy agricultural land in an attractive location, go through the process of regulation and re-sell it for a handsome profit, SPS advised. The downside of this procedure was the regulation process, which turned out to be a long, frustrating and time-consuming effort.
Nubricks.com quoted a former investor in agricultural land near Bourgas, who bought the property for nine euro a sq m. Two years later, after completing the regulation procedure, the owner sold the plot for 60 euro a sq m to a developer whose intention was to build holiday houses.
The property consultants also suggested that land in the periphery of the big cities appeared to be a good investment as well. Most cities’ development planning would soon feature enlargement toward the available vicinity plots. In a long run, the land price will increase and generate an easy profit at minimum risk, SPS said.

Source: PropertyWise Bulgaria