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Bulgaria’s property market keeps up the momentum

Thursday, Apr 03, 2008

The popularity of buying property in Bulgaria doesn’t seem to have slowed down, as figures will show, the property market reached a massive 32% increase overall in 2007, a much increased number on that which was expected. This, says Principal International, is good news for our investors and the momentum in 2008 is still in keeping with last years recorded strength.
The 5.6million Euro construction boom developing luxury apartments and retail and administrative buildings is fuelling the economic growth, and with it the good mortgage market that is underpinning the countries stability, showing that it remains untouched by the sub prime lending crisis which has affected financial markets around the rest of the world.
The Economist is forecasting a consistent 6.4% GDP growth in the economy year on year and with the recent changes to both income and corporate tax being set at a 10% flat rate for all workers, investors and companies regardless of income or profit values, the property market slowdown is not likely any time soon.
Principal International has been offering investors the chance to buy in Bulgaria since the boom began, and whilst prices are steadily increasing, the interest from British buyers remains undeterred. Gary Clayton at Principal International says “with prices still remaining firmly below many of the other Eastern European countries, Bulgaria continues to offer good value for money. There is a huge development programme still ongoing to boost the countries tourism and business community, and whilst the government remains committed and foreign investment still flows into Bulgaria, there is money to be made both in capital growth and rental yield.”
Low cost airline Wizz Air and Aer Lingus have both recently announced additional and new routes into Bulgaria, further opening up the market to increased traffic and adding to the already booming numbers of tourists.

Source: www.econ.bg