The Sofia News Agency (26 Oct 2005) writes that home prices in Bulgaria's regional centres have increased 1.5 to 3 times over the last five years. This is obviously welcome news for all investors who have bought property in the Bulgarian market. It will also be reassuring for those considering a future real estate investment in the country.
Such high levels of growth are unprecedented in normal market situations and it is clear to see that the Bulgarian property market can in no way be described as “normal” at the moment. Typically, a property will double in value within the timeframe of between 8 to 10 years. This takes into account both cycles of growth and decline in which time the overall movement is a doubling of the property’s’ value.
For the Bulgarian property market to show signs of up to 200% growth in only a 5 year period signals the increasing confidence in the country’s prospects. The Bulgarian stock market has also tripled over the past two years in anticipation of imminent EU membership in 2007.
Bulgaria’s government has recently approved amendments to the Excise Duties Act to increase the excises on alcohol and cigarettes. The amendments are in line with the EU taxation law and Bulgaria has committed to reaching the minimal EU excises on a step-by-step basis. In accordance with the entry to the Eurozone (€) planned in 2009, Bulgaria has speeded up the pace of excise revision. In a promising gesture, EU finance ministers have signalled the euro coins will feature the state emblems of Bulgaria as of 2007.
In summary, a booming property market with strong international investment, a doubling in value of the local stock market and the determination of both the government and EU ministers for the country to meet the EU membership criteria by the agreed date of 2007 all indicate a strong economic future for Bulgaria.
Tim Wright is an international property investor and regular article contributor. He is the author of “Bulgarian Property - The Overseas Buyers’ Kit” available at http://www.bulgarianpropertybuyer.co.uk