Real Estate Property Investment Series - Focus Bulgaria 2007

Bulgaria will become a fully fledged member of theconstruct logistics and warehousing in Sofia as well in
European Union on the 1st of January 2007 and this2007.
will have a dramatic impact not only on the residentialRetailers' demand for land is going to go head to
property market in Bulgaria but also on thehead with residential developers' demand for land in
commercial marketplace with the retail, warehousingthe main commercial centers and resorts and this will
and logistics sectors especially affording investorsforce land prices up which will inflate the prices of
plenty of diversity when it comes to developing aproperties for sale...buyers need to get in ahead of
profitable property portfolio.this price push and 2007 is the year when they need
To put it simply, 2007 could well be the year whento move quickly.
Bulgaria stops emerging as a nation and it finallyThere are further factors that will inflate house prices
arrives as a top destination with strong real estatein Bulgaria from 2007 onwards - with EU entry comes
investment opportunity supported by a local societya requirement to adhere to EU rules and regulations
growing in affluence and backed up by a strongand these rules and regulations don't come cheap!
tourism market and fledgling international expatriateConstructors will need to upgrade materials used and
and retiree demand.also safety standards in place. Furthermore Bulgarian
Prior to the very recent announcement that Bulgarialabour can now begin demanding equal rates of pay
really would join the European Union in 2007, thosewith their EU counterparts and on top of this,
who bought property in Bulgaria were seen ascommodities such as electricity are set to increase in
speculators banking on the nation being accepted as2007. The National Construction Federation has
a fully paid up member. These investors naturallyestimated that in 2007 alone 5% will be added to the
took a great deal of profit from the market whenprice of construction because of all of these factors.
the announcement came through. Subsequently thereThis will affect those who come to the market late
have been many media reports that there is no moreand anyone hoping to tap into a society growing in
room for profits to be made - but that is anaffluence and demanding more and better
incredibly short sighted view to take! Sure, theaccommodation as well as a tourism market that is
speculators have been there, done that and derivedrapidly expanding need to move quickly in Bulgaria if
double digit returns on investment each year to datethey want to profit fully. It is estimated by many
- but going forward there are many fundamentalexperts in the Bulgarian property market that there is
factors underpinning the ongoing profitability ofa window of maximum opportunity currently that will
property in Bulgaria.last until 2010 after which point the Bulgarian property
For example, with EU entry comes massivemarket will have met demand with supply, property
investment and the ability for companies andprices will meet affordability and short term strong
commercial operations from across Europe to set upgains will be far less achievable.
operations in Bulgaria or to begin trading moreFinally, changes to the Bulgarian constitution to allow
intensely with Bulgaria. One of the main propertystraightforward foreign ownership of real estate
market sectors set to expand significantly as a resulthave been made but not yet enacted and while this
is the retail sector - a company like Technopolisremains the case there will exist in many people's
Bulgaria is perfect to demonstrate the direction manyminds additional risk or unsatisfactory levels of
retailers are planning on taking in 2007. Technopolisadministrative hassle associated with buying property
Bulgaria is a company part German and part Bulgarianin Bulgaria which one has to do via a limited company
owned that is already dominant in its consumerstructure. This will keep prices competitive until the
electronics market sector and which already owns 11constitutional changes become law which is estimated
mega stores across the country but which, in 2007,to happen somewhere between 2010 and 2014. This
has plans to begin building hypermarkets. Not onlymeans that those who commit now can buy in ahead
this, they have further plans to expand acrossof a potential boom in property transactions which
Bulgaria's borders and they are just one in anwill most likely occur when it becomes simple to buy
incredibly long line of retailers with plans in place toand own land and property in Bulgaria.