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Is It Still Possible to Profit from Property in Bulgaria?

The general change in the consensus of opinion relating to the attraction of Bulgarian real estate - or lack of it - came about as the annual rate of potential capital appreciation achievable from property dropped from triple digits in 2005 to double digits so far in 2006 – but yet again, let's put that into perspective...yes, at its height the Bulgarian property market was growing so fast that a selective investment made into property could return an investor over 100% gains in one year, but today as base underlying prices have risen from their incredibly low starting point, annual average capital growth is a more realistic but still highly attractive 30 – 35%.

What the media and many property analysts have got entirely right is that it is not possible to profit or generate an income from every single property in Bulgaria and this is perhaps where mistakes have been made in the past – such was the frenzy surrounding the exciting rate at which the property market was expanding in Bulgaria that investors believed they could buy any old piece of real estate and rent it out or flip it and resell it for strong gains. Naturally enough, now that the market in Bulgaria is maturing the old essential aspects of location, location, location have come into effect and only the best located and most desirable properties will let and resell easily making the Bulgarian property market less of an emerging temptation and more of a mature opportunity.

There exists a genuine and growing demand for property in Bulgaria for sale, that tourism in Bulgaria is growing in a sustainable way by up to 22% annually, that double digit capital growth is forecast by leading property analysts for the medium term, that the government of Bulgaria and private investors are continuing to plough substantial funds into the improvement of attractions and infrastructure across the nation and that prices for attractive properties with the best potential for rent and resale are still incredibly low compared to markets such as France, Italy, Spain and Portugal meaning that not only is the Bulgaria property market accessible for more people it is likely to prove profitable for many years to come...