Because of tourism Burgas region in Bulgaria has become the beating heart of the property industry in Bulgaria because it attracts tens of thousands of tourists on the beautiful beaches of the resorts Sunny Beach, Sozopol and others, and thanks to the favorable prices, the online edition TheMoveChannel.com writes in a presentation on the investment market in the region.
In the summer, Bulgarians and foreigners are increasingly looking for rentals. Foreigners can see British, French, Czech, Romanian, Poles, Austrians and others.
For foreign investors, the Bulgarian property market has always been tied to the tourism industry, the newspaper said. At the same time, the international attractiveness of the country has never been so great. In March 2017, the number of foreign arrivals in Bulgaria increased by more than 20%, shows national statistics. The trend is for the continued growth of foreign tourists.
Along with the beautiful beaches of Bulgaria, prices in the country are also a key part of this growing attractiveness. In the annual index for 2017 on the tourist site Nora Sunny Beach, for example, is ranked as the cheapest tourist destination in the world. It is therefore not surprising that the total number of nights spent in all types of tourist accommodation is continuously increasing.
With the strengthening of the Bulgarian economy, the holiday property market attracts more and more investors. And at a time when the rules on the British market are tightening and spending rises.
Low property prices in the Balkan country and low interest rates on loans (4.5% on average) support foreign interest. For British investors, the chance to offset the weakening of the pound after the EU's exit from the EU is particularly attractive, the release notes.
The strongest growth in real estate transactions is reported in the capital Sofia, quoted the latest statistics. In the districts of Bourgas and Varna there is also an increase of 5-10%.
Over 30% of all property inquiries in Bulgaria in 2016 are for Bourgas District. Another 13% are in Varna District, ie. The Bulgarian Black Sea coast attracts about half of the investment activity.
Bulgaria is also among the 15 most popular destinations in the world for holiday home investment in five of the past six months.
Rental income has strong growth potential because of the country's affordable lifestyle. The growth in the capital value of properties also strengthens ownership. In the fourth quarter of 2016 house prices in the country grew by 8.1%, compared with 2.4% in the last three months of 2015 and above the 4.7% average for the EU.
Business properties in Bulgaria are also quite popular among investors, according to TheMoveChannel.com. The strong tourist market opens up opportunities for affordable prices in the hotel sector in the country.
In February 2017, official data show that total tourist accommodation in Bulgaria jumped by 7% annually to 45.8 million leva. Revenue from foreign visitors, however, doubled faster - by 14%, the newspaper reports. At the same time, accommodation and beds are slightly down.
With an increase in employment of about 1.6 percentage points per year, there is an increasing potential for improving investors' earnings in commercial property, the paper concludes. In Sozopol, for example, a hotel's employment rate increases from 56% in 2014 to 59% in 2015, with the forecast being 70% in 2016.
Bulgaria is traditionally a popular market for Russian property investors and other buyers from Eastern Europe. A significant number of deals are carried out by local investors, which is a sign of increasing confidence in the housing market in the country.
British buyers who want to find more affordable opportunities to counteract the weakness of the pound are also looking for the country's tourist spots for profitable investment, both residential and business.