Property development, both residential and commercial, offers an excellent investment opportunity in Bulgaria.
The gross margin between construction cost and the final sale proceeds can range from 60% to 100%, and selling times are very short for property types matching local market demand.
In Sofia, the supply of certain types of housing falls far short of demand.
Following the speculative bubble of 2006, when property values rose by over 100%, the property market has been recovering steadily at around 4–5% annually, with strong growth potential.
Property prices vary greatly between the most populous cities and peripheral and rural areas.
The market is currently growing, as confirmed by all recent statistical surveys from late 2014 and the first quarter of 2015.
Rental yields may range from 6% to 8% a year; yields on office properties are slightly higher.
Investing today will allow very attractive returns when the euro is also adopted in Bulgaria. Given the fixed exchange rate of BGN 1.95 to €1, it is possible to envisage property values following the same trend as in Italy after the introduction of the euro and the resulting doubling of property values.
Our law firm in Bulgaria is in contact with leading architecture and design firms, turnkey construction companies and property agents.
To maximise your investment, you need to rely on reputable partners, understand the market and avoid improvisation or entrusting matters to whichever fixer happens to be available.
All checks on the land and buildings, and on the existence of registered entries or pending litigation, are always necessary. It is also essential to examine the terms and subject matter of the sale carefully when executing the notarial deed... It is easy to be tempted to save on professional advice by trusting the seller’s good faith, only to end up with a sale agreement containing unpleasant surprises!!!