Bulgaria has a lot of the characteristics of a country you want to invest in property in: high growth potential, high certainty of growth and a population that will likely get more and more money on their hands as time goes. This makes Bulgaria an excellent country to invest in.
Investments in property
To make investments in property is in general relatively safe – as long as its done in places with population growth. Urban areas – or other areas of development – are therefore considered the best targets for investors.
There are at least three reasons why investments in property tend to be both desired and safe:
1) Since capitalism most of the time leads to growth, the value of property also increases because people end up being able to pay more for housing. If urban areas have population growth too, the tendency is strengthened both because more people will gradually demand housing (which means a tendency for prices to be pushed upwards) and because apartments in desirable areas become more sought after. Having such an apartment is therefore desirable.
2) Property will almost never fall towards zero in value. There is virtually no chance that it will not survive poor economic times. For people who are able to hang on to properties in worse economic times, it is therefore safer than investing in stocks, for example, because companies can go bankrupt.
3) Some countries have tax laws that make it better to own property than to have money.
What makes Bulgaria great?
The primary reason why Bulgarian property is a great investment is that the country recently became a member of the European Union. All countries of the former communist bloc in Europe that have become members of the EU have seen their economy grow at extremely high rates. This is the case also for Bulgaria. Between 2003 and 2009, the growth rate was never below 4,3 percent and although the economy shrank in 2010, it is expected to pick up again in 2011. Since the country became a member of the Union in 2007 and since it is among the poorer countries in the EU, the growth rate should over time pick up and the economy will likely grow even faster. With wage increases, it is likely that property investments can therefore pay off quite well.
Sources
Indexmundi.com: Bulgaria GDP. Retrieved December 17, 2010
URL : http://www.indexmundi.com/bulgaria/gdp_real_growth_rate.html
Wikipedia.org: List of countries by future GDP (PPP) per capita estimates. Retrieved December 17, 2010
URL : http://en.wikipedia.org/wiki/List_of_countries_by_future_GDP_per_capita_estimates_(PPP)