Bulgaria

Bulgaria is one of the most talked about of the “emerging market” destinations. Go to any foreign property show and a substantial proportion of the exhibitors will be selling Bulgaria as the “New Spain”. This has been reflected in property prices, which shot up by 45% in 2004 and an estimated 14-24% last year. Such rises have been underpinned by the strong performance of the country’s economy: GDP rose by 5.7% in 2005. Bulgaria’s entry into the European Union on Jan 1, 2007 gave another incentive to buy. It also looks likely to lead to the arrival of the low cost airlines which, hitherto, have not been able to fly there. Much of the interest has so far been concentrated on the Black Sea coast resorts; prices there have been rising steeply, although you should bear in mind the rental season is far shorter than in Spain. With all this new building going on, it also pays to choose your property carefully. The yields may be higher in ski resorts such as Bansko, Pamporovo and Borovets. Sofia, the capital, is attractive for those looking to rent out long term to expats.

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