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The EU effect - boosting the Bulgarian property market

Bulgarian Dreams highlights that since Bulgaria entered the European Union in January 2007 the country's residential property market has been boosted by increased sales and enquiries over last year.

The UK's leading specialist in marketing Bulgarian property, the company believes that EU membership has increased the confidence of overseas buyers, as well as help stabilize economic conditions which have led leading to increased foreign investment. Robert Jenkin, Managing Director of Bulgarian Dreams comments: “The credibility of the property market in Bulgaria with investors and second home owners has increased since the country joined the EU in January. Over the past five years, interest rates in Bulgaria have fallen from approximately 15% five years ago to 6% today and the increased economic stability provided by EU membership should start to lead to further reductions resulting in more affordable mortgages and an increase in capital values.”

Robert Jenkin continues: “We believe that the Bulgarian property market will follow the pattern of increased demand and rising prices experienced by central and eastern European countries, such as the Czech Republic and Slovakia, when they entered the EU in 2004. However, the EU's plans not to grant membership to any further countries until constitutional issues are resolved means that Bulgaria presents investors with the last chance for the foreseeable future to buy property in a country benefiting from the economic transformation that EU status brings.” Robert Jenkin says: “Although Bulgarian property prices have risen and are expected to do so further, the real long term benefit will be the inevitable maturing of the market. Currently the majority of UK buyers in Bulgaria are purchasing purely for investment with only occasional personal use, however over the next five years we anticipate an increase in the number of people buying holiday homes both in the coastal and mountain areas. As a result, the design, quality and facilities offered will increase and the next generation of developments will be on a par with anything built in more established locations such as France, Spain and Italy.”

Robert Jenkin concludes: “Since joining the EU, foreign funding in the form of loans have been invested in the country, with the immediate benefits going into the upgrading of the infrastructure and motorways. The main road from Sofia to Bankso has been completely transformed in a matter of months making getting from the capital to the ski resorts an altogether quicker and more enjoyable journey. The impending euro zone means lower interest rates, while the increasing number of flights to new destinations within Bulgaria, along with the anticipated arrival of budget airlines and the EU passport control has also helped boost tourism and the holiday home market.” Bulgarian Dreams is at the forefront of marketing innovative developments in Bulgaria and is currently selling a selection of mountain and coastal properties. The Orchard is Bansko’s most exclusive and chic new development located just 350 meters from the resort's main ski lifts and offers residents the benefit of Bulgaria's largest and most luxurious spa complex totaling 18,000 sqft. Comprising 500 studio, one and two bedroom apartments, and penthouses, the development also boasts an onsite cinema and ice rink. Cedar Lodge III is the closest residential development to the main ski lift and a five star scheme of 77 apartments.

On site facilities include an indoor swimming pool, gym, Jacuzzi, sauna, ski-room, 24 hour security, a fully licensed bar, restaurant and lounge area. Emulating Alpine mountain lodges, each property features wooden balconies with open plan interiors and many have spectacular views across the Pirin Mountains. Windows to Paradise is located on a stunning hillside in Balchik, offering a select collection of studios, one and two bedroom apartments and penthouses with the majority of the properties boasting incredible sea views. The facilities at the scheme include several outdoor swimming pools, full spa center with indoor pool, steam bath, sauna, Jacuzzi and children's pool. Set within landscaped botanical gardens, the scheme also features a restaurant and fully licensed bar, shops and a supermarket. A wine cellar, offering wine tasting evenings, provides free space for resident wine-buffs to keep their favorite bottles.

Prices at The Orchard start from €47,000 (£32,400, $63,421) for a studio, €88,400 (£60,900, $119,286) for a one bedroom apartment and €145,000 (£100,000, $195,661) for a two-bedroom duplex apartment. Prices for apartments at Cedar Lodge start at €35,000 (£23,333 $47,228) for a studio, €59,598 (£41,102, $80,420) for a one bedroom and €130,410 (£89,938, $175,973) for a two-bedroom. Prices at Windows To Paradise start from €38,546 (£26,583 $52,013) for a studio apartment, €57,902 (£39,932 $78,132) for a one bedroom apartment and €81,769 (£56,392 $110,338) for a two bedroom apartment. (