THE  BULGARIAN  REAL  ESTATE  MARKET

  Tourism

Bulgaria’s popularity as a prime investment destination has been the result of its overall low costs and degree of affordability coupled with word of mouth dissemination and a solid record of good practices. Investment has been the incentive for most buyers in Bulgaria. However, a new trend is emerging where a large number of people opt to use their real estate for seasonal vacationing, relocating, establishing a small business or as in many instances for retirement. As well, investing in real estate is motivated by the desire to secure an additional source of income and/or profit. A lot of elderly people have chosen Bulgaria as the optimal retirement destination based on the fact that they can make their pensions stretch much further. Investing in real estate can also open the door to a lot of business opportunities for both young and elderly people. Options like opening up a quaint Bed & Breakfast could maximize any investment.

Tourism plays a large part in the success of Bulgaria’s economy – becoming the fastest growing tourist economy in Europe. Tourism accounts for 12% of Bulgaria’s GDP today. The growth of the tourist sector together with the low property prices affirm the country’s position as the world’s most exciting emerging property market – attracting interest from investors all over the world.
Bulgaria has become a popular destination because of its proximity to both northern and western European countries and its significantly warmer climate.

Increasing numbers of Eastern as well as Northern European visitors have been observed. The rise in tourists is partly due to the fact that the country is easily accessible while holding a certain "mystery" for the traveller related to its history and culture. Since Bulgaria’s acceptance to the EU, many airlines have responded to the demand and expanded their routes throughout the country. This remarkable stride on behalf of the world´s two largest low-cost carriers signals an increased confidence in Bulgaria as a major tourist destination. It is widely believed that this will result in an increased flow of new tourists will chose Bulgaria as a value-for-money destination. This could contribute to a growing number of property buyers. Aside from facilitating travel, the economy will receive a further boost from money flowing in as part of EU commitments – the "structural funds" aimed towards the improvement of infrastructure and bridging the gap of neighbouring states.

There are three categories of real estate, which are currently most in demand: