Before the EU's fifth enlargement NATO Secretary General Jaap de Hoop Scheffer compared “Old Europe” to a pensioner who needed transfusions of fresh ideas from the 10 incoming central and eastern European members.
Few people gauged his meaning until the second wave of the fifth enlargement, when it transpired that the 12 additional entrants provided welcome news to property investors.
“Get to know Bulgaria so that you grow to love Sofia” was a popular saying in the Communist era. Foreigners can only understand its meaning if they lived in the country before 1989. But the unspoken message was clear: “Choose the capital if you want to enjoy a decent life, while the rest of Bulgaria is losers' territory”.
Bulgaria's economy has continued to grow steadily so far this year, with analysts and the International Monetary Fund (IMF) predicting Gross Domestic Product (GDP) growth of over six percent by the end of the year. Foreign Direct Investment (FDI) continues to be a key driver of economic growth, unemployment continues to fall and inflation is under control. However, Bulgaria's current account deficit is still growing and the IMF warned that the government must continue to keep a firm hold on the fiscal reins to avoid driving it up.
Many more nationalities are expected to invest in Bulgaria over the next few years since its accession to the EU. Now that Bulgaria is safely inside “The Club”, outsiders are more confident about pouring money into the country's real estate sector.
Seven months after EU entry, it's still difficult to analyse Bulgaria's real estate market because of the lack of reliable data. So I recommend buyers to discriminate and check out those areas with improved access routes. Recent extensions to Sofia's metro, including a line from Mladost to the airport, are the kind of developments that lead to increasing property prices and other bonuses such as the arrival of new low-cost airline routes.
Bulgaria's biofuels industry has only been operating for a couple of years. But already around 25 installations are in place and many firms are lining up to exploit the competitive assets of relatively low-cost farming and labour as well as expected subsidies and incentives. The biofuels industry (fuel deriving from biological material) is now sufficiently big for traders to note an upward pull on the price of that great Bulgarian staple - sunflower oil.
Bulgaria's economic future is bright, but it must be prepared to handle the pressures of globalisation, says Michael Deppler, director of the International Monetary Fund's (IMF) European Department. His comments came in the authoritative The Report: Emerging Bulgaria 2007, produced by Oxford Business Group (OBG), the UK-based publishing research and consultancy service.
Last year Sofia was the site of about 60 percent of all foreign real estate purchases. This continues a three-year trend that has seen investing in the capital become more profitable than doing so at the seaside.
As Serbia celebrated a modern day miracle, here in Bulgaria we can at least derive some solace from the fact that the property market is nowhere near as erratic as the voting in May's Eurovision Song Contest!
If you're thinking of investing in Bulgarian property, then you should first establish whether you're investing for capital appreciation, rental income or an amicable marriage of both. This decision will steer you to the most suitable type of investment.
A positive surge is taking place as companies invest in the Varna region, in northeastern Bulgaria, with projects for shopping malls, office complexes and logistics centres.
Rating agency Standard and Poor's (S&P) announced it had raised its long-term issue credit rating for Varna to BB+ from BB, declaring the city's outlook is "stable" and praising its "improved operating performance".
“It grows but does not age” – this is Sofia's motto, inscribed on its coat of arms. Sofia is Bulgaria's economic dynamo and its major economic, academic and cultural centre. Probably your first impressions of the country come from the capital. The city has many faces and the most important one is the face it shows to the world. Sofia is Bulgaria, but Bulgaria is not Sofia.
NATURA 2000 is a network of protected territories within the EU. Most EU countries have adopted it without major internal dissent. A quarter of the EU's entire territory is included in the Natura 2000 project. Individual governments decide which particular zones to place in the list of protected eco-territories, with the aim of preserving environmental diversity.
Nobody likes discussing life insurance, be it in Bulgaria or abroad. Young people are either oblivious to it or simply don't think it is relevant to them. But at a certain point you become aware that one day something could happen to prevent you from being able to support your family. Well, you can't always be on the safe side. Part of planning your successful life in Bulgaria is getting insured against all kinds of eventualities. The most popular type of insurance is life insurance and this may turn out to be a good choice for you if are moving your life and career to Bulgaria.
Shopping habits are changing in the country as the competitive and fast-growing environment encourages companies to offer different retail options. Growing incomes and high demand have hastened the development of malls, retail centres and out-of-town hypermarkets.
With so many things to think about when buying property in Bulgaria, one area that is often overlooked is how to cut down on the cost of purchasing. After all, you can be quite overwhelmed initially at the prospect of paying all of these related expenses:
A Norwegian who has spent most of the past 40 years in Spain, but has nevertheless been appointed a knight by the King of Norway, Per Svensson is the secretary of the national association of foreigners in Spain, Ciudádanos Europeos, or European Citizens. The association was formed in 1992 following decisions in the Maastricht agreement to foment European Citizenship and works on a non-profit basis to protect the interests of European citizens in Spain.
As investors' pockets around the world start thawing out, we leave behind a very mild Bulgarian winter. Spring, being the time to get your house in order, is celebrated traditionally with an annual spring clean. Likewise, it is perhaps time to have a spring clean of your property portfolio and consider the future of the Bulgarian real estate market and general investment climate.
When foreigners consider buying a holiday home in Bulgaria, usually their main concerns are price, location and possible investment return. Very few of them are aware that purchasing a property of high quality for a reasonable price and with a good property management contract still does not mean they have made a sound investment. Not knowing much about Bulgaria, buyers often rely on the facts and promises contained in promotional materials and invest in properties which are sometimes illegally built in protected areas.
History repeats itself. In the past Bulgaria was a Soviet satellite country, member of the Warsaw Pact and a part of the Council for Mutual Economic Assistance (COMECON)*. After a turbulent period of transition from command to market economy, Bulgaria consecutively became a member of NATO and the EU, of which it is now into its second month of membership.
Bulgarian mortgage loans are no different to those elsewhere in the world - you can get one only if you can prove you do not need the money. If you are a foreigner, however, you will have to work very hard to get a loan, even if you have all the evidence that you are eligible to apply for and receive one. Despite your best efforts at convincing a Bulgarian bank to give you a mortgage, it is likely that you will be refused.