Welcome to the faq section.
How do I invest in property in Bulgaria?
The upturn in the Bulgarian economic climate, coupled with the preferential conditions and guarantees for foreign investors, has generated excellent business opportunities and investment growth potential. The imminent acceptance of Bulgaria in the European Economic Community, with full integration planned between 2006 and 2008, is attracting more and more foreign investors to Bulgaria, providing unprecedented economic growth potential.
In July 2000, Bulgarian Property Law was changed to remove the restrictions on foreign investment in Bulgarian land and property. In common with other European countries, the only remaining requirement is to register the investor or investing company in Bulgaria before any transactions can take place and capital invested.
What is the state of the Bulgarian real estate market?
Like everything else in Bulgaria, property is very good value. This is the result of a general neglect of Bulgarian asset markets (at the moment). Foreign investors in Bulgaria will profit in the long run.
Of course this depends on the price at which you buy. Property appraisal and valuation is an important element of our services. Knight International and Bulgaria-Property.com has a network of local contacts across the country who have negotiated the realistic prices that we offer on our properties.
Bulgaria is scheduled to join the EU in 2007. At the moment, the Bulgarian property market is off the map for foreign investors. We anticipate awareness of this market to increase as EU membership approaches. Plus, the present Constitutional restriction of foreign investment in land in Bulgaria is incompatible with EU membership. When this restriction is removed we expect much inward investment, which will cause an increase in the market's liquidity and its level.
A footnote about currencies: It is interesting to note that the Bulgarian currency (the lev) is significantly undervalued. Purchasing Power Parity theory means there must be, eventually, product and asset price inflation. (Refer to The Economist's Big Mac Index
. A BigMac in Plovdiv is BGN 2.49, which implies a 50% undervaluation against the dollar.)