Bulgaria property market
The rise of the Bulgarian property market has been one of the most remarkable real estate phenomena ofthepastfewyears.lt has come about for two reasons - the collapse of Communist regimes in Eastern Europe, and the massive growth in the overseas property market. The former has opened up a hitherto unknown country to reveal one of Europe’s most attractive landscapes of mountains, meadows and never-ending forests. As a result of the latter there is growing demand for property abroad, which Bulgaria is amply able to provide. Buying property abroad has never been more popular: almost one in 10 British citizens now lives overseas (Institute for Public Policy Research, 2006), and a further 800,000 other British households own a second home - up a staggering 45 per cent since June 2004. People are increasingly looking at countries like Bulgaria to fulfil their desire for an affordable home, in a safe, secure and attractive environment. This book will introduce to you a country where you can still get away and live the dream.
Only a few years back, Bulgaria was an unfamiliar destination for British tourists - a handful of people had visited the Black Sea coast resorts on package holidays; others had memories of skiing holidays to Communist-built mountain resorts - often with tough-looking masseuses and an overabundance of olives for breakfast. Any of the 500,000 British tourists who have visited Bulgaria in the past five years know that things have changed. Indeed, today it is commonplace to strike up a conversation with people who are considering buying property in Bulgaria, or to have a friend who has bought there in the past few years. The change from Communism to a functioning market economy has been rapid. The subsequent economic growth has outstripped most western economies over the same period. Bulgaria has moved, improved, and boasts resorts as modern as anywhere.
It is hard to believe now that only a few years ago there was not a single estate agent promoting Bulgaria in the UK. In 2001, Channel 4’s production team for the popular TV programmed Place in the Sun arrived in the country to make the first episode for a new series. Because of the complete absence of estate agents geared up to overseas clients, they relied on an in-country British aid worker to help them with the logistics and setting up locations and properties forfilming. In stark contrast, today the streets of most of the popular tourist resorts are lined with estate agents aimed at foreign buyers. From the Black Sea coast to mountain ski resorts and inland historic towns, the problem for the foreign buyer is - which agent to choose? Similarly the Internet hosts hundreds of companies that are ready to hold your hand through the buying maze. Some companies specialise in regions or types of property. Some are Bulgarian, some British and some a mix. This book will help you to look beyond the initial advertising hype.
Buying a Property: Bulgaria is in some ways unique in this series. It has been written by two British people who have lived and worked in Bulgaria for the past nine years. Both have been closely involved with the property business, as buyers, sellers and developers, as well as setting up the first British estate agency. The advice they give is useful from all perspectives of the property industry. The book is designed to help you decide where, how and indeed whether to buy property in Bulgaria. It is primarily aimed at those people interested in buying residential property, though much of the information is also relevant to those buying commercial property - hotels, restaurants and tourist-related enterprises, retail,office and even agricultural property.
Buying a property in Bulgaria need not be a daunting or risky business. For the buyer, the process is fundamentally the same as in the UK-a property is advertised for sale, a buyer views it and makes an offer, and, if the offer is accepted, a lawyer is hired to conduct a proper and correct conveyance of the property to the new owner. The key legal difference is that a foreigner cannot own land in his or her own name. It is necessary therefore to register a limited company in the name of the buyer (which is allowed for foreigners) and forthat company to own the land or property. Exceptions to this rule about foreign ownership may apply in certain circumstances and we shall describe these in due course; for example, foreigners may buy an apartment if it does not come with land attached. One very important point to note is that, since Bulgaria’s entry to the EU in January 2007, it has been announced that this rule on foreign ownership is to be changed-in future EU citizens will not be regarded in law as foreigners and will be able to own property outright - but new legislation to this effect is slow to come into force.
In Bulgaria,foreign buyers have to rely much more on the agent who is selling the property than they do in the UK. Owing to the language barriers and distance, the buyer very often elects for the agents to co-ordinate all aspects of the buying process - from setting up a company, to appointing a lawyer, managing the sale from start to finish, and following up with other’after-sales’ administration such as registering the buyer for council tax, utilities and so on. It is therefore crucial to choose the right agent, to ensure the smooth running of the whole buying process, and for your peace of mind, to be certain that things have been done properly.
You should always remain aware that you are operating within a different culture. There are a number of local nuances that buyers are advised to be aware of. Throughout this book you’ll find personal anecdotes from those who have taken the plunge and made a commitment to living in Bulgaria, and from those who have bought for investment, for a holiday home or for retirement. They include a wide range of occupations from teachers to builders, architects, hoteliers and artists.Their experiences will inform and entertain. One aspect of the youth of the foreign property market-compared with, say, Spain - is that the British community in Bulgaria is small and friendly. People are always ready to share their experiences.
But this country of almost 8, 000, 000 people has much to offer for a tourist wanting to explore. Bulgaria is full of rich flora and fauna and fresh water springs and curative mineral mud coasts. Bulgaria is well connected to by Eurail, European budget flyers and the Eurolines bus service and the of course, if you have rented a car in Europe mainland, you very well drive in to the country with a valid passport and visa for any of the EU member countries.