Real Estate
Investment Opportunities
The Bulgarian real estate market has incresead significantly in the past few years. Bulgaria has growing property market with relatively low prices, compared to new EU member states like Czech Republic, Hungary and Poland. Despite the high growth, the real estate market is developing fast. The forecast say that the Bulgarian property market will continue to develop and the increase of prices in the sector will maintain the same rate in the next few years.
De Ferrari’s real estate experts’ team has the capacity to meet this demand by offering professional advice and consultancy, local expertise and reliable, comprehensive and timely data for emerging markets of Bulgaria and other Balkan countries.
Data for the past years indicates prices of housing and office property, as well as land plots constantly to increase. Investment in Bulgarian real estate shows a good annual return combined with the possibility of significant capital appreciation. This development comes together with an increased interest from foreign investors.
The harmonization of Bulgarian law with European standards facilitates the conclusion of real estate deals. To stimulate the property market and to reinforce the legislative basis for real estate acquisitions, the Bulgarian government approved a law on special investment vehicles that has entered into force at the end of May 2003.
This law reinforced legislative basis for regulation activities related to real estate acquisitions and interactions of companies with special investment aims. These regulations have to become the needed market mechanism differentiating real estate investment trusts from construction companies. The creation of real estate investment trusts (REITs) and the regulations related to their activities came through the fast development of the Bulgarian property market in recent years.
De Ferrari JSC is co-founder of Bulgaria Real Estate Fund REIT, a special purposes investment company, one of the first in range.
BREF REIT is licensed by the Bulgarian State Financial Supervision Commission and listed on the Stock Exchange.
The Bulgarian Property Market
- The overall property market has experienced strong capital gains in recent years as economic development in Bulgaria has moved apace;
- Bulgarian property prices are still below those of its East European neighbour countries
- Strong consumption growth bodes well for retail property;
- There is a lack of Class A office space in Sofia;
- Tourism is a significant and growing proportion of the Bulgarian economy;
- Overseas investment has been focused upon tourist resorts;
Real Estate Market Index (REMI) - Sales
Source: National Real Property Association (Bulgaria)
Note: In the graphic above you can see the development of the real estate sales prices in Bulgaria since the start of the Real Estate Market Index (REMI) 4 years ago.
The dashed blue line is showing the forecasted trend of real estate prices in Bulgaria from Oct 2006 to March 2007
How foreigners can acquire ownership rights on land in Bulgaria?
Foreigners can acquire full land ownership rights, including ownership rights on agricultural land, by registering or joining a company under the Bulgarian legislation. These circumstances must enter into the Commercial register of the relevant district court.
A-Class
A-Class offices are newly constructed, high-quality buildings which possess convenient access, guarded surface plus underground parking, 24 hours modern security service and electrical power back-up. The premise should have excellent telecommunications and infrastructure, as well as air-conditioning and ventilation and modern elevators. The interior should be open, rational and functional, covering all international standards.
