Why Invest

The impact of Bulgaria’s EU accession on property prices has already been consumed in advance, but on the other hand, the country’s accession is a sign that many international investors have been awaiting for some time before they commit huge resources to the Bulgarian market.

The EU membership of the country led to a significant improvement in the quality of property supply as both buy-to-let investors and end buyers have become more demanding. Most developers and buyers have already become strict enough about the construction, design, and materials used of new properties. The decrease in the direct taxation and the easing of certain regulatory regimes, along with the reduction of the corporate income tax to 10% already reflects the labor market trend towards a considerate increase in the retail and office space. The constantly increasing number of international companies further boosts the demand for class A and class B office buildings in Q III 2007.

Some 10 % or more than 8 bln Euros, of the expected new investments in Eastern Europe will enter Bulgaria, because the country continues to attract foreign investors. Bulgaria’s positions are very good when it comes to foreign companies’ expectations about the country’s overall economic development in future. The national strategy for integrated infrastructure plans 720 km of new highways to be completed by 2015. Foreign direct investments in the real estate sector account for 1/3 of all FDI in 2006. In other words, FDI in the construction and real estate sector in 2006 reached 1.8 bln Euro.