Investments in Bulgaria
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Posted on | November 28, 2009 | No Comments
Economic Growth – 4.9% real economic growth (2002est.)
Political Stability – A Parliamentary democracy
A European Future – Already a full member of NATO, Bulgaria has been invited to join the European Union in 2007.
General Economic Data – click
Prices of building plots – click
Holiday houses on the Black Sea
Area EUR/m2 % of increase compared to 2004
Trakata 230-550 21-23
Evksinograd 250-500 22-24
Sv. Sv. Konstantin i Elena 250-500 22
Manastirski rid 150-210 15
Alen mak 150-210 22
Jurnalist 220-450 24
Galata 100-250 20
Zvezditsa 150-170 20
Source: Gradev – Varna, July 2005 The rise in property prices, which are currently around 23% per annum, offers the same kind of potential as the early days of the Spanish property boom. Not without reason the Bulgarian Black Sea coast has been dubbed the ” New Spain “.
Sale prices of apartments in the resort holiday complexes (EUR/sq.m.)
Area Price (Dec. 2005) Price (Jan. 2006)
Sunny Beach click 720-920 750-1250
Sveti Vlas 600-1300 650-1500
Ravda 600-800 650-800
Sozopol 500-800 650-1000
Primorsko 500-700 500-1000
Bansko 500-1100 600-1250
Bourgas click 260-760 320-850
Source: Index Imoti magazine, January 2006 Rental yields are better for apartments in complexes which means a guaranteed rental income for Black Sea property buyers of around 10 – 12%.
Recent television coverage in the UK and the prospect of joining the EU in 2007 has increased the interest in Bulgaria considerably. It is at the moment the fastest growing tourist destination in Europe.
Average prices of residential real estates in some world cities and capitals (in EUR/sq. m.)
London 9500 Madrid 2000
New York 7000 Lisbon 2000
Tokyo 5300 Vienna 1750
Singapore 4050 Liubliana 1430
Paris 3440 Moscow 1200
Oslo 3200 Panama 1200
Zurich 3200 Istanbul 900
Toronto 3200 Buenos Aires 700
Barcelona 2800 Lagos 550
Jerusalem 2600 Santo Domingo 460
Amsterdam 2502
Taipei 2300 Sao Paolo 400
Berlin 2200 Sofia 400
Source: FIABCI, Adis Ltd, Dec. 2005 The Bulgarian property market has already made impressive gains in the last couple of years with an average 2005 increase of 20-25%, some areas increasing by 30%.
Legal and International Guarantees for Foreign Investment
The Bulgarian Constitution and the Law on Foreign Investments provide national treatment to foreign investors which means that foreign investors are entitled to perform economic activity in the country under the same provisions applicable to Bulgarian investors except where otherwise is provided by law. In particular this principle covers the whole range of economic and legal forms of activities for accomplishing entrepreneurial businesses. The national treatment to foreign investors includes the participation in the process of Privatization and acquisition of shares, debentures, treasury bonds and other kinds of securities.
Legal Guarantees Against Adverse Changes in the Law
The Law on Foreign Investments stipulates the principle that foreign investment made prior to the adoption of amendments in law imposing statutory restrictions only with regards to foreign investments, shall not be affected by these restrictions. The sense of the law provides for that foreign investments shall be guaranteed against subsequent legislative changes.
Protection against Expropriation
The Bulgarian Constitution allows forcible expropriation of property in the name of the state or for municipal needs only if effected by virtue of a law provided that these needs cannot otherwise be met, and after a fair compensation has been ensured in advance. Expropriation under Bulgarian Law is governed by the Law on State Property and Law on Municipal Property.
The Law on Foreign Investments provides additional protection to foreign investors. The first added protection granted to foreign investors is that the expropriation may only occur for exceptionally important state needs, which cannot be otherwise met. Immovable property owned by foreign persons may not be expropriated for municipal needs.
As another protection for foreign investors the Law requires compensation in the form of another immovable property in the same location, and only given the foreign investor’s consent, in another location, or by cash if the foreign investor prefers so. Compensation equals the immovable property’s market price on the day of expropriation.
By: Jolis Eltilib
Condos for sale in Westchester
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