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Bulgaria strengthens lead as property hotspot

21st June 2006 | back to article listings BACK    print this article PRINT

Bulgaria has managed to further improve its reputation as a property investment hotspot in the last three months, according to the latest investment Tracker.

The second quarter of 2006 actually saw Bulgaria improving its position considerably, from a 116 per cent return on cash invested in March to 137 per cent in June, according to research from Assetz.

Furthermore, mortgage rates have fallen from seven per cent to 5.95 per cent in the period, meaning that borrowing is also significantly cheaper for those looking to invest in property. With the deposits required falling from 30 per cent to 25 per cent since March, investors are now enjoying extremely favourable conditions in Bulgaria and it is for this reason it has topped the latest Tracker.

But the most important progression is that Bulgaria has also managed to develop a solid resale market, providing investors with confidence that it now has staying power as a strong investment destination.

Dan Fox, editor of Retire to the Sun, agrees with Assetz that Bulgaria is currently one of the strongest investment options in Europe.

"The Euro is not so great to the pound at the moment so that can make a difference when you transfer large amounts of money for property, but there are still high house prices in the UK so with the up and coming markets, now is a good time to buy in the countries that are just about to join the European Union like Bulgaria because the effect of joining the EU is usually a positive one," he said.

The Spanish market is also continuing to grow, with capital gains of 12.8 per cent over the last 12 months. The buy-to-let sector in Spain is also looking healthy, with gross rental yields of eight per cent and a total return of 43 per cent on cash invested.

The Asstez Tracker has also observed that Greece is now showing positive house price growth, with the average property value climbing by 7.9 per cent in the last 12 months. The previous return on cash invested in Greece was just two per cent but this has not risen to 25 per cent. Another tip may be Poland, where house prices are thought to have risen by as much as 20 or 30 per cent in 2006 so far.

Stuart Law, managing director of Assetz, comments: "The choice of overseas destinations available to investors is growing increasingly wide, driven by EU expansion, new low cost flight routes and the prospect of hefty returns particularly in emerging markets such as Bulgaria and Poland.

"More traditional destinations such as France and Cyprus are still stacking up very well against the competition and hold huge appeal for investors who are attracted by a stable growth pattern, uncomplicated buying process and guaranteed resale market," he added

At the same time, Mr Law has advised property investors not to ignore opportunities in the UK, where the six major price indices are averaging growth of 6.8 per cent.

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/2775.html. Alternatively, please see our full press release archive.

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