ABOUT BULGARIA

WHY BULGARIA?

Homing in on extra profits
How buying a second house can bring income and relaxation

(CNN) -- Stocks and shares may offer an extra income, but for business travelers used to flitting from country to country, there's another option that can offer both healthy returns and healthy relaxation.

Investing in a second home overseas is an increasingly common practice for executives comfortable with doing business in foreign places and, provided you choose the right location, there's money to be made.
With sleepy towns, tricky red tape and bumpy road networks, Bulgaria might not seem like the best location, but the country is one of a handful of eastern European nations that have emerged as darlings of the property market.
Among the thousands of investors who have beaten a path to Bulgaria are British businessman Dave Hunt, who has invested $140,000 in a chalet with picture postcard views of some of the country's best ski slopes.
"There were three things in our mind when we looked for a house to purchase as a family. The first one was holiday home, the second was capital growth or protection at least, and the third was potential rental income in the future," Hunt told CNN.
"We wanted to have a regular skiing holiday. We were looking for somewhere that was good value for money, as we're a large family, and it can be quite pricey, especially when you take the kids up and so on.
"Bulgaria was referenced to us by other people, word of mouth, and we did a bit or research on the Internet as well, and found that it was really good value for money, and good skiing, and also a growth area."
Hunt says his investment is already paying off, with prices rising from 800 euros per square meter to 1,400 in the space of 12 months.
And with a potential income from renting the property out, there's even more money to be made.
According to current law, foreigners cannot officially buy land and must set up a company -- although this is set to change when the country joins the European Union in 2007.
Although Bulgaria is now abuzz with construction work, the situation is very different from that of three years ago, says James Hughes, a British expat and hotel owner.
"There was no property for sale, there was no one who spoke English," he said.

Housing boom

"There were two estate agents in the whole country. Four people spoke English in the whole town when I first got here. Nowadays there are a few hundred estate agents, and hundreds of developments."
The new construction has attracted the attention of airlines, which are expanding routes to take advantage of the new market.
"Typically, when somebody buys a property, that generates nine or 10 flight tickets," said Josef Varadi, chairman of budget Hungarian carrier Wizz Air, which will launch a new London to Sofia route in May.
"Based on my info, last year, more than 20,000 properties were sold to UK inhabitants. Now if you take the mathematics, we are talking about hundreds of thousands of people and travelers during the year.
"Apartments in Sofia are selling for, let's say approximately 600 to 1000 euros per square meter -- or around $90 per square foot. If you look at other major cities in the U.S. , that's a very, very low price.
"In New York, which is a very high price market, condominiums are selling for anywhere between $800 to $3,000 a foot."

Want the lowest prices? Then head for Bulgaria's interior, says Ginetta Vedrickas

Investment has been the incentive for most buyers in Bulgaria , with off-plan apartments forming the bulk of sales. But a new trend is emerging as a growing number of Brits encounter the charms of this diverse country and opt to move there permanently.
Sunny Beach on the Black Sea Coast has so far drawn the most buyers, and signs of development are everywhere in this buzzing resort. But head further along the coast, or just a few miles inland, and you find a totally different Bulgaria where property prices are still low.
Pauline Scrace a property specialists says the tide of UK buyers often opt for period properties in small villages. "Many buyers come from the north of England , they may be on lower incomes and leading stressful lives, so they opt to go and live where the cost of living is so much cheaper."
Some buyers are now letting their UK properties and finding they can live well in Bulgaria on the rental income - "For the rental income from a two bedroom flat you can live like a king over there," she said.
With Bulgaria 's EU membership scheduled for 2007, the number of Brits relocating is likely to increase, said Avatar International's Amar Sodhi. " Bulgaria has high unemployment and some of the lowest wages in Europe, around €200 per month, and this alone will attract companies to base themselves there, resulting in many more British employees being relocated."
So what can buyers expect to find? Prices on the coast have risen significantly in the last few years, many agents reporting year-on-year rises of 25 per cent in most resorts and even 100 per cent in certain hotspots but, while investors are attracted to the coastline, people moving permanently often prefer to be based inland.
Halfway between Sofia and the Black Sea Coast, Veliko Turnovo, the former capital of Bulgaria , is one of the country's most ancient cities and attracts people who come here for period architecture and a cosmopolitan lifestyle. The old city itself is situated on four hills and on the banks of the Yantra River. Here, prices are lower than the coast, typically starting from £10,000, although it is still possible to find cheaper homes, but renovation costs can add a further £15,000.
Many Brits are buying in this region, in surrounding villages such as Kapinovo, Mindia, Pchelishte, Ressen and Hotnitsa. To the west, villages such as Gostilitsa and Kereka have lovely south-facing views over the Stara Planina Mountains and attract British buyers who find that they can still pick up traditional stone and wooden houses for under £20,000.
Stephane Lambert is based in Bulgaria , where he runs his own estate agency, and he has noticed a growth both in retirees who discover that they can make pensions stretch much further, and in younger people who find Bulgaria offers many business opportunities, often catering to the needs of British buyers such as architects and builders.
"We are even seeing first time buyers who can't get on to the property ladder in the UK, so they decide to buy out here, use the property for a few years themselves and then cash in on the equity." Lambert moved to Bulgaria eight years ago while working for the UN, and has noticed a recent increase in bars and restaurants catering to the influx of foreigners. "Years ago, apart from a few language teachers, there were no other nationalities but now I know of around thirty British people living in Veliko Turnovo permanently."
Julie Freeman, 52, from the West Midlands, recently bought a large farmhouse in a village 30km from Veliko Turnovo, which she plans to run as a small guesthouse. "The house does need renovating and I expect to spend about £15,000 doing it up. Once it's done I'm hoping to be able to have my B&B, and hopefully cater to other British buyers who are looking around here." The property itself cost £20,000.
Investment has been the incentive for most buyers in Bulgaria, with off-plan apartments forming the bulk of sales. But a new trend is emerging as a growing number of Brits encounter the charms of this diverse country and opt to move there permanently. Sunny Beach on the Black Sea Coast has so far drawn the most buyers, and signs of development are everywhere in this buzzing resort. But head further along the coast, or just a few miles inland, and you find a totally different Bulgaria where property prices are still low.Pauline Scrace of property specialists Bulgarian Horizons says the tide of UK buyers often opt for period properties in small villages. "Many buyers come from the north of England, they may be on lower incomes and leading stressful lives, so they opt to go and live where the cost of living is so much cheaper."
Some buyers are now letting their UK properties and finding they can live well in Bulgaria on the rental income - "For the rental income from a two bedroom flat you can live like a king over there," she said.
With Bulgaria's EU membership scheduled for 2007, the number of Brits relocating is likely to increase, said Avatar International's Amar Sodhi. "Bulgaria has high unemployment and some of the lowest wages in Europe, around €200 per month, and this alone will attract companies to base themselves there, resulting in many more British employees being relocated."
So what can buyers expect to find? Prices on the coast have risen significantly in the last few years, many agents reporting year-on-year rises of 25 per cent in most resorts and even 100 per cent in certain hotspots but, while investors are attracted to the coastline, people moving permanently often prefer to be based inland.
Halfway between Sofia and the Black Sea Coast, Veliko Turnovo, the former capital of Bulgaria, is one of the country's most ancient cities and attracts people who come here for period architecture and a cosmopolitan lifestyle. The old city itself is situated on four hills and on the banks of the Yantra River. Here, prices are lower than the coast, typically starting from £10,000, although it is still possible to find cheaper homes, but renovation costs can add a further £15,000.
Many Brits are buying in this region, in surrounding villages such as Kapinovo, Mindia, Pchelishte, Ressen and Hotnitsa. To the west, villages such as Gostilitsa and Kereka have lovely south-facing views over the Stara Planina Mountains and attract British buyers who find that they can still pick up traditional stone and wooden houses for under £20,000.
Stephane Lambert is based in Bulgaria, where he runs Stara Planina Properties, and he has noticed a growth both in retirees who discover that they can make pensions stretch much further, and in younger people who find Bulgaria offers many business opportunities, often catering to the needs of British buyers such as architects and builders.
"We are even seeing first time buyers who can't get on to the property ladder in the UK, so they decide to buy out here, use the property for a few years themselves and then cash in on the equity." Lambert moved to Bulgaria eight years ago while working for the UN, and has noticed a recent increase in bars and restaurants catering to the influx of foreigners. "Years ago, apart from a few language teachers, there were no other nationalities but now I know of around thirty British people living in Veliko Turnovo permanently."
Julie Freeman, 52, from the West Midlands, recently bought a large farmhouse in a village 30km from Veliko Turnovo, which she plans to run as a small guesthouse. "The house does need renovating and I expect to spend about £15,000 doing it up. Once it's done I'm hoping to be able to have my B&B, and hopefully cater to other British buyers who are looking around here." The property itself cost£20,000.
Investment has been the incentive for most buyers in Bulgaria, with off-plan apartments forming the bulk of sales. But a new trend is emerging as a growing number of Brits encounter the charms of this diverse country and opt to move there permanently.
Sunny Beach on the Black Sea Coast has so far drawn the most buyers, and signs of development are everywhere in this buzzing resort. But head further along the coast, or just a few miles inland, and you find a totally different Bulgaria where property prices are still low.
Pauline Scrace of property specialists Bulgarian Horizons says the tide of UK buyers often opt for period properties in small villages. "Many buyers come from the north of England, they may be on lower incomes and leading stressful lives, so they opt to go and live where the cost of living is so much cheaper."
Some buyers are now letting their UK properties and finding they can live well in Bulgaria on the rental income - "For the rental income from a two bedroom flat you can live like a king over there," she said.
With Bulgaria's EU membership scheduled for 2007, the number of Brits relocating is likely to increase, said Avatar International's Amar Sodhi. "Bulgaria has high unemployment and some of the lowest wages in Europe, around €200 per month, and this alone will attract companies to base themselves there, resulting in many more British employees being relocated."
So what can buyers expect to find? Prices on the coast have risen significantly in the last few years, many agents reporting year-on-year rises of 25 per cent in most resorts and even 100 per cent in certain hotspots but, while investors are attracted to the coastline, people moving permanently often prefer to be based inland.
Halfway between Sofia and the Black Sea Coast, Veliko Turnovo, the former capital of Bulgaria, is one of the country's most ancient cities and attracts people who come here for period architecture and a cosmopolitan lifestyle. The old city itself is situated on four hills and on the banks of the Yantra River. Here, prices are lower than the coast, typically starting from £10,000, although it is still possible to find cheaper homes, but renovation costs can add a further £15,000.
Many Brits are buying in this region, in surrounding villages such as Kapinovo, Mindia, Pchelishte, Ressen and Hotnitsa. To the west, villages such as Gostilitsa and Kereka have lovely south-facing views over the Stara Planina Mountains and attract British buyers who find that they can still pick up traditional stone and wooden houses for under £20,000.
Stephane Lambert is based in Bulgaria, where he runs Stara Planina Properties, and he has noticed a growth both in retirees who discover that they can make pensions stretch much further, and in younger people who find Bulgaria offers many business opportunities, often catering to the needs of British buyers such as architects and builders.
"We are even seeing first time buyers who can't get on to the property ladder in the UK, so they decide to buy out here, use the property for a few years themselves and then cash in on the equity." Lambert moved to Bulgaria eight years ago while working for the UN, and has noticed a recent increase in bars and restaurants catering to the influx of foreigners. "Years ago, apart from a few language teachers, there were no other nationalities but now I know of around thirty British people living in Veliko Turnovo permanently."
Julie Freeman, 52, from the West Midlands, recently bought a large farmhouse in a village 30km from Veliko Turnovo, which she plans to run as a small guesthouse. "The house does need renovating and I expect to spend about £15,000 doing it up. Once it's done I'm hoping to be able to have my B&B, and hopefully cater to other British buyers who are looking around here." The property itself cost£20,000.

PROPERTY PRICES IN EASTERN EUROPE INCREASING FAST

Property prices were registering the highest increase in East European countries, data of the British property company Knight Frank, presented in Financial Times shows.

Japan continues struggling with price decrease, the report said. Property in Hong Kong was also losing value after a previous boom.

Worldwide, property has become 8.5 per cent more expensive, the analysis showed.

Significant price increase was observed for property in Bulgaria and Estonia . According to the analysis the increase resulted from the equalization of prices in Europe. Because of investor interest property prices in Bulgaria went up by 20.5 per cent.

According to predictions Bulgaria would become Europe's property hotspots in the coming year.

BRITISH PROPERTY SEEKERS SEE BULGARIA AS FOURTH MOST ATTRACTIVE DESTINATION

Bulgaria ranks fourth among the destinations where British prefer to buy property.

Increasing number of British looking for a second home abroad preferred places with sunny and warm climate, the Government’s Survey of English Housing said as quoted by The Guardian.

Over the past 10 years the property British citizens bought abroad increased by 300 per cent, BGNES news agency reported.

Until recently Spain and France ranked among the most preferred property purchase destinations.

A new tendency was noticeable. British were now looking for property in countries like Bulgaria, Romania, Hungary and the Czech Republic.

British property seekers saw the purchase of a house abroad as a personal investment. The report said that nearly two per cent of all British owned property in another country.

Most British who owned a second house abroad were pensioners or wealthy people who wanted to spend their vacation abroad, the report said.

BULGARIA OFFERS LOWEST PROPERTY PRICES IN EUROPE

UK citizens were keener than ever on buying property abroad, The Independent said.

They were attracted to the “prospect of their own place in the sun and an easy way of making money."

Nearly 800 000 British families had purchased a second home abroad, marking an increase of 45 per cent since 2004.

Spain remined the most popular destination for purchasing a second home abroad, The Independent said. France, Austria and Italy followed in the ranking.

Seven per cent of the UK property buyers chose Eastern Europe. Still, real estate companies that sell property in the region say their business was blooming, registering 50 to 60 per cent increase per year.

People liked Bulgaria for its proximity to their country, warm climate and skiing opportunities in the winter.

Bulgaria was believed to offer the lowest property prices in Europe. "Additionally, it would benefit from joining the EU next year, with low-cost airlines expected to expand routes," The Independent said.