Why is Bulgaria the best country for real estate investments in the European Union?
Yordan Yordanov: The prices of housing in Europe are much higher and more inaccessible than in Bulgaria.
Schengen? Euro currency? Technological innovations? Continuous requalification of staff? Stability of the inflation rate? All of this is a reality for us. It is also expected that 2024 will be very progressive for our development. This, of course, has a positive impact on the economy and business. These are just some of the facts supporting the fact that our country is an extremely favorable destination for domestic and foreign investments. Let’s take a closer look at what experts and figures say about the Bulgarian potential!
Bulgaria on the economic map of Europe
Our country is on the path of stabilization due to its efforts to join the Schengen Area and the Eurozone. Judicial and financial reforms of various kinds elevate Bulgaria’s rating in all major rating agencies. “Fitch Ratings” has confirmed Bulgaria’s long-term credit rating in foreign and local currency as ‘BBB’ with a positive outlook, while S&P Global Ratings has upgraded the outlook to positive from stable with a rating of ‘BBB/A-2’ in foreign and local currency. This reflects a significant growth potential for Bulgaria. Another factor is the current control of inflation, which started in November 2023.
For comparison, in Germany, one of the largest European economic powers, there is a crisis with their real estate. It is heavily affected by the decline in the property market, which was caused by the rising interest rates putting an end to the decade-long boom. Despite the decline in transactions to the lowest levels since the financial crisis, the weak economic growth, ongoing geopolitical crises, and shrinking labor market will continue to have an impact on the activity in this sector, reports BNR. Only at the beginning of the new year, this crisis starts to be overcome.
Investments in domestic territorial projects
According to experts, “the Bulgarian entrepreneur is inclined to invest in tangible assets and business creation.” This is not accidental, as these aspects are currently the most progressive and our business climate is most favorable towards them. Let’s focus on the real estate sector! In the last quarter of last year, the construction of nearly 1,600 new buildings began in the country, according to NSI. This shows enthusiasm from investors as well as inventiveness in projects on one hand due to the high competition, and on the other hand due to the great interest from clients. At the same time, we are also witnessing a shortage of well-finished properties.
According to the managing director Yordan Yordanov of one of the most progressive real estate agencies “Nov dom 1”, housing prices in Europe are much higher and more inaccessible than in Bulgaria. The exceptions are Spain and Italy, but property rights are not protected there as they are in Bulgaria, and the property can easily be seized, and owners are deprived of protection. In addition, the tax system in these countries has extremely high taxes, which limits the possibility of short-term investments with the aim of making high profits. In Bulgaria, low prices and excellent tax rates make properties a preferred investment instrument. Furthermore, Bulgarians love secure investments, and properties are exactly that type of investment.
Investment Potential
At the moment, in our country, there are numerous forums, workshops, and programs for financial literacy and increasing knowledge about investments.
Many companies also support small and large investors. The investment leader New Home 1 gives its clients the opportunity to invest through buying and selling real estate and multiply their financial resources using the program “Make money while you rest” created in 2014. Thanks to the exceptionally low tax rates in our country and the professionalism, innovation, and excellent organization in New Home 1, the program has been successfully generating exceptional profits through property investments for 10 years. The focus of the program is on short-term, high-yield, and extremely low-risk investments that follow a solid logic and allow people with limited financial resources to invest calmly. This program is simply unique and offers the opportunity to achieve passive profits by following the idea that you should not let your money rest, but make it work for you. Let your money make more money for you.
Investing in real estate through New Home 1 offers a high level of security, and the return is 13+% on the invested amount with full capital recovery at the end. Bulgarians in our country show a desire for development in this direction, thanks to the change in their attitudes and participation in similar initiatives for their own change and progress. The change in society starts with the change in the individual.