An evaluation of the significant factors that contribute towards the success of companies operating in the Bulgarian property market

An Evaluation of the Significant Factors that Contribute towards the Success

Of

Companies Operating in the Bulgarian Property Market

INTRODUCTION

There are several factors that had come together to give an exceptional boost to the real estate market in Eastern Europe . The major factor that contributed to the boom was the abandoning of central planning , which was a system that was embraced by all communist countries before the fall of the Soviet Union . After that every Soviet block and East European countries had started introducing the market economy . That

automatically opened the door for property speculation and currently many investors are buying property in Eastern Europe with a mixed result

Among the East European countries Bulgaria had finished ahead simply because it became among the hot tourist destinations in a few years time and it started to attract both investors and tourists in a big number The outcome was mixed and there are some who say that Bulgaria 's property market is saturated whereas there are others who say it is still possible to make money by investing in Bulgaria 's real estate

It was in l996 that Bulgaria was able to topple the communist regime From then on , it had decided like many East European countries to introduce the market economy . While doing that , as European countries it was inevitable that they would join the EU . However , before doing that they had to go through a preparation phase that had a considerable amount of aid earmarked to it . Using whatever was getting into their system these countries were working to transform their economy that had been under a central planning for all those years and eventually they started showing some positive result (Angelov , Ivan et al . 1992-2001

Bulgaria was not different from similar Eastern European countries in such a way that there was a lot of activity in the capital Sophia where there was some kind of a construction boom simply because the workforce was able to make more money hence they were able to afford to pay for better accommodations . The commercial sector also saw some activity where offices and other commercial properties were in high demand . This started attracting investors since the country had opened its doors for outsiders as long as they met certain requirements . What took place was a boom by any standard even if it was not different from what was happening in the other countries that were selling properties cheap simply because they were starting out from a system where property did not have any value since they were under communism (Petrov , Georgi 1969

In all this Bulgaria got another advantage because of its tourist industry that became very popular to the point where it started to compete with other destination such as Spain , Greece and Portugal . One of the reasons for this was the low price that includes both cost of living and the price of buying property . The second one was Bulgaria has a tourist sector that has a ski resort...