HIFX's sixth Global Property Hot Spots survey into trends for Brits buying property abroad showed investment in Bulgaria and Romania rose in popularity following the European Commission’s announcement that both countries will be admitted to the EU in January 2007. The percentage of people looking to buy in Bulgaria increased by 40 per cent in September.
Mark Bodega, marketing director for HIFX, suggested: “As people return from their summer holidays their thoughts inevitably turn to buying abroad. Spain and France remain the firm favourites with British holiday home owners and property investors alike. Last month, 46 per cent of all the overseas property enquiries we received related to Spain and France. We’ve also begun to see a significant rise in the number of clients buying property in both Bulgaria and Romania as British investors look to cash in on the European Commission’s September decision.”
Bulgaria is one of Europe’s fastest growing economies and has a vast array of reasonably priced properties in mountain, seaside and city locations. Romania on the other hand is eager to cast off its label of being one of the poorest nations in Europe and is crying out to get in on the property investment action. The property market in Romania has been growing at a bullish rate for three last three years now (an estimated 25 per cent per annum), fuelled by speculators waiting for healthy capital returns once the country amends its property-buying laws, becomes a free market and receives more than Euro 11billion in EU funding.
Damien Thiery, of Romanian Property Ltd. added: “In terms of residential property, there are two main areas of interest amongst foreign investors. Firstly, there is off-plan purchasing in the Romanian capital Bucharest. A studio flat, for example can cost as little as £25,000 off-plan, and if prices rise by 30 per cent as predicted after accession to the EU, British investors could be looking at a tidy profit for a relatively small investment. Investors are also being drawn to Brasov and Poiana Brasov (the latter being Romania’s largest ski resort). An airport is scheduled to open in Brasov in 2008 and a new motorway joining it with Bucharest is also planned, both of which are good signs for the future."
However, Bodega warned: “Make sure you do your research. Does the developer have references and a good track record? Check any facts and figures you are given, be curious and don’t be afraid to ask too many questions. Always engage a reputable lawyer who is familiar with the local property laws and who’ll be able to give you impartial advice. The less you leave to chance, the less chance things will go wrong”.
