Bulgaria – back to the future

A year and a half after Bulgaria was accepted into ‘the big boys club' and became a member of EU, the contrasts and problems are in many ways larger than ever.

By Nils Bjørnæs

While the coastal resorts, with their luxury hotels and apartment complexes, are starting to remind of Miami Beach, the decay of the villages further inland stand in sharp contrast. The huge number of tourist that flock to the country every year may help to create wealth for a few, but most of the country's 7,6 million people still survive on the bare minimum. So even though things are better now than they were following the collapse of communism, many of the older generation still think back to ‘the good old days' when they at least knew they would have the basics.

The future...
There is no doubt that Bulgaria the last few years has become one of Europe's most popular holiday destinations, as well as a favorite among investors who have been buying in the thousands. Last year Bulgaria topped the trend as the fastest rising property market, with over 30 percent growth per annum, but is the tide now turning?

"It is definitely quieter this year," says Ben Kane, property consultant for the company Link to Bulgaria. "The British buyers have been driving the market here, but now people in the UK are worried about what is happening to the British economy. On the other hand there are still people looking to invest their money, and with about 50,000 apartments now for sale on the coast, there are some good deals to be had", he says.

The EU honeymoon period has now also come to an end for Bulgaria. Because of the government's lack of ability to get a grip on corruption and crime, the EU Commission has now put a freeze on all financial support (in the sum of 486 million Euros) for an unknown period of time. So there is a lot at stake for Bulgaria, and it is now up to the politicians in Sofia to prove that they can and will do something about all the problems.

Young people in Bulgaria do have hope for the future, but little or no faith in today's government and politicians. This is noted by two ambitious 25 year olds, Diana Genova and Lilliya Velickova, who run their own businesses in Veliko Turnovo: "The politicians think that democracy is there for them and that they can do whatever they want. There needs to be a change in the way of thinking in the whole society, and we think that will take a long time."

But if the contrasts are huge in society, then they are perhaps even more prominent in the landscape itself. Because despite all the problems, Bulgaria is still a very beautiful country. From white sandy beaches and rolling hills, to deep forests and snow-capped mountains, Bulgaria seems to have it all. Even the weather is varied and surprising - it has an ability to change from scorching hot summers to freezing winters within a matter of days!

The past...
Lying at the crossroad between Europe and Asia, Bulgaria's history is dominated by war and occupation. From the early Thracians up until today, the country has mostly been under the control of other nations. We give you a brief introduction to the country's history and culture, which you can read about in their own separate articles.

Much of this cultural heritage you can find in the old town of Veliko Turnovo, which was Bulgaria's capital from 1185 until 1879, and you can read about it in 'The old capital'. 

Buying property
Investing in property abroad isn't without its risks, and it is therefore important to be as informed as possible about the country's laws and rules. In Bulgaria, for example, a foreigner is not allowed to own land and you will have to set up a company to hold it in trust for you. "This is just a formality and something that will change in the near future", says real-estate lawyer Daniel Bratanov, who we met in Burgas.

Haris N. Menelaou, a director of the property development company Best of Bulgaria, has also noticed a lack of British buyers this year. Most of his customers now come from Russia, Cyprus and Bulgaria. Read his thoughts on how the Bulgarian property market is today and where he thinks it is heading.

Fine wine
That Bulgaria is one of the biggest wine exporting countries in the world might come as a surprise. Come with us on a visit to Vinex Slavyantsi, where we talk to its director, Georgi Zhekov, about the ups and downs of the Bulgarian wine industry.

You can read about this and much more in this issue of IPB-magazine, which we hope will give lots of useful information, whether you are thinking of investing in a property or you are just going on holiday.