Bulgaria Looms as the Next Real-Estate Hotspot
Economic Expansion
Growth is strong as well. This year, the Bulgarian economy may expand 5 percent, according to a Bloomberg News survey of five economists in August. Inflation is subdued and the government aims to join the European Union by 2007 and to sign up for the euro by 2010. There is little to make investors feel nervous.
In parts of Western Europe and the U.K., property prices have surged because of historically low interest rates and rising incomes. It looks like a bubble has developed. In Eastern Europe, real-estate prices are being driven by rapid economic growth and the need to replace low-quality housing. As people get richer, they spend more money on living somewhere nicer. It may be decades before that process is complete.
The boom in companies investing in markets such as Bulgaria isn’t just a passing fad. Money is there to be made over the next few years — and buying shares in a listed company is a lot less work than buying a property yourself.
