Bulgarian Real estate - Land in Bulgaria - Overview, Market, Investments

     The year that passed by will be a turning point for the market of agricultural land. Prices of homes and plots in inhabited places registered significant growth and this fact influenced prices of agricultural land. Money invested in agriculture on different European projects and programmes increased profitability of land cultivation and rent given by renters. This increased appetite of many people who wish to gain good land.
     The most expensive are lands in the vicinity of our famous mountain and marine resorts. The question is where the land is situated and for what purpose it can be used. Average sale price of land for the whole 2004 is 306 lv per decare and for 2003 it was 145 lv. But do not forget that only 2.3 % of all deals are for land which requires change of its use, namely for building of commercial and housing objects.
     What we can expect for the period 2005-2007 year? The financial frame of assets determined for investments in agriculture is already clear. They are not large figure, but having our native economy and prices in our country for background, they look really impressive. Money that will come in agriculture are clear for the period 2007-2010 year. We are talking about billions and this will influence land market. Enterprising Bulgarians that already buy up land in different regions of the country and do not announce that will show good view for the future.
     What the analyses of deals with land in the year 2004 show? Most deals and sold land plots are in Dobrich. This is natural -here wheat is raised and other crops, and price of corn in 2004 was much higher than average in the previous five years. Here average price on which deals are finalized is 189 lv per decare, and traded decares are over 60 thousands. And now pay much attention - second place according to number of deals is for Vidin region, 3334 deals with more than 30 thousand decares sold. The reason is simple - the cheapest land in the country - only 88 levs - average level for these deals. Targovishte, Iambol, Pleven follow with prices under and bout 90 lv. deals are in smaller amount where price is over 300 lv for decare.

     The conclusion:

1. Buy cheap with the following aims:
   • Following resale on highest price.
   • Using credits and subsidiaries by side of producers in the next years. According to unofficial data, every registered agricultural producer will receive about 10000 lv every year after Bulgarian entering in EU.
   • Compaction of property aiming its realization as production or resale.
   • Ordinary investment for people possessing money who want to have real estate led by the thought that they will not decrease in price and will increase it in next 8-15 years
2. Buy quality agricultural land for agricultural production which obviously will become more profitable and effective, and in chosen regions -Dobrudza and Trakia.

     This is picture until now. The question is what to do? And the answer looks comparatively easy - if you have money buy land. In this way you will not lose and your profit is sure - although time for gaining best recovery of investment may prolong to 5-10 years.
     After prices of land increased in 2004, land market in Bulgaria becomes more active, no matter category and location of land. Buyers are predominantly farmers and renters, and people who are not engaged in agriculture, but invest in buying of land. On the whole land market is active in the South central region of the country, and low regions of plains around Petrich and Sandanski. Prices of lands near Black sea and resorts and inhabited places remain much higher, but they are mainly used for building purposes.
     Regions with potential are Stara Zagora and cities near Danube River, where land is treated as rich and there is interest by foreign citizens. Actually in regions where at the moment there is no movement, will become very attractive for buying of agricultural land.
     Agricultural land will increase its price between 3 and 7 until 2012 year. Problems with ratification of European constitution and possible delay of Bulgarian membership in European Union will not influence land market. Now land market in our country is so depreciated that negative prognoses of financiers are for constant increase in next seven years to 500-600 lv for decare.
     If prognoses of experts come true one decare of plains shall increase its price to 500 euro. Two factors will cause increase of land price. After Bulgarian entering in European Union in 2007, our country will become attractive place for investment including in land. The other factor is compaction of land which comes in the near future, and will be legally regulated. According to experts investment in land will be among most profitable in next years. Apartment in Sofia will never be equivalent to apartment in Paris, but price of agricultural land is one and the same in every place, it is cultivated in proper way.