Bulgaria is set to enjoy an economic miracle on a scale similar to that seen in Germany after the Second World War.
According to the November issue of Quest Bulgaria, grants to improve the country’s infrastructure plus the influx of global conglomerates are set to spark a boom.
Economic indicators point to excellent growth, with the property market set to grow too, says the independent English language monthly magazine for people living or buying property in Bulgaria.
With companies like Hewlett Packard and Microsoft relocating to the country and opening up new subsidiaries, more jobs and higher salaries are coming to the country.
Unemployment has been falling with a 2% decrease to 7.42% in the first half of 2007, according to the country’s employment agency. The minimum wage has risen by £14 a month to £78 – and from next year there will be a flat tax rate of just 10%.
Said Chris Goodall, Quest Bulgaria’s managing director, “The government expects salaries to grow by 10% by next July and the gross domestic product to increase to 6%. Following EU accession at the beginning of the year, what we’re now seeing is a level of growth similar to that which happened in Germany after the war.
“It brings higher wages and a higher standard of living, so everyone is a winner. And that means people buying property here can expect that growth too.”
But the magazine adds a cautionary note. Inflation has risen to 7.5% but the government believes it will fall to around 4.4% so that people living in the country can expect to have more spending power – and that includes British immigrants to Bulgaria.
Evidence of the boom is that banks are offering more attractive mortgage and credit facilities and demand for consumer credit in the first five months of 2007 rose by 22% year on year.
Last year the take-up rate on mortgages doubled but a huge 110% growth is expected in the next two years says the UniCredit financial group. And, says Pari – Bulgaria’s daily financial paper – the mortgage market was worth £1.2bn but by 2009 that is going to more than double to £2.6bn.
More banks are offering loans with over 120 different mortgages currently on offer and Tihomir Toshev, chief executive of CreditCenter, expects that figure to at least double by the end of this year.
“We think conditions for loans to foreigners will improve too, with banks offering these mortgages to people moving to this country,” he added.
“The indicators for growth are all around in Bulgaria,” said Chris Goodall.
“There are shopping malls, luxury hotels and apartments shooting up at a rapid rate. People are buying better cars and eating out more.
“Any improvement in the living standard of Bulgarians impacts well on foreign property owners and it’s the old adage of demand increasing and house prices rising so the message is quite simple: get ready for a boom.”
Also in the November issue are:
Property:
· land banking, not just for the big guys,
· agent briefing, help them to help you,
· investment in Stara Zagora.
Area Focus:
· Stara Zagora and surrounds,
· legal and financial,
· Power of Attorney, questions and answers,
· top tips when taking a mortgage
Lifestyle:
· advice for buying in Bulgaria,
· children's home in Yambol,
· miss your Marmite? Help is now at hand,
· work this way, earning a living in Bulgaria,
· colossal conversion, an old barn,
· rural renovations,
· small car, big heart - go Trabbi go!
· Balkan literature, biographers of Bulgaria.
According to the November issue of Quest Bulgaria, grants to improve the country’s infrastructure plus the influx of global conglomerates are set to spark a boom.
Economic indicators point to excellent growth, with the property market set to grow too, says the independent English language monthly magazine for people living or buying property in Bulgaria.
With companies like Hewlett Packard and Microsoft relocating to the country and opening up new subsidiaries, more jobs and higher salaries are coming to the country.
Unemployment has been falling with a 2% decrease to 7.42% in the first half of 2007, according to the country’s employment agency. The minimum wage has risen by £14 a month to £78 – and from next year there will be a flat tax rate of just 10%.
Said Chris Goodall, Quest Bulgaria’s managing director, “The government expects salaries to grow by 10% by next July and the gross domestic product to increase to 6%. Following EU accession at the beginning of the year, what we’re now seeing is a level of growth similar to that which happened in Germany after the war.
“It brings higher wages and a higher standard of living, so everyone is a winner. And that means people buying property here can expect that growth too.”
But the magazine adds a cautionary note. Inflation has risen to 7.5% but the government believes it will fall to around 4.4% so that people living in the country can expect to have more spending power – and that includes British immigrants to Bulgaria.
Evidence of the boom is that banks are offering more attractive mortgage and credit facilities and demand for consumer credit in the first five months of 2007 rose by 22% year on year.
Last year the take-up rate on mortgages doubled but a huge 110% growth is expected in the next two years says the UniCredit financial group. And, says Pari – Bulgaria’s daily financial paper – the mortgage market was worth £1.2bn but by 2009 that is going to more than double to £2.6bn.
More banks are offering loans with over 120 different mortgages currently on offer and Tihomir Toshev, chief executive of CreditCenter, expects that figure to at least double by the end of this year.
“We think conditions for loans to foreigners will improve too, with banks offering these mortgages to people moving to this country,” he added.
“The indicators for growth are all around in Bulgaria,” said Chris Goodall.
“There are shopping malls, luxury hotels and apartments shooting up at a rapid rate. People are buying better cars and eating out more.
“Any improvement in the living standard of Bulgarians impacts well on foreign property owners and it’s the old adage of demand increasing and house prices rising so the message is quite simple: get ready for a boom.”
Also in the November issue are:
Property:
· land banking, not just for the big guys,
· agent briefing, help them to help you,
· investment in Stara Zagora.
Area Focus:
· Stara Zagora and surrounds,
· legal and financial,
· Power of Attorney, questions and answers,
· top tips when taking a mortgage
Lifestyle:
· advice for buying in Bulgaria,
· children's home in Yambol,
· miss your Marmite? Help is now at hand,
· work this way, earning a living in Bulgaria,
· colossal conversion, an old barn,
· rural renovations,
· small car, big heart - go Trabbi go!
· Balkan literature, biographers of Bulgaria.