A sustainable growth, a stable political and economic environment combines for the overall attractiveness of Bulgaria: EU and NATO membership, high GDP growth, low corporate tax and a stable political situation. (10%)

Decreasing interest rate trend: legal and financial sectors in Bulgaria are becoming more established, offering improving mortgage vehicles, a stable purchasing structure:

• Current mortgage interest rates of 6-8% provided by local banks (DSK, Piraeus, First Investment Bank, UBB, etc.....)
• alternative real estate financing on the rise (leasing scheme)

Increased foreign direct and indirect investment in Bulgaria:

• FDI stands for 9.7% of the Bulgaria GDP in 2005 (Austria, Greece, Germany)
• FDI inflow forecast at 3 billion EUR for 2006 (2.4 billion in 2005)

Foreign direct and indirect investment in Bulgaria is determined by:

• the full EU and NATO membership
• growing economy with currency tied to EURO
• the government continuing to stimulate private investment through a tax cut -- corporate tax were reduced to 15% in 2005 and has been lowered to 10 % since the 1st of January
• expanding tourist industry:
  • net revenue from tourism in 2005: 1 billion (+12% compared toBSR_General_Brochure0003_copy.jpg 2004)
  • tourism stands for 12% of the Bulgarian GDP
  • 43% tourist increases between 2002 and 2006
  • 36% British tourists between 2004 and 2005: 1.2 million British tourists expected to choose Bulgaria as their holiday destination in 2008 (100,000 in 2002 to 400,000 in 2005)
  • 122% Irish tourists between 2004 and 2005

Stable macroeconomic indicators:

• strong GDP growth: 5.3% on average between 2002 and 2006
• inflation for the first 6 month in 2006 stands at 2.9% (6% in 2002)
• unemployment rate has steadily decreased to 8.6% by Oct 06 (16% in 2003)
• improved credit rating: BBB

Highly competitive Business environment:

• lowest operating costs in eastern Europe: average salary of 200 € in June 2006 (850 € Croatia, 700 € Czech republic, 600 € Hungary, 300 € Romania)
• solid legal framework
• Excellent technical skills of the workforce
• Excellent educational system

Growth potential:

• fast developing real estate market
• liberal foreign investment laws of improving bank mortgage system
• stable political and economic environment
• excellent return on investment: as in any under-saturated market, the pioneers have taken greater risks and enjoyed greater returns. And, as those markets begin to mature and stabilize, more conservative large-scale investors are entering them, knowing they would be looking at a relative more modest profit but in a more secure environment:
  • 50% capital return in 2004
  • 36% capital gain appreciation in 2005
  • 18% average property appreciation for 2006
  • 22,6% increase just for June, July and August of 2007
• lack of currency risk (BGN pegged to the EURO under stable currency board)
• significant foreign investment in real estate (in 2006, out of 261000 forecasted to be closed, foreign-residents are involved in 25% of the sales)
• the prediction that property prices would double in the next five to six years is "realistic". Bulgaria still features among the top property investment destinations but fast profit opportunities are decreasing.

Real estate market trends, stronger market for the reasons:

• foreigners have bought properties worth a total of 538 mln EUR in 2005
• increasing EU funding and FDI:
  • Bulgaria received 500 million EUR per year between 2004 and 2006 (around 2% of its GDP)
  • the EU will invest around 4.5 billion in Bulgaria in its first two years after accession
  • within the seven-year budget for the 2007-2013 period approved by the leaders of EU countries the funds for Bulgaria stand at EUR 11.113 B
  • and FDI flowing into the country (improvement of the infrastructure year on year)
• increasing average disposable income for Bulgarians (+ 25% in five years)
• decreasing interest rates on mortgages (from 14% in 2003 to 7% in 2005)