Wed, 28 Nov 07
An injection of funding from the EU is helping Sofia’s property market...
Bulgaria continues to improve on its position in the Assetz Investment Tracker, topping the table of latest figures with a total of 84% return on cash invested. However, rental yields are not what they once were due to a severe oversupply in some of the tourist locations. Local agents are reporting a lack of demand and Assetz continues to advise caution in these areas.
The Capital, Sofia, has a burgeoning local economy and is currently benefiting from major development of its infrastructure thanks to an injection of funding from the EU. This is the most likely source of capital gains in a resale market that remains relatively unproven so far in Bulgaria, and poor rental figures for the country as a whole should not be reflected in the potential for high rental yields in Sofia.
Elsewhere, high prices are continuing to drive the need for rented accommodation in established locations across the continent, with net rental returns of 7.5% and 8.6% on cash invested in Portugal and France respectively. In spite of the recent credit crisis, the UK still offers similar opportunities, and offers attractive returns for medium to long-term investors compared with other global destinations.
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