Sofia Investment: Economy
Investors in Sofia properties' first concern is Sofia's economic performance. As the capital of Bulgaria, Sofia is the main beneficiary of Bulgaria's recent economic boom. Bulgaria GDP growth between 2005 and 2007 was in excess of 6% annually, a trend that is set to continue. Much of this growth took place in Sofia, which has become a major employment centre in Bulgaria. Thousands of migrants are attracted to Sofia - mainly businesses located in Sofia city centre - with forecasts predicting over 100,000 new inhabitants for the city over the next 5 to 10 years. This massive increase in Sofia's population adds greatly to the potential for Sofia property investment.
Sofia has benefited hugely from foreign direct investment in Bulgaria and is the recipient of almost half foreign direct investment (FDI) in the country. Business centres such as Stolichna and Sofia Airport Center, a major future business hub, are magnets for multinational and Bulgarian companies. The subsequent demand for housing is an additional factor in property investment in Sofia with plenty of Sofia off-plan development currently taking place. Areas such as Kostinbrod (north west Sofia) are prime Sofia real estate investment spots.
Sofia Investment: Tourist Potential
Sofia is one of Europe's oldest cities and boasts magnificent architecture. The increase in budget flights to Sofia - Sofia International Airport has recently been upgraded - has helped to make Sofia popular for weekend stays, adding to demand for short-term tourist accommodation. Properties in Sofia, particularly apartments in Sofia city centre, therefore offer possibilities for rental potential as part of Sofia property investment.
Sofia Investment: Property Market
Sofia's thriving economy and tourism are also joined by a booming property market. Bulgaria land and property investment generally is showing excellent returns (increases were over 25% in 2007) with Sofia property investment also experiencing impressive gains. Despite a lot of new development in Sofia, the demand for Sofia property still exceeds supply (a major consideration for property investment in Sofia). Demand is particularly strong for luxury Sofia properties and developments in outlying areas - Kostinbrod, within easy commuting distance of Sofia city centre, is worth consideration in a Sofia property investment portfolio.
