|
Foreign-investment-pushing-up-Bulgarian-real-estate
Bulgaria property investment.
New research has revealed that foreign investors are having a growing impact on the property market in Bulgaria.
As the country continues to embark upon its fledgling growth ahead of accession to the European Union next year, the property market has maintained its phenomenal surge and the statistics from the latest study suggest that the property sector is contributing an increasing amount to the overall economy.
According to figures published recently, the Bulgarian economy was boosted by a massive €8 billion of investment in property over the course of 2005. And further, the results show that of that investment, between 15 and 20 per cent of it came from foreign nationals, as
property investors seek to get their hands on some potential bargains.
Recently, Assetz chief Stuart Law described Bulgaria as the "darling of the property market" because of its huge potential for growth and the fact that it has some of the most attractive resorts in the world, particularly for skiers.
That assessment has clearly been heeded by many investors, both in the UK and abroad, as investment in Bulgarian property exploded over the last 12 months.
It is anticipated that such investment will continue to grow at a great pace up until and immediately after the country's accession to the EU, as the country will become more accessible to other European investors.
Earlier this month, the Bulgarian government also released statistics revealing that the country witnessed a 22 per cent year-on-year growth in the number of real estate deals occurring there during 2005. These figures highlight the enormous potential that many investors see in the country and the growth of the Bulgarian economy looks set to further
add to that income.
With accession to the EU on the horizon, the Bulgarian authorities have been working hard to ensure that the country meets the Union's strict guidelines on economic stability and other factors, which are required before the state can become a member of the EU.
One of the consequences of this has been to provide investors with more confidence in the Bulgarian economy and as such more people are willing to take a chance on investing their money into property in the region, feeling that the market is unlikely to suffer any crash and that the political situation is also stable enough to bring good returns on their investments over a long or short period of time.
Another area which has received attention ahead of EU membership is that of the country's infrastructure, which is undergoing a major overhaul. This means that Bulgaria is now more accessible and areas in the mountains near ski resorts are becoming more attractive year-round investments, as links to these remote areas improve.
Baby-boomers set to push UK property market
It has been claimed that the UK's property market is set to benefit from an explosion in interest from baby-boomers.
According to new research carried out by Prudential and Datamonitor, the post-war generation who were born and grew up in the aftermath of the Second World War are about to start looking for the best retirement packages, with second homes high on their list of priorities.
The study discovered that their homes are currently worth a combined £543 billion across the UK and that figure is set to increase over the next 15 years to £1,425 billion as the youngest of the baby-boomer generation reach retirement age.
An increasing number of people are considering investing in property as a way to supplement their income when they retire, with many believing that a pension will be inadequate for their needs. And it appears that the baby-boomer generation shares that sentiment, as many are preparing, or have already, invested in property to provide them with a regular income in their retirement.
"Property can form a great part of a retirement planning portfolio," commented Ali Crossley, director of lifetime mortgages at Prudential UK.
"It may be too late for people approaching retirement to build up a supplementary source of income using a pension, savings or investments. However the equity tied up in their homes could be instrumental in boosting their funds."
And it appears that a move to release that equity is exactly the move that many baby-boomers are planning over the coming years.
With the arrival of A-Day coming ever closer and the number of people who have invested in self invested personal pensions (Sipps) remaining high despite the chancellor's announcement in the pre-Budget report at the end of 2005, it appears that many people approaching retirement age are about to free up the considerable amount of equity tied to their homes.
The number of people investing in second homes, both in the UK or investment hotspots across the globe such as Spain or Bulgaria, is therefore likely to rise significantly over the months ahead.
Many baby-boomers are keen to get their hands on the equity in their housing to fund the purchasing of second homes, which can provide them with two benefits in their old age. This is because it will not only act as a source of income through renting it out, but it also offers the opportunity for cheap holidays in parts of the country or world which they are attracted to.
With fewer commitments during retirement, this appears to be another attractive reason for the baby-boomer generation to become owners of second homes, or to even build up a portfolio of properties.
Bulgaria property investment.
Author a experienced property analyst.He has been researching on property investment in UK .Since 10 years. Presently he is with www.assetz.co.uk/. |
|
