Bulgaria shines as foreign property investment

Bulgaria has emerged as one of the main countries for foreign property investment with as many Brits looking to buy there as in the United States. However, more than a quarter of enquiries for new property purchases in the final quarter of 2006 were for a Spanish second home, which is perhaps not too surprising.

The results of Moneycorp's first Foreign Focus Index show that the trend towards buying abroad shows no sign of abating. According to the Office of National Statistics 250,000 Brits now own a property abroad - and the real figure could be even higher.

The key motivation for buying overseas property appears to be how much money (or return) can be made from an investment, rather than simply the enjoyment of owning a holiday home.

Bulgaria is becoming increasingly popular with buyers from the North, West Midlands and Wales. People from these regions are far more likely to purchase property in Bulgaria than in the more traditional market of France.

In fact. more than one in ten (12%) Brits buying abroad are looking to do so in Bulgaria, spending an average £90,000. Thanks to low cost flights, winter skiing and summer sun, properties in Bulgaria certainly look to be a shrewd investment.

The Bulgarian Lev is expected to be replaced by the Euro in late 2009 or the beginning of January 2010, soon after Bulgaria becomes a member of the European Union. As the majority of properties in Bulgaria are already bought and sold in Euros, buyers looking at Bulgaria should be keeping a close eye on the movements of the Euro and sterling in order to judge the impact that this will have on the cost of their purchase.