Bulgaria expects its European Union accession

Jan 18, 2006 - assetz

The Bulgarian property market is tipped for big things in the years to come, with accession to the European Union one of the many factors expected to bring growth.

Accession is due to take place in 2007, although there are still a number of issues which need to be ironed out before it is guaranteed that the country will become part of the EU.

As such, Bulgaria is currently doing all it can to deliver improvements in its economy and other areas, so that its house will be fully in order by the necessary deadline and there will be no objections to its entry.

However, the country faces a potentially nail-biting wait, as the Sofia Echo has learned that Germany is not prepared to begin the process of ratification until after May 17th; the date on which the final European Commission report on Bulgaria's readiness for EU accession is due to be published. Such a move from Germany – which could be followed by other countries – could hamper Bulgaria's booming housing market somewhat during 2006. This is because the country could see property investors delaying any action until the ratification process is at least underway in all member states.

If this situation occurs, it could precipitate a slight slowdown in the Bulgarian property market as investors hold off. Concurrently, there will be bargains available to those who are willing to take a risk on the country being rejected accession at the last minute. A slowing property market would in all probability pick up once accession proceedings are on track, meaning that those willing to invest now are likely to see their properties jump considerably in the second half of the year.

The May 17th report will be of huge interest to property investors considering Bulgaria as a future investment, as it will provide an opportunity to see the progress that has been made in the country and offer a chance to predict how Bulgaria will develop in the months and years to come. That should allow investors to get a good idea of what kind of property and what locations will be most profitable in the future.

Meanwhile, Bulgaria's state officials are not waiting around for that report and are working hard to ensure that the country's infrastructure is in a good condition for accession, as well as for potential investors in the country. It has recently been announced that construction will begin later this year on a major highway, which will deliver improved transport links, stretching from Kalotina on the Serbian border, via the northern arc of Sofia's ringroad, to Bourgas on the Black Sea.

There are also impressive plans to develop terminals at two of Bulgaria's airports, a move that is designed to help increase the number of travelers coming to the country.

If the country continues to develop its transport infrastructure in this way, then more investors will be keen to put their money into Bulgaria, as it is beginning to offer investors attractive opportunities away from the hub of Sofia. EU accession would further the interest in the city, but while that progression remains uncertain, there could also be some exciting deals to be had by willing property developers.