BLOOMING BULGARIA

Brian Conneelly, Director, West Properties International

Bulgaria is fast becoming one of the hottest destinations for Irish people wanting to buy property, both for residential purposes and as an investment opportunity. Brian Conneelly explains to Niamh MacSweeney why the country is a flurry with property buyers in search of a bargain.

One of the oldest capital cities in Europe, the Bulgarian capital Sofia is thronging with Irish property buyers intent on getting good value for money and a good return on their investments. No longer just a holiday destination, Bulgaria has seen a massive influx in the number of people wishing to buy property there, in what is proving to be a very lucrative and sound investment decision.

Bulgaria’s recent entry to the EU, political security in the country and the eagerly anticipated arrival of the euro in 2010 means the country is experiencing rapid economic growth. Property buyers, clearly enthused by these developments, are arriving in the country to take full advantage of this positive progression.

Irish property development company West Properties International is a pioneer in the property market in Bulgaria. With more than fifteen developments near completion or in development stage in Sofia alone, they have properties from multi-million euro villas to more modest but beautifully finished executive apartments.

Under One Roof

Brain Conneelly established West Properties International following years of investing in foreign property and believes that Bulgaria as an investment destination has a lot to offer and will continue to deliver excellent returns well into the future. Intent on maximizing a client’s return on their investment, Conneelly says there are clear similarities between investment opportunities in Bulgaria and those witnessed in Ireland fifteen years ago. With a vision for the future of property investment opportunities in Bulgaria, West Properties International is a one-stop-shop offering all the advice and support, from legal, taxation and financial, required to successfully purchase a property in Bulgaria.

According to Conneelly the popularity and enticement of Bulgaria lies in the fact that the country has so many different aspects to offer. So be you a skier or a sun lounger you can have the best of both worlds in a relatively easily accessible country. “People ask where do Bulgarians go on holidays? Well they stay in Bulgaria because they have everything there. I can live in the capital city and in fifteen minutes I can be on the top of a mountain at the ski lift. Twenty minutes in another direction I can be down at the beach,” Conneelly says. He attributes the popularity of the country to the fabulous ski and beach resorts and to the growing number of golf courses being developed. “Golf is getting very big in Bulgaria and I think it is going to be one of the top destinations because the climate is perfect for golf,” he says.

Purchase with Ease

Conneelly is adamant that purchasing a property in Bulgaria can be done with considerable ease, provided the buyer seeks a good legal advisor before embarking on a purchase. “I find it very straightforward and a lot easier to buy a property over there than it is in Ireland. If you have a good legal team, like anywhere else, you won’t have any horror stories. If I was buying a place in Ireland without having a good solicitor or without getting things checked out, then more than likely there will be problems,” he says.

Rental Revenue

The entrepreneur assures buyers that rental yields in Sofia are one of the highest in Europe. “They are as high as 14% and Bulgarians can’t understand that the rental yields in Ireland are so low, between three and four per cent,” Conneelly reveals. He adds that as properties start to rise in value the rental yields will start to drop, however he says the return on an investment will still be very good due to the demand and because there are a lot of corporates relocating there.

“According to the Irish ambassador tourism doubled there between 2004 and 2005 and it doubled again in 2006, so there is big demand for properties,” Conneelly says. Not only will West Properties assist in all matters relating to the purchase of a property in Bulgaria, they will also look after things if you decide to rent and will ensure the property is managed and maintained. “If I sell you a property today I would do you a five year cashflow on your property where we would build in all your costs for the year. We would factor in capital appreciation and management fees so that you have a fair idea what returns you can expect to make,” Conneelly explains. He admits that with capital appreciation nobody has a crystal ball and because of that he generally tends to be more conservative in his estimations, with 10 to 15% being predicted. “However, this year alone it was 24.6% in the first four months so there is good growth there,” he adds.

Reasons to Invest

According to Conneelly there are many reasons why Irish people should consider investing in Bulgaria. He maintains there is greater risk when purchasing a property in Ireland because you have to invest too much to get a good return. However, in Bulgaria you can invest maybe a third of the cost and get more of a return. “In Ireland we would expect growth in the low single digits but in Bulgaria you are still up in the double digits, so to me it seems a safer bet. The banking system is opening up over there and you have more competition.

While Irish interest rates are rising, in Bulgaria they are dropping, so in three years with the arrival of the euro there are lot more positive things happening in Bulgaria,” Conneelly concludes.

Published in the July/August 2007 Issue of Irish Entrepreneur