Investment potential in Bulgaria is considered to be good, regardless of the size of budget, and compared with both west and eastern Europe all real estate prices are extremely low, whether in land, existing property or off plan.  The country’s long-term prospects look good, with low inflation, structural reforms and upgrading of infrastructure, as well as a vastly increasing tourist trade and the prospect of EU membership proposed for 2007.  Already it has seen the first wave of investors particularly buying off plan in the seasonal resorts and prices are already rising, but the general forecast is that values will continue to rise at a double-digit rate with Bulgaria set to become more established on the tourist map within the EU. 

If it follows the pattern of other countries that have joined the EU, property prices will rise dramatically once membership is gained (Greece is a good example), and in any case, the current low prices indicate that any shortcoming with regards to carefully selected property investment should be should be limited., and in the long term, unlikely.  Although demand has so far been mainly from foreign investors, it is likely that over the next few years wealthier Bulgarians will also further enter the investment market, with mortgages now being offered for the first time.