Agricultural land in both the US and the UK has shown substantial prices increases in recent months but interest in Eastern Europe is also pushing up prices according to one consultancy.
As holiday resorts and cities in Bulgaria see a decline in interest from property buyers an increasing number of private and institutional investors see more value and profitability in agricultural and development land, says Sash Property Solutions.
Its independent research of the Bulgarian real estate market found that prices of agricultural land have risen by 40% in recent years. The consultant company attributes this new trend to the lower risk and less involvement for potential buyers as opposed to buy-to-let and commercial properties.
Compared to other European countries, agricultural land in Bulgaria is more than two times cheaper, it also found.
The trend is to buy agricultural land in an attractive location, go through the process of regulation and re-sell it for a handsome profit. Although SPS points out that this process can be time consuming and frustrating and there is no guarantee of a positive outcome.
Land near Bourgas, which was selling at €9 a square meter two years ago, is now reportedly selling for €60 a square meter after obtaining permission for development.
Land in the periphery of the bigger cities in Bulgaria is also regarded as a good investment.
'Most cities' development planning will soon feature enlargement toward outlying plots. In the long run, the land price will increase and generate an easy profit at minimum risk,' SPS said.