Deals in real estates in Bulgaria have reached a total of BGN5BN

and a considerable part of that amount is due to foreigners willingness to buy, land, villas, or housing in this country. In fact, business in real estates is one of the most quickly developing ones in Bulgaria and has become the main source of attracting foreign capitals into the country. Some banks' heads already tell about people whose monthly incomes were in the range of BGN400-500 a year ago and who became millionaires after they sold some immovable property. Foreigners really show great interest towards land and housing in Bulgaria. It turns out that its scope has already impressed domestic credit institutions and they are launching special products in order to extend loans to foreign citizens who want to buy houses, flats or plots of land in our country. Principally, clients pay for such deals by money from their accounts or bank loans received in their respective countries. But it turns out that there are investors who for one reason or another are inclined to use the services of Bulgarian credit institutions as well. According to our bankers, foreigners resort to the services of our institutions in several cases, the first one is when they have exhausted the credit limit in the banks servicing them. Usually, each citizen of a Western country has at his disposal a certain ceiling of financing from his bank which is calculated on the basis of his monthly incomes. Thus, if that limit is exhausted his only possibility is to address a Bulgarian credit institution and apply for a loan.

The second case when foreigners turn to a Bulgarian bank is when their local credit institution assesses the risk as too high and refuses to release a loan for the purchase of property in our country That cannot be ruled out because for a bank outside the country it would be extremely difficult to control the real security which is in Bulgaria. Besides, any action in it is effected in compliance with Bulgarian legislation and lawyers of a West European bank are hardly acquainted with it. Thirdly, foreigners address Bulgarian banks for loans because they use the services of domestic real estate agents.
Most local companies trading in real estates offer also bank financing of purchase deals. According to the Executive Director of United Bulgarian Bank (UBB) Stiliyan Vutev, interest rates on mortgage credits in euro, offered by the bank - 6.5% a year -are not much higher than those in Great Britain where such loans are extended at 5-5.4% annual interest.