Comparative Analysis of Return on Investment in the Bulgarian Real Estate Market

Abstract

This article analyses the return on some direct and indirect investments in the Bulgarian real estate market, while discussing their particular characteristics and advantages. As an object of our analysis of direct investments, we have selected residential properties and garages for personal vehicles, due to their clearer and simpler characteristics from the perspective of the mass investor, as well as the lower barriers for entering the market and the well-structured information available. The author offers a tested methodology which studies the return on investment by residential area and types of property in the three largest cities of Bulgaria. We also analyze the return on investment in the Real Estate Investment Trusts as a single form of indirect participation in the Bulgarian real estate market. The resulting findings can be of use to the individual investors, as well as to the real estate agencies, the investment companies, the building companies and other institutional investors.