The rise in gated community living in Bulgaria's capital

The concept of gated communities dates back to prehistoric times when man lived within the secure parameters of a cave dwelling. Through the ages this developed into groups of peoples living within fenced areas, city walls and fortresses however as the global population exploded and people began to group together in vast numbers in urban areas then traditional barriers could not be kept in place and sprawling suburbia was born.

There has always been the innate desire however to live within a set area both for security reasons and prestige; the first gated communities as we know them today sprang up on the east coast of North America in the 19th century. Over the past 150 years this style of living has grown in popularity spreading to China, Latin America, South Africa and the Middle East. In the USA alone, nearly 6% of all housing units are termed as gated communities (Journal of Planning Education and Research 2005).

Gated communities in Bulgaria are not a new phenomenon. Under socialist control only high party members lived in isolated and well protected sites however since the fall of communism in 1989 a new trend for gated community living has emerged with admission being based upon earnings rather than political status.

Bulgaria’s capital, Sofia’s, first gated communities were in the upmarket suburbs near to Vitosha mountain. They reflected the change in demand for property type from large ostentatious villas to luxury, western style apartments set in exclusive locations. As Bulgaria’s economy has grown (4.8% over the last 5 years) and coupled with the impact of increased tourism and EU accession, average incomes of Sofians have increased. They are now able to afford high quality apartments located in the ‘right’ areas away from crime and traffic congestion with landscaped gardens, parking facilities, shared amenities and 24 hour security.

The high demand for such accommodation also comes from the expatriates, diplomats and employees of international companies which have set up regional headquarters in the city. These groups desire familiar western style living with amenities on hand and those from similar backgrounds nearby.

Within central Sofia there is little room for new development and land prices are high. It is towards the south-east of the city, approximately 7km from the centre, therefore that new gated communities are springing up. The immediate surrounding area includes the Vitosha Mountain offering hiking in summer and skiing in winter and the Sofia Business Park, a major draw for developers building new complexes.

The Sofia Business Park is a multifunctional, high-tech business park covering 220,000m2 with 35 buildings, 10,000 workers and an extra 10,000 visiting per day. The ethos of the Park is “synergy at work” with a wide range of international, large and small Bulgarian companies all sharing the space. A host of well-known companies have offices within the Park including 3M, Beckers Acroma, Carlsberg, Colliers, HP, Holiday Inn, Johnson and Johnson, Allianz, Kraft, Mitsubishi, Minolta, Phillips, Puma, Sony, Unilever, BMW, Pireaus Bank, Cisco Systems, Porsche, Allied Pickfords and Hertz. These companies are responsible for significant number of foreign nationals being employed and living in Sofia.

In response to the thousands of Bulgarians and foreign nationals working in this area a next generation residential development, Mount View has been launched. Comprising 128 1 or 2 bedroom and penthouse apartments in two buildings, Mount View offers luxury living just 5 minutes drive from Sofia Business Park. Apartments range in size from 86 – 241 m2 and the complex provides amenities including a gym, sauna, outdoor swimming pool, 24 hour security and an underground parking facility. These high quality, western designed properties are affordable too with 1 bedroom apartments starting at just £81,675 / €121,417 through Bulgaria Revealed.

In addition to offering investors capital gain (expected at 20% per annum), the Mount View development is ideally positioned for year round corporate lets generating rental incomes of approximately 6.5%.

For the canny property investor, purchasing a property within a gated community should not be seen as the easy option rather the smart choice for real returns. All the indicators suggest that Sofia is on the up with vast levels of foreign direct investment, economic growth, low unemployment, budget flights, tourism and internal migration to the city by Bulgarians and so even though the concept of gated living may be prehistoric the opportunities for successful investment are very much 21st century.

For more information about investing in a gated community in Sofia or Mount View, bulgariarevealed.com.