Property Investment in Bulgaria

Master's Thesis from the year 2007 in the subject Business economics - Investment and Finance, Webster University Vienna (Studiengang Master of Business Administration), language: English, abstract: Inhaltsangabe:Abstract:
Many companies invest in Bulgaria due to various reasons. One reason is the tempting and overwhelming predictions. Although costs are low, investors will have a hard time increasing prices to yield return. Austria took about 25 years to develop itself to the condition it is now, although Austria is not a third world country. Bulgaria on the other hand is a developing country and the economical development will probably move slower due to their current government situation.
Due to the attractive forecasts, I believe that investors overestimate them. I believe they are true, but misleading and therefore investors take a huge risk by planning short-term goals within Bulgaria.
Investments are usually decided upon specific questions such as:
What is the scale of theinvestment? Can the company afford it?
How long will it take to pay back the investment?
How long will it take before the investment starts to yield returns?
What are the expected profits from the investment?
Could the money be used to yield higher returns elsewhere?
By answering such questions, companies also receive advices from experts and/or analysts to see if their answers to the above questions can be materialized within that country. This may depend on the growth rates, Gross Domestic Product (GDP) figures, future development plans, the predicted potential, the entry to the European Union, etc. Nevertheless, since investment in Bulgaria is increasing, one can assume that all believe that their investments will pay off.
But will they really? Why do so many companies invest into Bulgaria? The predictive indicators are attractive and tempting, but are they really as realistic as investors say? I believe that up to a certain degree, investment is profitable important, but