The city, famous for its historical ruins (such as Tsarevets Castle) and lush green surroundings, is located in central northern Bulgaria, and served as the country's capital during the second Bulgarian Empire. "The city combines the atmosphere of old Bulgaria with a modern lifestyle," says Ivelin Ivanov of VT Bulgaria, an estate agency based in the Veliko Tarnovo region. "People like the interesting architecture of the old part of the town, which is preserved with its medieval look, but the city also has a well-developed modern part with many shops, hotels, restaurants, discos, etcetera," she adds.

Up until two years or so ago, those interested in purchasing property in and around the city were likely to have been people wanting to live in Bulgaria on a permanent basis. "There are many villages around the city which have more than five English families living there permanently," says Ivanov. Recently, however, as tourism to the city – and indeed the entire Veliko Tarnovo province – has continued to increase, so too have the number of investors viewing property in the city as a potential money-making investment. "Many of the tourists who come here become property seekers and eventually purchase a house or apartment in the area," Ivanov continues. "This has led to increased interest in newly built or renovated properties. More and more new apartments have been bought by foreigners as an investment, and they then rent them out to localpeople or other foreigners."

Aside from the city's rich history and natural surroundings, the region's low property prices have been key in attracting interest from investors. "Despite an increase in house prices in recent years, one can still buy a small village house in need of repairs for 10,000 euros or less, although in many cases these properties need total renovation," warns Ivanov. "Houses in the old part of the town are most expensive. They can reach 100,000 euros and more."

Ivanov believes that there is not much room for further house price increases in Veliko Tarnovo at present, meaning investors would need to rely on rental income to make money, rather than capital appreciation. But if making money's not important to you, then you may just find Veliko Tarnovo an ideal place to own a property for your personal pleasure.

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Other articles about Bulgarian property:
Sofia: old or new property?
Where to buy homes in Bulgaria

Article published November 2007