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Bulgarian Property & Real Estate News

A buyers market in Bulgarian properties

During the latter half of 2011, the sales manager from Bulgaria’s leading real estate agent Bulgarian Properties, Polina Stoykova commented on the Bulgarian property market trends in an interview. According to her, the real estate market in Bulgaria is still the market of the buyers. She had justified this with the help of some facts.

She revealed that the property market in the state began to stabilize in the latter half of 2010 after which there was no great change in the prices of the Bulgarian property for sale. Due to the absence of any major fluctuations in demand as well as in prices, people can conclude that the current time period is of stabilization in terms of deals and prices as well.

The official surveys and statistics of early 2011 also had shown a fall of 2% in the prices of property in Bulgaria although it is a hidden decrease. Furthermore, Bulgarian Properties collected some details that showed a fall in the prices of a few holiday homes, especially the ones in the area of winter resorts. They, therefore, concluded that on a whole, the property rates are neither rising nor falling. She also said that the company now expects the buyers to play live to buy Bulgaria property by choosing one of the best deals.

Happily, this activeness among the buyers has been seen in the apartment market of the big Bulgarian cities. However, it is the Sofia market that has now become the most dynamic one because of the highest number of demands. It is true that the buyers tend to seek Bulgaria property for sale to live, and not for investment. Even the foreign buyers are approaching for visiting properties in the country’s seaside resorts.

 

Furthermore, the property market in the regions of northeastern Bulgaria also shows that buyers are more than the deals. Varna is the only exception here because of it being the area of coastal resorts that bring in more deals and active buyers. Similarly, in the holiday home sector, more and more prospects are searching for cheap finished apartments. Fortunately, there are relevant offers and deals in the market. They concluded that what is actually interesting is the set of deals for coastal holiday homes, which conclude throughout the year and not just in the summer season.

The lady also accepted that the most active months for buying property in the country are at the year’s beginning, especially the time from March – May; as well as at the year’s end. According to the seasons, winter attracts most foreign buyers who prefer buying ski resorts, while summer attract buyers who are looking for seaside resorts. But this information is relative and nothing can be assured about its consistency, said Miss Polina.

According to her, after the commencement of the crisis, only the genuine real estate companies survive. These are the ones who invest in enhancing the quality of services. For example, Bulgarian Properties always has tried to give tips, hints, advices, forecasts, and market trends constantly.

Bulgarian properties down substantially since 2008

According to the latest reports, the value of the Bulgarian properties has dropped by approximately 50% after rising in 2008. This also includes the most demanded Bulgarian property types such as ski resorts and beach resorts.

According to the COM, the ski resort of Borovets has witnessed a hike in the demand from the investors even after the fall of prices by 18% on an average in 2011. Furthermore, one more place on the radar in the Sunny Beach that is nestled on the Black Sea shore. This is another place that is attracting the hunters for investing in property in Bulgaria. These are actually Russian buyers who are contributing a lot to sustain holiday home market

Even the price of a country home, another Bulgarian property for sale, has fallen to levels that were last observed in 2006. Bulgarian Properties that is the most prominent estate agency have revealed that since 2012, the rural properties are sold for only €15,500 on an average, which is considerably lower than €18,900, the price for the same period in 2011. The estate agency added that this lowered price for rural Bulgaria property for sale was identical to the mean price that prevailed in the 2011’s last quarter. Nowadays, one can easily buy Bulgaria property in rural areas just for a price that ranges from €10,000 to €20,000. However, it cannot be denied that a significant demand is also there for costlier houses, especially the ones that are near to a resort or a town.

The COM explained that the rural houses of the modern times are of higher quality. A majority of these properties has been refurbished to meet the high standards so that people can live in with maximum comfort. However, they are now offered at the prices of 2006, which make them good value for money. Bulgarian Properties said that the rural houses in and around the coastal regions, including Varna, Bourgas, and Dobrich; in the central Bulgaria villages; and near the cities of Veliko Tarnovo, Plovdiv, and Stara Zagora are pulling more buyers.

The latest trend is that despite ongoing falls in real estate values, a few areas are attracting the overseas property buyers. On this, the company agent explained that this is perhaps the outcome of the improved property rights in the nation. Moreover, the nation is now looked upon as a safer destination for buying houses. This is because more protection is now being provided to the property buyers in the nation.

According to the 2012 report from the Market Economy’s Index Property Rights, in the list of protection level of physical property offered in over 120 nations of the world, Bulgaria grabs the 62nd rank for obtaining 5.4/10. This is actually an improvement because the same score was only 4.9 in the year 2007. So, Bulgarian Properties have accepted that the properties in the country are safer and more affordable than before.

Is there hope for the Bulgaria Real Estate market?

According to the market analysis reports, in 2011, the property prices in the Bulgaria real estate market dropped by an average of 8% as against the drop of 8.3% in 2010. With this report, it was concluded that the decrease of the prices of real estate in Bulgaria is slowly decelerating. Therefore, the concerned agencies are in a hope that this trend will stop in 2012.

According to the survey of real estate agency Bulgarian Properties, this decrease in prices of the Bulgarian real estate for sale has attracted an increasing number of settled deals in the nation. The statistics reveal that this rise is almost of 15% considering the prices of 2010 as the base. In 2011, the paid average price for a one bedroom apartment in any of the big cities ranged from 20,000 to 60,000 Euro.

This Bulgaria real estate agency also surprisingly noticed that only the properties in the beach resort of Sveti Vlas have sustained relatively high prices despite the falling trend. To buy Bulgaria real estate in this area before three years, one had to pay even less than 1,000 euro per sq. m., but today, the prices are even higher than those in Varna and Sofia. According to the Chief Operations Manager of Bulgarian Properties, Polina Stoykova; Sveti Vlas has now become an exception as a resort with stable real estate prices.

She further commented that 2011 was not that good year for ski resort holiday homes, especially for those in Bansko, as the apartment prices since 2010 fell by 25%, which was significant. In 2011, the average price of the apartments sold in this area was 35,000 Euro, which was lower than the price of 42,800 Euro in 2010. Even the number of deals has decreased in 2011 for this area. She highlighted that prices for property in Borovets have held up much better due to the lack of development in the area and as a result a shortage of suitable properties for sale.

Polina also discussed about the rural Bulgaria real estate. She said that following stabilization in the interest for rustic options as well as a hike in the deals in 2010, the price levels were almost similar in 2011 with a minor fall in the number of sales. This was because the buyers were more interested in costly houses that were fully furbished to live in. As a result, there was a hike in the average prices of settled deals in most areas in 2011, particularly in the regions of Veliko Tarnovo and Varna. Cheap Bulgarian Properties in rural villages are no longer as popular as they were. This is due to the high cost of renovating and maintaining such properties. It is often cheaper in the long run to buy a newly completed property.

However, on the other hand, the prices of rural Bulgaria real estate in the areas of Stara Zagora and Bourgas have almost been identical to those in 2010. But in a few areas such as Yambol, Plovdiv, Pleven, and Kardzhali, the prices have dropped. This indicates that the interest in the rural properties of Northwestern Bulgaria is not that high. According to the Forton international, with 200 million Euro as the total volume, the nation has become one of the Europe’s Top 10 destinations for investment in 2011. Even the research shows that the investment deals in the continent increased by 7.8% in 2011. So, a wave of optimism has stated to show its effects on Bulgarian real estate prices.

Since the start of 2012 EU citizens have been able to purchase land and properties in Bulgaria without the need to setup a company. This has made the whole process for buying real estate in Bulgaria much easier and it is hoped that this will also increase the demand and sales.

Bulgarian Properties Price Indexes for March 2012

At the end of the first quarter of this year, the Bulgarian Properties sales indexes revealed listing prices of the apartments in four key locations: Sunny Beach, Varna, Sofia, and Bansko. The purpose of these prices was to offer the latest information about the ongoing and new market trends in the Bulgarian property market. According to the company, its indexes have remained about the same levels since the last 6 months. Therefore, it considers this point to be a good indicator of stabilization for Bulgarian property for sale.

Starting with Sofia property, the index change in the month of Feb 2012 was 0.07%, while the change in last one year was +4.55%. Further, the change measured from the highest value came up to 41.44%. The current index value for the listing apartment prices in Sofia by Bulgarian Properties is 58.56 points as of March 2012. (The base point of the index was set at 100 in January 2008) Further, the average monthly listing price is 875 Euro per sq. m. This means you can buy Bulgaria property of 200 sq. m. offered by this company in the capital at an average of 175,000 Euro. However, it was found that many deals for Bulgaria property for sale were offered at an average price of 735 Euro per sq. m.

In Varna, the index change in the month of Feb 2012 was +1.01%, while the change measured in last one year was -6.75%. The change gauged from the highest value was -42.29%. Bulgarian Properties’ current index value for listing apartment prices in this second largest city is 57.71 points as of March 2012. Coming to the average monthly price listing, it is 860 Euro per sq. m. but the deals were settled at 800 Euro per sq. m. during the year’s first quarter.

Talking about the Sunny Beach, the index change in the month of Feb 2012 was -1.91%, while the change measured in last one year was -34.39%. The change gauged from the highest value was -49.72%. However, the company’s current index value for apartment prices in this area is 50.28 points as of March 2012. Considering that this is the largest beach resort area, it is surprising to know that the average monthly listing price is 665 Euro per sq. m. for apartments. This is truly less than the prices of the aforementioned cities. Even more surprising is the fact that the deals were finalized in the first quarter at an average price of 440 Euro per sq. m.

Coming to Bansko, the index change in the month of Feb 2012 was +9.95%, while the change measured in last one year was -29.05%. The change measured from the highest value was -52.76%. However, the current index value for apartment prices measured by Bulgarian Properties in this biggest ski resort is 47.24 points as of March 2012. Despite the fact that it is a famous ski resort, the average monthly listing price here is 605 Euro per sq. m. Even more shocking was the fact that the deals in the first quarter got completed here at an average price of 465 Euro per sq. m. Well, we can conclude that a really cheap property in Bulgaria is available at this skiing destination! If you are looking for other cheap Bulgarian property in ski areas you should also check out Borovets property. It also has some very good value ski properties for sale at the moment and is much closer to the capital Sofia than Bansko, thus offering a better investment potential. Borovets apartments are very popular all year round with wealthy Bulgarians living in Sofia. They often buy a holiday apartment in Borovets and visit there at the weekends and holidays.

Buying property in Bulgaria looking more appealing

Demand for properties across Europe has increased dramatically according to the latest stats from UK property search websites.

With the recent strength of sterling it makes it a good time to buy property in euro currency countries. Bulgaria which has its currency fixed to the euro is also benefiting from this trend.  Just last year a €100,000 property in Bulgaria would have cost around £91,000, but today the exact same property can be purchased for just £80,000, resulting in a substantial saving for buyers using sterling.

Of course this phenomenon is not reserved just from Bulgarian properties. It is also the case that property in Spain and France are now cheaper for UK buyers due to the weakness in the euro zone. One needs to thread carefully however as not all European markets are at the same stage of the property price life cycle.

Bulgarian property prices for example have dropped over 50% in many areas since 2008 and in some places drops as high as 70% have been seen. However the drops stopped in 2011 as prices reached fair value. In many cases properties in Bulgaria are selling below the cost of replacement. This makes it an ideal time to invest in Bulgarian properties. The price drops have leveled out and properties cannot be constructed at these price levels. This means as soon as the current supply of properties has been sold prices will have to start rising again to accommodate the increased construction costs.

The situation is not the same in France and Spain however. On the French market there has been limited price drops over the last 3-4 years. Prices have held up well but are now looking very overpriced. Recent research form the Economist indicates that French property prices are now overvalued by almost 50%.

In Spain priced have indeed decreased over the last 2-3 years but are still over valued by up to 30% according to the Economist’s report. This means it is still not the time to buy property in Spain as there is a high chance of further price drops over the coming years.

It seems if you are looking for a stable market where price drops have already occurred and property prices have reached fair value levels then you need to strongly consider buying property in Bulgaria. Look to purchase at prices close to the cost of construction as this will give you the best chances of future property price growth. With the current strength of sterling if you are buying with pounds then you will get an even better deal.

Property in Bulgaria – things to consider if buying Bulgarian properties

The current real estate market in Bulgaria is very promising and has a lot of business opportunities for one to make a lot of money. Bulgarian properties are at their lowest price level in many years making this an ideal time to invest. Whether it is in terms of long term investments where one wants to keep the Bulgarian properties for a long period of time before deciding whether to sell it or where one wants to find property in Bulgaria for the sake of developing it and then selling it after a short while. For both types of investors, a key thing that they should keep in mind is that as long as making a profit is their key concern, the type of properties in Bulgaria that they settle for and the prices that they choose to buy property in Bulgaria. In addition to the low prices and excellent opportunities for investing in Bulgaria, the Bulgarian law regarding property ownership has recently changed to allow foreigners to purchase Bulgarian properties in their own name and provides additional protection for the buyers. We will write more about these changes to the ownership laws in a future update but for now you can be confident that the process for buying Bulgarian properties has been much more streamlined.

The first question that any person should ask himself or herself has to do with the type of property that the particular person wants. This is because there are various types of property in Bulgaria and thus one should be sure of what he or she really wants. The decision on which properties in Bulgaria one wants should be based on the particular investor’s needs and liking. He or she will have to consider the purpose for which the piece of real estate that he intends to buy will be put to use. This will also depend on the particular business that the person is involved in. People who mainly deal in apartments will look for apartment properties on sale, while those who specialize in trading in home real estate properties and who believe the current market for Bulgarian properties is favorable for such, he or she will have to look for real estate that has been designed as a home. Read more…

Bulgaria Property market 2012

Slightly more positive news is beginning to emerge from the Bulgaria property sector. Recent reports from several local real estate agents indicate that the is still life in the Bulgaria property market. Despite a difficult 3-4 years which saw a Bulgaria property crash due to over investment in several areas, local real estate agents Bulgarian Properties and Yavlena are predicting a better future for the Bulgaria property market.

Lately the Yavlena estate agency has reported that transaction level are up significantly in 2012 and investment deals have reached over €200 million. Recent sales show that Bulgaria property prices have stablised and are now beginning to over good value when yields and rental returns are considered.

The Bulgarian Properties agency has noted that higher end properties are doing better. During 2011 Bulgarian property prices continued to decline for lower end properties however the market for more exclusive luxury properties as held up better. In this sector of the Bulgaria property market the prices appear to have stabilized largely because there is a limited supply of suitable properties. In their recent Bulgaria real estate price reports they noted that properties in Bansko continue to decline due to oversupply in that area while chalets in Borovets and properties in Borovets ski resort are proving more resilient due to less supply and better quality.

The market of course has not returned to the glory days of 2008 when investors from all over Europe were clamoring to buy Bulgaria property. During the period 2003 to 2009 many overseas property investors considered Bulgarian property to be one of the investment hotspots in Eastern Europe. However when the global credit crisis hit in 2008 this had the effect of sucking a lot of cheap credit out the Bulgaria property market and thus effecting the price of Bulgarian properties for sale. Read more…

Bulgarian Properties for sale – 2012

Interest in Bulgarian property is again rising following several years of prices falls. Over the last 3 years prices for Bulgarian properties for sale and real estate sales have dropped about 35% over all. Prices falls have been higher in some areas but lower in others. Generally prices have held up better in areas with less supply. Investing in Bulgaria property is also becoming safer. Now a member of the EU a recent global report shows that property rights within Bulgaria are now on a par with other popular investments locations. Investors in Bulgarian real estate can be comfortable in the knowledge that they are protected by robust European laws. The Property Right Report highlighted that buying property in Bulgaria 2012 is now the safest it has ever been.

Bulgarian real estate agents are once again positive about the prospects for the real estate market in their country. A recent interview with the leading broker Bulgarian Properties shows that they are gradually seeing the return of foreign investors in Bulgaria. They highlight the Borovets ski resort as an area that is seeing increased demand at present. Despite falls of about 20% in the average price of Borovets property, buyers are again showing interest in the ski resort and snapping up properties and prices unlikely to be seen again soon. The prices for Borovets apartments now range from 550-1,100 euros per m2 down from 900-1,700 euros per m2 just 3 years at. At the current price levels finished apartment in Borovets are now cheaper than the construction costs reports Ms Stokova. Read more…

Foreign Investments continue in Bulgaria Properties

It is every country’s wish to have an increasing number of foreign investors choosing their country as the choice destination for their various investment endeavors. Every country tries to encourage this by use of various incentives such as tax advantages extended to investors in addition to increasing the flow of investments. This is so mainly because most countries realize the benefits that come with increased investments.

Bulgaria has managed to provide an ample environment for investors and thus making it possible for investors interested in buying Bulgaria Properties to easily carry out their transactions. This, the government of Bulgaria has been able to achieve in recent years through the simplification of the various requirements and procedures that are mandatory for one to comply with before being allowed to invest in Bulgaria properties for sale. This simplification of requirements has significantly reduced the cost and time required for people to get to own Bulgaria properties, thus making the country very attractive to foreign investors. The reduction of income and corporate taxes to just 10% has also greatly encouraged investments in Bulgaria

The country has worked to improve transparency in the Bulgaria properties market, and this level of predictability has also added to its allure as a target for foreign investors to buy Bulgaria properties for sale. Several new laws were passed in 2011, aimed at improving the quality of Bulgarian real estate agents and introducing better controls within the real estate sector. The increase in the level of investments has seen various developments in the whole economy of the country as it has meant that there are more capital inflows. This has led to the consistent developments of other sectors of the economy in the country. The buildup of infrastructure, spurred by both the increasing money flow in the country and the country’s need to boost the Bulgaria property sales has also led to increasing economical activities in other sectors as the environment in the country is being made better and better. Read more…

Buying Property in Bulgaria – consider your real estate agent

One of the wisest investments that any person can do is to buy property. This is because when done properly, it can be a constant flow of money, while also allowing you to enjoy many financial facilities such as loans. This, many people know and it is one of the reasons why property in Bulgaria is in so much demand, which seems to be increasing as time goes by. Because of this, it is not surprising that recent reports on the property values in the country are indicating that the cost of buying Bulgarian properties has been constantly increasing over the past decade.

However, the process of going about the whole process of looking for property in Bulgaria and then thereafter negotiating for better prices for the property and dealing with the subsequent legal demands placed on a buyer of Bulgaria property for sale can be very demanding. This is mainly because of the fact that there are many things that one will need to comply with before any particular Bulgarian property finally becomes his or hers.

When it comes to Bulgarian properties, most people prefer to go to a broker to help out with the whole process of purchasing property in Bulgaria. This is because many people are not usually familiar with the real estate jargon that is prone to be used when concluding deals involving Bulgarian properties. Use of a broker in most cases usually makes it easier on the buyer of the property and thus in essence saving him or her valuable time with which he or she could use in doing more productive things. It also usually ensures that the whole transaction is completed in ample time because of the fact that the broker will most likely have a great network of contacts which can help in fast tracking the whole process of buying Bulgarian property. Read more…

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