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Bulgarian Property & Real Estate News

Bulgarian properties down but not out

The latest report from the Bulgarian Properties real estate agent in Sofia shows that prices for holiday properties across the country have dropped in 2011. The largest drops were in Sunny Beach and Bansko where prices are now less than 50% of the level they were in 2008. In terms of the ski resorts there is still a large over supply of properties in the Bansko area and this is forcing prices lower. Average prices in Bansko are now around 400-460 euros per m2 however there are still many properties available on the market so buyers must be cautious. Prices for Borovets properties are stronger as there is very little supply in the area.

UK holiday home purchasers have been replaced by Russians as the largest purchasers of Bulgarian holiday properties. Investors from Ukraine, Greece and Serbia are also showing interest in Bulgarian properties.

In Sunny Beach the price drops have been even more dramatic and in some cases properties are reduced by up to 60%. Buyers are advised that while prices are now very good value and in many cases the sale prices are cheaper than the cost of construction, they must still be cautious and research each property carefully. It is particularly important to check the status of the property and ensure that there are no outstanding loans or mortgages on the property. It is also good to check that a management company is in place for the development to ensure that the property and complex are maintained in the future.

The advice from Bulgarian Properties experts is to stick to the locations where there is less property supply. For Sofia property they suggest the Lozenets and Doctors Garden areas. For Black Sea coast they recommend Sveti Vlas and for the ski regions Borovets is the least overdeveloped and demand remains the strongest there from both local and foreign investors.

Overall the number of Bulgarian real estate transactions has decreased significantly since 2008 however there are signs that the market is beginning to recover again. Prices are now so low that it is not possible to build new properties at these price levels. This is putting a floor under prices and encouraging investors to once again consider Bulgarian property as a good investment. Compared with other similar European countries the property in Bulgaria remains very cheap.

If you are looking for Bulgarian real estate or off plan property in Borovets look no further than Concept Bulgaria.
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