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.
Now in 2012 Bulgaria property prices are at much more realistic levels and the rental returns are once again looking attractive. The Bulgarian economy has suffered less than other parts of Europe and the government debt is at a very manageable level. The economy is also benefiting from a surge in investment from across the border in Greece. Many Greek business and investors are looking to Bulgaria as a safer location for their capital as the state of the Greek economy and government borrowing deteriorates rapidly.
There is still a long road to recovery for Bulgaria property prices but with prices at more sustainable levels and supported by good rental returns the future is looking much brighter. This time the availability of credit it less likely to drive Bulgaria property prices through the roof and investors in Bulgaria as considering Bulgarian properties for all the right reasons; good growth prospects, cheap prices, good yields, stable government and low debt levels. Banks too are being more cautious in their lending and mortgages in Bulgaria are now much more carefully accessed. This is not a bad thing as it means the market is underpinned by fundamentals and not crazy credit growth.
The lifestyle buyers are also returning gradually as they can now get much better value for property in Bulgaria. Real estate agents report that modern ski apartments in Borovets can be purchased for as low as 35,000 euros while chalets in Borovets are priced at just 150,000 euros. If you are considering a medium term investment then now is the time to starting looking to buy Bulgaria property, as prices are set to rise from these low levels.