The current situation in the Bulgarian real estate market

Briefly about the main

According to official statistics, 2017 was one of the most successful years for the Bulgarian real estate market in the last decade. The crisis line has been overcome, the pace of construction is growing rapidly, the demand for housing in large cities is rapidly increasing. Housing in new projects is being sold out even at the construction stage: for example, in the capital, at the time of commissioning, it is difficult to find free apartments for sale in them. And even in the Black Sea resorts, where stagnation has been observed in recent years, there have been dynamics.

Bulgarians themselves are actively buying real estate. They are a nation of homeowners - with some of the highest home ownership rates in Europe. Citizens of the country consider investments in housing a reliable "safety cushion", since no other means of storing and increasing funds in Bulgaria provide such benefits as real estate. The activity of foreigners on the market has also increased: the general level of well-being has increased today, and citizens of different countries are again acquiring "second homes" abroad.

As for the Russians, they have also returned to the ranks of buyers and investors. Transactions are carried out more intelligently, the emotional factor is already behind. For the citizens of Russia and the countries of the post-Soviet space, Bulgaria has been and remains a very beloved and close state for many factors: mentality, almost free communication in Russian, proximity and convenience of flights, mild and comfortable climate, clean sea, affordable prices.

Buyer's portrait

Property in Bulgaria is purchased for recreation, permanent residence and as an investment for the purpose of renting out. The largest volume of transactions falls on the Bulgarians themselves, who often own two or more properties. But the dynamics of purchases from foreigners is also stable.

Experts note that many emigrants who once left Russia for countries such as the United States and Israel are now quite actively buying housing in Bulgaria. First of all, they are attracted by affordable housing prices, as well as a comfortable climate, which, of course, is very important for such categories of citizens as pensioners or families with small children. Just like the Russians, they take advantage of the reduced prices at the resorts and buy housing in such areas as Pomorie and Nessebar .

As for active young buyers, they prefer to buy either resort property for vacation, as well as buy or rent housing in large cities and their suburbs. Often having the opportunity to work remotely, they value the proximity of convenient infrastructure, good schools and kindergartens for children.

Regions

As in any country, when choosing a region to buy real estate in Bulgaria, you must first of all be guided by your goals. Tourist destinations remain popular for recreation - Black Sea resorts, ski resorts, mineral springs.

Investments for renting or for resale are most profitable in large cities - Sofia , Varna, Burgas, Plovdiv. This is evidenced by the indicators of sales volumes: in the capital last year, the number of transactions increased by 10%. Rental yields in the capital of the country are the highest, but similar indicators are observed in other large cities. As for permanent residence, it is also worth stopping the choice on cities with a year-round infrastructure: seasonal resorts subside during the absence of tourists, which is not suitable for permanent residence. Experts note that today there is a category of foreign buyers who buy houses in the suburbs of large cities: living in nature, they have the opportunity to enjoy all the advantages of a metropolis.

Prices

According to the National Institute of Statistics of Bulgaria, only by the second quarter of 2017, prices for residential real estate increased by 9% compared to the same period in 2016. And a similar situation was typical for the whole year as a whole: the market confidently “entered” 2018. As for the distribution by sector, during the specified period, the value of primary real estate increased by 7.32%, and "secondary housing" increased in price by 9.2%. The figures for 2016 were approximately 20-30% lower than these figures. Official statistics show that housing prices in Sofia are among the highest in the country - on average € 1100 euros. It is followed by Varna at € 777, Plovdiv at € 680 and Burgas at € 800. It should be borne in mind that these are average indicators, and prices for high-quality "primary" will be higher.

In large cities of the country, active construction is underway, and prices for new modern projects start at € 1000 per square meter, repeating the trend that has firmly established itself on the market by the last year. At the initial stage of construction in Sofia, you can buy real estate for € 800-850, subject to certain conditions. As for resort towns, prices are still falling, and you can take advantage of the current situation very “profitably”. Even for high-quality housing, the cost per square meter can be € 500, and for properties on the first coastline - € 700. This is much cheaper than before the crisis, when similar properties were sold for € 2000-2500.

Rent

Investors should keep in mind that experts recommend buying exclusively real estate in large cities for rent. The demand for apartments for rent in Sofia, Burgas, Varna and Plovdiv is always stable. The average yield is about 5-6% per annum with correctly calculated investments. Small, conveniently located apartments are in demand.

Five expert tips for anyone considering buying a home in Bulgaria

1. Decide for what purpose you are purchasing real estate and you really need a purchase, or, say, you can get by with seasonal rent.
2. Contact market professionals , cooperation with whom is carried out by the obligatory signing of an agreement - you will have to pay an agency commission, but this will certainly pay off by saving time and money.
3. If you like the object - do not delay buying it, the market is very dynamic today.
4. If you feel insecure , or you have to choose from several objects with many compromises, postpone the decision and come for an inspection when the "emotions have cooled down", at least in a couple of weeks.
5. Never buy overseas property remotely! Saving € 500 on a trip can be a lot more costly.

HomesOverseas portal . ru thanks Larisa Kostadinova ( Aurora Plus LK ) and Mikhail Kiselev ( Bulgarian House ) for their help in preparing this article .