Properties from Times Old

Dessislava Popova, investor.bg, 15.01.2010

Traditionally, the limited supply of properties for sale in settlements with architectural reserve status has also limited the decrease in their prices compared to the general trends on the property market, a research of Investor.bg shows.

The crisis is felt mainly in the increase in the number of properties put up for sale and in the longer period for concluding a deal. Still, there is a limited number of offers for this type of property and as a whole the price reduction is quite differentiated and small. Discounts are also more difficult to achieve but they depend on how urgently the owner wants to sell the property, comment from company Address.

The common thing about all properties for sale in villages that are architectural reserves is that there is no obvious fall in their prices and price discounts are achieved mainly after negotiations with serious buyers (most often the discounts are about 10-15% from the sale price), BULGARIAN PROPERTIES point out. According to the company’s data the number of properties put up for sale have not increased since the beginning of the crisis, i.e. the supply is limited which is one of the reasons the price decrease to be small and the fact that the segment is not following the general market trends. This also makes them quite attractive for a long-term investment but one must have it in mind that the maintenance of such a property is expensive, sales agents add.

Supply
The properties vary depending on the settlement. For example, together with houses in Arbanassi (near Veliko Tarnovo) there is also demand for plots of land which can be built on. Currently, houses which need repair works do not have a chance to be noticed by buyers on this difficult property market. At a time when sellers are inclined to make serious discounts buyers prefer to invest in long negotiations than in renovation of the property. According to Address Manager in Veliko Tarnovo the new town plan of Arbanassi added agricultural land to the regulation of the settlement and that is the reason for there being a big supply of plots of land.

The offers in the architectural reserves are mainly of newly-built old-style properties that are luxuriously finished. The houses are big – of 150-200 sq.m. of living area at prices of over 100,000 Euro. For example, there are houses for sale in Arbanassi at a price of 1,200-1,300 Euro/sq.m., BULGARIAN PROPERTIES say.

Demand
The market is quite limited and there are properties which have been on the market for five years, comment from Address. The demand, especially in the last few months, is mainly by Bulgarians who have ready cash and see the purchase of a property in an architectural reserve as a good investment. According to real estate agents the foreigners who bough properties when the market was strong are now trying to sell them at a profit and find it quite difficult to do so.

Foreign buyers are very impressed by the old-style houses and have always liked them, because they value traditions and cultural heritage, but the price plays and important role. Most of the buyers choose among the thousands of cheaper houses in the nearby villages unless they plan to make a living from tourism and renting out, which is also possible in the less popular villages because there are many ways to advertise and attract tourists, BULGARIAN PROPERTIES comment.

Added historical value
Undoubtedly, the famous architectural reserves add a higher “historical value”. This is most obvious in Arbanassi and to some extend in the villages of Zheravna and Bozhentsi. For now the villages of Kovatchevitsa, Leshten and Dolen are not as popular. What is interesting is the behavior of property owners in Arbanassi who are not willing to make big discounts having in mind the past and present popularity of the location. They believe that their properties are too valuable to reduce their prices substantially. Prices of houses in Arbanassi are about twice as higher compared to those with similar parameters only 20 km from the village. It is exactly the high prices that define the relatively low demand. There has always been interest in such properties but the prices are high and that is what drives buyers back – both Bulgarian and foreign, comment from BULGARIAN PROPERTIES.

Offer prices
According to the data of Address the quality historical properties cost around 100,000 Euro. In Arbanassi prices vary from 40,000 to 800,000 Euro, in the village of Zheravna prices are around 150,000 Euro, in the town of Koprivshtitsa there are offers from 40,000 to 500,000 Euro, in the village of Bozhentsi prices are from 25,000 to 750,000 Euro and in the town of Kotel – from 30,000 to 150,000 Euro.

The data of BULGARIAN PROPERTIES is similar – the most expensive house in Arbanassi is offered for 760,000 Euro and the cheapest – for 49,000 Euro (about 220 sq.m. of built-up area), but it is in the villa zone of the village and needs complete renovation.

The parameters of the houses in the villages of Leshten and Kovatchevitsa are similar to those in Arbanassi – mainly newly-built big houses of 150-250 sq.m. at prices from 100,000 to 200,000 Euro. There are also offers for plots of land but prices there are high – for example a plot with an old house on it that needs to be knocked down costs around 30,000 Euro (the area of the plot is 100 sq.m.) which makes the price about 300 Euro/sq.m. There is interest on the part of Greeks and a lot of Bulgarians are also looking for a holiday home. However, once again high prices define the slower dynamics in the segment. One can also find some houses at a different stage of completion whose owners obviously do not have the resources to finish them, as in this case the buyer can negotiate quite a good price.

In the area of Kotel – the villages of Zheravna, Medven, Ichera, etc. there are properties with similar architectural style. Prices there are similar to those in Arbanassi – about 1,000 Euro/sq.m. What is also typical for Zheravna is the low demand and supply as the owners of such properties are not pressed by the crisis, they use their properties or rent them out and are not looking to sell. The difference in the prices there and in locations only 10-15 km from Zheravna is great.


  read more articles

• Print
• Ask for free advice