BULGARIAN PROPERTIES Operations Manager Analyses the Rental Market in Bulgaria

Milena Bogdanova, Imotat Magazine, April 2009

Polina Stoykova, Chief Operations Manager of BULGARIAN PROPERTIES:

There is a supply of quality properties on the rental market. It is a result of the many newly constructed apartments bought in the last few years for investment purposes and/or resale. These apartments are finished and furnished and their owners are renting them out. The other type of lessors are owners who cannot sell their apartments due to the slowing down of the market as well as those who pay their monthly installments to the bank with the rental income from the property. Due to the increased supply the tenants also look for lucrative deals. They usually try to negotiate a reduction of the price by 20-50 EUR which makes 8-10% of the initial monthly price.

We are certain that Bulgarians will not change their way of thinking so the percentage of the owned properties will not fall drastically. There probably will be a period of one or two years during which buyers with lower or more uncertain income will not buy property with mortgage loans but will prefer to rent.

As for the future, rental prices are not expected to increase significantly because the supply is quite high as well. The rental market must be viewed as being closely connected to the sale-trade property market in Bulgaria and to the economic development and stability of the Bulgarian citizens and the companies operating in the country.

We would advise the lessors to consult a specialist who will help with defining the price and with finding tenants, with setting the terms and conditions and drawing up the agreements. Often owners do not have up-to-date information about the prices on the rental market and they sometimes increase the price due to sentimental reasons. We also advise the landlords to inform the tenants of any hidden defects and problems which would become apparent at a later stage anyway. We tell the tenants to choose carefully the property that suits them best.

Professional real estate agents offer the service of finding a property based on a set of criteria specified by the client. This saves the client a lot of time and efforts in finding the right property.

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