BULGARIAN PROPERTIES reported 30% increase in property deals with Russians

An increase in the number of property deals and price stabilization - these are two leading market trends on a beach property market according to real estate agency BULGARIAN PROPERTIES.

According to estate agents the year is going under a sign of a revival of the holiday market, driven by an interest from Russian buyers in Bulgaria. The result is 30% more deals with beach properties this summer, the agency reported.

Revival
Interest of Russian buyers is concentrated along the southern Black Sea coast - Pomorie, Sunny Beach, Sozopol, Lozenets and other resorts. The data is supported by the Registry Agency statistics, although the reported rise in sales by the agency for the third quarter has not approached 30%.

Compared to the summer of 2011, this year property deals have increased the most in Pomorie and Nessebar, where the deals are registered in Sunny Beach. These areas are mostly populated with Russians near the sea. In the resorts located south to Burgas the Registry Agency however reported a general decrease in property deals.

According to BULGARIAN PROPERTIES statistics the sales in Sunny Beach were concluded at an average price of 490 Euro/sq.m. in July-September compared to 475 Euros/sq. m. in the second quarter. The agency noted that they are mainly apartments in the west part and away from the beach in the resort. Deals with apartments near the beach were concluded at average prices between 750 and 850 Euro/sq.m. In areas near the resort prices of apartments can start from 250 Euro/sq.m.

Under the snow
Winter resorts are not yet able to fully experience the excitement that ongoing at the sea as Russian buyers much more prefer beach properties, BULGARIAN PROPERTIES reported. According to the agency, however there is an increased interest to them mostly because of the attractive prices. Leader in low prices currently is Bansko, which is the cheapest holiday property market in Europe. Prices start from 300 Euro/sq.m. and the cheapest sold apartment in the third quarter was fully furnished studio with an area of 30 sq.m for 11,800 Euro. The average price of sold apartments in Bansko was 400 Euro/sq.m. in the third quarter. Deals at a price of over 30,000 Euros practically absent, and the buyers are not only foreigners but also more Bulgarians who are fans of winter sports.

Another ski resort Pamporovo also offers good properties for sale. Currently the resort competes in terms of prices Bansko among Russian buyers. The average price of sold apartments in Pamporovo for the third quarter was 430 Euro/sq.m. In Borovets properties are traditionally more expensive, but currently the prices are very attractive. There the average price of property deals was 630 Euro/sq.m. in 2012.

Forecast
Our expectations for dynamic third quarter in seaside resorts have come true and even passed our dynamics forecasts in this segment, Polina Stoykova, Chief Operations Manager of BULGARIAN PROPERTIES, said. According to her the data from October show retaining of dynamics and it seems that 2012 will end with market optimism for resorts. Not so optimistic are things with city properties, which are much more depend on domestic demand and it is highly dependent on fundamental factors such as income, unemployment, crediting. Currently they hold the recovery of the segment.

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