11.07.2017 Holiday Homes in 2017 – Stability and New Markets
Polina Stoykova MRICS, Managing Director & Head of Research
One of the new markets is naturally the local one with Bulgarians already accounting for 50% of the buyers in the biggest sea and ski resorts. In some of the regions they even represent the main group of buyers - in the seaside resorts to the South of Burgas, and in the mountain resorts Borovets and Pamporovo.
There is also a stable foreign demand for holiday properties in Bulgaria which has survived through all the crises, and the range of buyers' nationalities is constantly growing. Since last year, there has been an increase in the interest of buyers from neighbouring countries and from former Socialist Block countries such as Greece, Romania, Serbia, Macedonia, Ukraine, the Czech Republic, Moldova, as well as from various European countries.
What is new at the beginning of this summer season is the awakened interest by Russian buyers in the seaside resorts which brings expectations that they will be much more active compared to the previous years.
This year the sales volumes and property prices have remained the same as last year.
The average price at which deals are made in Sunny Beach during the first and in the second quarter of 2017 is 530 Euro/sq.m. compared to 505 Euro/sq.m. in 2016. The total purchase price of the apartments in Sunny Beach this year is also without a significant change - 32,200 Euro in 2017 compared to 29,200 Euro a year earlier. Property prices in high-class apart complexes are at levels from 750-800 Euro/sq.m.
To the South of Burgas, the average price of the apartments purchased in Sozopol is 600 Euro/sq.m., with prices starting at about 500 Euro/sq.m. and reaching levels of 1600-1800 Euro/sq.m. in the top complexes on the Southern Black Sea Coast.
Similar to the seaside resorts, there are no significant changes in the property markets in the ski resorts too. Generally, last year's trends in prices, sales volumes, and mix of buyers remain the same.
The average price of the sold apartments in Bansko in the first quarter is 370 Euro/sq.m. and in Q2 - 360 Euro/sq.m. compared to 366 Euro/sq.m. for the entire 2016. The average total purchase price is 25,200 Euro in 2017 compared to 24,700 Euro last year.
The prices for the high-end hotel complexes in Bansko start at about 450 Euro/sq.m., with the tendency for a slight increase in prices of this type of properties.
Borovets continues to be the most expensive ski resort. The average price for the second quarter based on real deals is 600 Euro/sq.m. compared to 595 Euro/sq.m. last year.
In Pamporovo the average price during the second quarter of 2017 is 340 Euro/sq.m. – again no major change since last year.
Conclusion and recommendations
In conclusion, the holiday property markets in Bulgaria are now offering very good opportunities with attractive prices, a variety to choose from, and enough time to make up your mind and make a purchase decision, and the summer season is particularly suitable for that.
The two holiday property types are now clearly distinguishable. One of them are the vacation properties that have the characteristics of residential property, while the other are the properties in complexes with a number of extras, reception and maintenance, that are designed to work as hotels and have already gained experience in this activity and can show results. The difference between the two classes of property is in prices, in maintenance fees and perhaps the most important - in their potential to be leased and generate income.
When buying a holiday home, it is recommended that you define what the purpose is. If it is a holiday home for your own use and better lifestyle, then the residential holiday homes are a good option at very good prices, low maintenance fees, furnished and ready to be used. If you are looking for an investment for rental income, then it is good to consider a higher-end property that will have higher maintenance costs, but also the potential to generate rental income.
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