NEWSLETTER

2007-09-03

04.09.2007 Investment potential in a maturing market

An estimated 40,000 Britons now own property in Bulgaria … and with some 350,000 people planning to leave Britain over the next year, the demand for properties is continuing to rise. Low prices continue to be the main attraction and, as the market stabilises, there are still few other places in the world that offer the same sort of investment potential as Bulgaria

An important indicator of the maturing property market is that there is now a noticeable shift in buying patterns. Many of today’s buyers are people taking early retirement or, increasingly, families moving to Bulgaria to secure their place on the property ladder, together with those seeking second homes as their holiday base and as a longer term investment for the future. But these buyers are now being joined by a growing wave of newly affluent Bulgarians from Sofia and other cities around the country looking for weekend or holiday homes in the resorts. In short, the consistently rising demand is maintaining the impetus of the property market - and this demand is being driven by four key factors: the low entry prices, the medium to long-term investment potential, rising local income levels and, underpinning all of this, the continuing development of infrastructure and world-class tourist facilities.

A look at the facts and figures consolidates this market analysis. Capital growth has now slowed from the headline-grabbing 35 to 40% levels of recent years and the latest investment forecasts show increases of a much more realistic 18 to 20% for this year. While buyers are no longer seeing the same sort of easy returns from “flipping” their investment through quick purchase and re-sale, the National Statistics authority says that in both the first and second quarters of 2007, the average price of an apartment in Bulgaria rose by 5.4%, with a further increase of around 8 to 10% suggested for the rest of the year. In fact, Bulgaria’s property prices are now following the pattern of what occurred in other countries following EU accession. But, as a bench-mark for comparative purposes, they are currently up to 30 to 40% lower than in Slovakia, Poland or the Czech Republic.

Probably the most important factor to consider, though, in terms of buying decisions and investment planning, is the availability of capital from mortgages. Under current regulations it is not possible to obtain a mortgage on a non-finished (or off-plan) property until the development has reached an advanced stage of construction - usually referred to as shell stage. And, while this rules out the possibility of a mortgage for many off-plan apartments, it does open up an entire new sphere for investment in both new-build and older properties. Most of the Bulgarian Banks now offer mortgage services and this will continue to develop as more and more financial institutions open up here now that Bulgaria is a member of the EU. For more details, check our website.


Share
Belle Epoque Beach Residence
French style beach–front residence in the popular beach resort of Lozenets on the Southern Black Sea coast. The complex is completely finished and fully operational. Check out the last available apartments for sale.
See More
Properties with 360-degree virtual tours
Feel the unique atmosphere of Bulgarian properties with the virtual tours we offer! At any time, with just one click, you can travel to your dream home, with no need for appointments and trips.

The virtual tours are taken personally by our team and are with guaranteed authenticity. We show you every detail of the property, just like being live in there!
See More

More News

latest news
Market trends in Bulgaria at the start of the new season

We are slowly returning to our normal everyday lives and the Bulgarian property market is experiencing a growing demand and a rising volume of deals after the corona virus lockdown.

Here are the present market trends which mark the start of a new beginning for the property market in Bulgaria:

🔵 Technology stays with us to help us in the new reality! We will ne...

19 May, 2020
Press & Media
SeeNews: Sofia's avg housing prices up 4.0% in Q1

The average selling price of residential properties in Bulgaria's capital Sofia increased by 4.0% on an annual comparison basis in the first quarter of 2020, local company Bulgarian Properties said.

The average price of dwellings in Sofia reached 1,120 euro ($1,219) per sq m in the first quarter, the realtor said in a quarterly property market analysis published last week.
...

11 May, 2020
latest news
Prices in Sofia increase with 4% in Q1 2020

High activity during the first 3 months of the year and acceleration of the price growth to about 4% on an annual basis. This is how the real estate market in the Bulgarian capital of Sofia developed until mid-March, when the state of emergency was introduced and many economic activities where put on hold.

Average Prices and Annual Change

In the first quarter of 2020...

08 May, 2020
latest news
The Sun: Bulgaria’s Sunny Beach hopes to welcome tourists by July

BRITS could return to Bulgaria's Sunny Beach as soon as July as the country reduces its lockdown measures.

To encourage tourists, beaches will also offer free loungers, sun beds and tables when they open again for business.

Bulgaria has managed to keep coronavirus cases relatively low - the country has reported just 1,704 infections, and 50 deaths.

A st...

07 May, 2020

REQUEST DETAILS