The real estate market in Bulgaria there are five-year plans: one grows, another falls, and then rising again. About when the long-awaited “Wellness” five-year plan and what it will mean for the buyer – in the material .
The price for six months remained stable
Bulgaria has entered a new five-year plan for growth which experts were waiting for all last year. Now this country does not belong to those who speak about that real estate there is getting cheaper every day: leave it Greece, Cyprus and Croatia.
According to Eurostat, in the fourth quarter of 2013, housing in Bulgaria have risen by 0.1% in the first quarter of 2014 and by another 1%. Then, in the beginning of 2014, Bulgaria for the first time recorded an increase in prices in annual terms – by 0.7%.
National statistical Institute of Bulgaria published encouraging data on the second quarter: square meter on the secondary market in Bulgaria increased by 3 levs and cost 869,29 Lev, which in terms of the European currency is equal to €444,5. Slowly, but the third consecutive quarter, average prices are rising. Considering the wide time span, now the prices are at the level of 2006, while the Golden time for sellers has fallen to mid-2008, when “square” was worth €725.
To watch in full size
In the second quarter to the first a bit more expensive Burgas (€578), Plovdiv (€489), Sofia (€754). Slightly decreased prices in Varna (€699). Three expensive cities is as follows: Sofia, Varna, Burgas. One-bedroom apartments in Sofia are sold on average €50 thousand, three – room – €70 thousand three cheapest cities includes Kyustendil, which does not save even the proximity to the capital, border with Romania, Vidin and Gabrovo in Central Bulgaria where the cost of the “square” just over €250.
Of course, the new projects being built of the coast, these rates do not apply. The primary market offers higher quality and therefore more expensive apartments. Finished apartment with views of the sea or just near the beach cost from €35-50 million, that is about €1 thousand for sq. m (for example, in Varna or Primorsko). In addition, the price depends on the prestige of the resort: expensive to include Golden Sands, Pomorie, Varna, Nessebar, Tsarevo, cheaper – Sozopol and Sunny beach.
The price increase does not mean that the era of cheap accommodation in Bulgaria ends. The market is recovering is barely noticeable, so the time to buy cheap houses and apartments in Bulgaria the buyer has. The real estate prices Bulgaria in Europe can be compared only to that of Turkey, where on the coast you can buy a home of comparable quality at the same price. And the prices for goods and services, Bulgaria has no competitors. Electricity is like in Russia – 9 cents for 1 kWh, alcohol is the cheapest in Europe, food and drink – for the second cheapest after Poland. Moreover, over the past year, consumer prices decrease: deflation of almost 2%.
Sales grow Bulgarians, and Russians – fall
Information about real estate sales in Bulgaria are not as affordable as the average price, and you have to rely on the testimony of real estate agents. Most of them say the revitalization of the market in the second half of 2013, according to rough estimates sales have increased by 15-20%. The largest number of transactions accounted for the segment of affordable housing and real estate economy class cost up to 100 thousand BGN, that is, in the range of 50 thousand euros. Bulgarians often buy two-bedroom apartments at an average price of €39 thousand
The Russians are the main buyers of property in Bulgaria and they rely on the realtors who dreams about stabilization of the Russian economy and the speedy resolution of foreign policy issues. In the first quarter, “Yandex” property in Bulgaria was searched for 20% more than a year ago, but many agents say the decline in sales. Teodora Dimitrova, Executive Director of “EPA Bulgaria” notes that in the first half of the year Russians bought in Varna and Burgas is 35% less than in the same period last year.
“The investments of Russians in real estate in Bulgaria exceeded the budget of this country”
Perhaps there is reason to associate the drop in sales with a certain saturation of the market. The number of Russian-speaking owners in Bulgaria of seven million is committed to half a million. The Russian Consul in Varna Yurii Solovyov voiced data about 500 thousand “Russian” objects in your consular district (Varna, Dobrich, Shumen, Burgas, Sliven, Yambol regions). In this case, living only 6 thousand people, and another 300 thousand visited Bulgaria regularly. Some publications claim that the Russians in Bulgaria and is owned by 700 thousand houses and flats, the total value of which exceeds the country’s budget and is equal to €18 billion.
According to Pauline Stoykova, Executive Director of Bulgarian Properties, buyers from Russia prefer the resorts to the South of Bourgas, such as Sozopol or Burgas. However, Pomorie, Nessebar and Sunny beach, located to the North of the regional capital, also do not lose their popularity. Average transaction amount the Russians have 32 thousand a Great option for those seeking a cheap holiday by the sea.
Text: Kirill Ozerov,