A Review Of The Bulgarian Property Market
The Bulgarian real estate market is back in the top 10 for British buyers, the country is
at seventh place with 3.3% of all enquiries for July. Bulgaria re-paved a place in the top 10 for the most popular property markets in the world for British buyers in July, according to a new ranking. Data is based on the inquiries from the British web-site TheMoveChannel. 3.3% of the requests for the last month were aimed to the Bulgarian market, according to information from the site. This marks the return of the Bulgarian market in the 10 most popular international markets for the first time in three years. For the previous month the country has occupied the 11th place, yet the strong interest had already been registered.
The roster of the most popular locations remains unchanged. Spain tops the list for the second consecutive month. Along with the other traditional destinations - France, USA and Portugal, the leading countries represent over one third of all property searches from the side of buyers who are interested in buying a property outside the UK.
A study, conducted by "Bulgarian Properties" shows that prices in the first half of the year have fallen by 5% after a reduction of 10% in 2010. Another positive sign is the significant increase in the number of the transactions - 50%.
Construction of new homes has decreased by 26% during the recent months, but prices have fallen down by more than 6% in the second quarter of 2011, according to HomesGoFast.com.
Almost all real-estate deals on the Black Sea coast during the first half of this year include Russian buyers.
About 95% of the real-estate transactions on the Bulgarian Black Sea coast during the second quarter of this year are with Russians. Although demand is high, they prefer the lower priced apartments - between 20 000 and 40 000 euros.
Relatively optimistic are the forecasts for the development of the property market this year. Experts do not expect increases in the prices of houses and even reduction in the new construction's prices. The most positive in their expectations proved to be traders of agricultural land, awaiting activation of the segment after another two months.
The Black sea coast buyers are mainly looking for apartments at prices between 25 000 and 50 000 euros, as markets in Varna and Bourgas lag compared to that in Sofia.
Currently, property prices on the coast are some of the lowest for the last three years. The greatest interest was generated toward Sunny Beach, where supply was supreme, and the prices - between 400 and 850 per sq.m., depends on the property and its location.
Real estate agencies report less interest toward the resorts along the North Sea coast as well as South of Burgas, where prices are higher - above 800 euros per sq m.
There is a very slight increase in the prices in Varna compared to the previous year.
In Burgas it is cheaper to rent.For the last 12 months sales prices of homes in the town have fallen down with 10.06%, being the lowest for the last 5-6 years. The greatest decrease reported is in the prefab homes (16.34 %), followed by the old monolithic construction (12.24%) and the new one (8.87%).
Buyers are mainly looking for apartments with an area about 60 sq m., at a price between 25 000 and 40 000 euros.
Luxury real estate market stabilizes, and demand is oriented to houses at prices between 400 and 600 000 euros and to large apartments costing no more than 350 000 euros. However, in the past three years the depreciation marks values at 20-30%.
Properties labeled "luxury" are offered mainly in Sofia, Varna, Burgas and Plovdiv.
Article written by HOME POINT BG