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Back You are here: Home Property Building and Renovating Off Plan and Developers in Bulgaria

Off Plan and Developers in Bulgaria - The Banks

The banks

The Bulgarian banks have become particularly careful in their lending, especially in the ski and sea resorts. In general, lending is restricted to 60% of LTV and more stringent criteria now apply for proof of income from applicants. Interest rates are high in Bulgaria. However, if you are funding your purchase from, say, Britain, then interest rates are at an all time low, so if you can get funding and lock into a rate, now is the time to do so.

Few buyers, little money, so less building.


The largest impact has been in the sea and ski resorts, together with the cities where there has been a mass of new builds. Completed partments with sea views in Kavarna on the northern Black Sea coastline are on sale for as little as 390 euros a sq.m, which was unheard of 12 months ago. Prices have been slashed in the south at Sveti Vlas and Sunny Beach, with prices for large 3 bed apartments as low as 64,000 euros. A new foreclosure internet site is available for repossessed properties and several agents are actively advertising below-market-valuation properties.

One of the better pieces of news from this current mess is that it has really shaken down the property development market sector. Less buildings are being constructed, less plans for permission are being submitted. Those developers who remain in the marketplace are those which are financially stable with a long term view. Bulgaria may at last have a real opportunity now to look carefully at the property market and create a situation where mass-development is prevented.

For the majority of people who have bought in Bulgaria, things have worked out fine and many have made significant financial gains, with huge numbers having got lots of enjoyment out of their properties. In general, these buyers were the ones who were very careful from the outset. In the meantime, for the less fortunate who have to sell or are forced to bail out, serious investors are gathering like vultures for the bargains.