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Overview Of The Property Market In Bulgaria

 

The property market in Bulgaria is thawing but few are making predictions for a recovery in the near future. It is declared that the affordability of prices is the key for its recovery and is going to save the market, but is it in fact so?

The property market in the ski resorts suffered a total failure during the first three months of the year. This time last year the number of sales registered was 50% higher than that as of the beginning of year 2011, a prominent broker announced. Moreover, that ski season was the weakest ever.

Greeks who started purchasing real estates in Bansko last year pulled out because of the severe economic crisis in their country. The Russians who were the major group of buyers of holiday properties expressed little interest in ski resorts. In addition, the Brits were still missing from the market, although some interest was noted in the segment of cheapest properties (with price up to € 20 000).

As an outcome, the supply in the ski resorts has increased twice compared to that as of the winter of year 2010. Mostly entirely finished and fully furnished apartments of British and Irish citizens have been resold. As from the beginning of the year, the statistics shows that the resale's prices of properties in Pamporovo are in the range € 650 - € 1200 per sq. m, in Borovetz- € 950 - € 1600, in Bansko- € 350 - € 800.

As a reference, based on the prices of apartments sold for this year, the average price in Bansko is € 585 per sq. m. In another winter resort- Pamporovo, the resold properties were with prices in the range € 450 to € 500. Unfortunately, in Borovetz there is very little interest into buying in the region.

An increase of interest in the seaside resorts had been observed during the winter season too. The number of sold units on the South Black Seaside is 40% higher than the figure for the same period in year 2010. Particularly, most of the deals are carried out in Sunny beach for apartments with prices from €400 to € 700 per sq. m. The price levels at which those units are cleared are the same as those from year 2010.

Something which has changed neither in winter resorts, nor on the seaside, is the preferences of the buyers toward purchasing fully furnished apartments in operational complex. Buyers are mainly Russians. Some brokers discover a slight return on the market in the face of the Brits. Other group of saviors is that of Swedes and Germans.

In the region of Varna the segment of luxury homes started to develop with prices above 100 000 Euros. There is interest also toward the nearby village houses.

The above presented information and figures summarize what is going on in the holiday property market during the first quarter of the year, and make some retrospective review to the situation in the same period from the previous year. However, prediction is always subject of subjective opinions. That is why it is always good to refer to experts in the industry for more detailed evaluation.

On the last BALREC conference held in the Sheraton hotel in Sofia a week ago, a representative from MKB Unionbank confessed that the property market will be driven mainly by sales of properties that offer extra value added  promotions, when buying a unit such as free  furniture or garage, etc.

The time will show whether this was the right perspective!

Written by HOME POINT BG