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High End Properties Increase in Sales

Bulgaria as a property investment market has had a bad deal of late in the UK. Media fuelled with stories of over-development and alleged under performance have taken the spotlight off this maturing property hot spot, leading some to believe that the boom is over and other markets are where the money is. One of the key reasons for Bulgaria’s dimming spotlight is the fact that many investors looked to Bulgaria for low entry costs into a booming market. Today, the lack of sea view apartments under 45,000 Euros or western standard villas next to a ski lift and costing under 80,000 Euros has left many with the impression that Bulgaria has been and gone.

However, whilst Brits have taken their eye off this sparkling ball, properties are being snapped up by unnoticed European neighbours, who recognize the positive changes happening within the country and over the last year prices have risen by 31%, so much so, that investment experts are changing their characterization of the market from “emerging” to “stable” and “mature.” Those who wrote Bulgaria off as a “cheap and cheerful” destination need to take a fresh look at this promising market.
In the midst of this upward trend, a new luxury market is emerging instigated by expats working for large multinationals, the massive growth in Russian buyers and from Bulgaria’s rising middle classes, who are now taking advantage of a range of mortgage facilities to make the purchase of a luxury property that much easier.

Affordable Luxury

The need for larger, more luxurious properties in prime city, beach and ski locations has stimulated the market growth. Obelisk Market Analyst, James Gonzalez commented that, “Luxury properties are still within an affordable range for many overseas buyers, compared with more traditional markets (such as Spain or Portugal). A luxury apartment in Sofia’s commuter belt averages around £100,000 – you would be hard pressed to find a good apartment in the Costa del Sol for that price."

The increase in demand for high-end properties has encouraged developers to improve and expand on the quality levels of new build properties as well as to refine the facilities and amenities surrounding new complexes. Many developers are now offering top-end properties constructed to a high standard of design and build.

Additionally, luxury properties stand the test of time. They attract a better class of buyer, resell well and provide solid rental income particularly with the influx of foreign tourists from neighbouring countries.

One thing is certain though; Bulgaria will remain an attractive property hot spot for many years to come. More and more younger middle class Europeans are either moving here permanently or buying a second home; In the UK alone more than 200,000 people are looking to move abroad this year and Bulgaria’s beauty, ease of access, low cost of living and inexpensive property prices are set to fuel further growth. Charlie Lambourn-Brown, Exhibitions Marketing Manager believes that, “Bulgaria offers investors a strong potential rental market, but also in time a well established holiday and in the long-term a lifestyle destination.”