Bulgaria: invest wisely

02.01.2014 01:15
Articles about real estate | Bulgaria: invest wisely The most popular among foreign property buyers destination - Bulgaria - attracts's certainly not the financial stability and the desire to make money. However, no one wants only purchase understand that the money you lost. So, can you buy today is not just something in "the former 16th Soviet republic", but also to earn ...
National situation

Bulgaria, like most countries in Eastern Europe, overcame all stages of interest in their property - and , as a consequence, all the stages of change in prices . In the late 90s the country interested in foreign investors : low rates , sea, pleasant climate ... Thousands of Europeans , especially the British and the Germans thought, " why not ?"

Related article: Responsibilities of owners, property maintenance, taxes and fees

Under their strict supervision , since the beginning of the XXI century began to form the modern real estate market in Bulgaria. Appeared at major resorts and residential complexes apartment hotels . Drastically changed Sunny Beach and Golden Sands , and behind them , and small settlements along the Black Sea coast . Began to develop infrastructure . Went to the rise in prices .

In 2002-2003, the cost per square meter in the country amounted to € 250-300, and by 2007 it amounted to € 1,000. It was the peak ...

The crisis did not ignore the housing market in Bulgaria , the country experienced its softly but very painful. Since the beginning of the recession on the average Bulgarian housing devalued by a third. In 2008-2010 , there was a significant decline when square meter returned to average around € 400 . Then , in 2010, prices have risen slightly , but then froze - and now it is growing on a drop , then decline. Now Bulgarian "square" sold an average of € 600-650.

But - appeal ( in a sense, and investment ) give Bulgaria , above all, they - the lowest prices . Actually, according to this indicator among European countries resort to it can be compared to that of Albania , but its most do not even consider . And in Bulgaria , besides , very inexpensive life and property taxes on small - only 0.3 % of the cost of housing.

Nevertheless , few people acquire housing is for investment purposes . Most often it is buying for yourself - to relax. We value geographic proximity , similarity of languages ​​- in general, what is called a similar mentality.

But - we repeat - the interest of Russians can not ensure growth of the Bulgarian real estate. Even on the most famous resorts of the country are unfinished , whose owners are waiting for better times.

Sergei Natalenko («BG Hot Property»): " Bulgaria a few years ago to join the EU . Though little of the funds of the association , she managed to implement infrastructure improvements are already evident . Besides, now sell real estate in Bulgaria English and Irish - with big discounts . Thus, the investor has a real opportunity to buy a home for nothing ... " .

Grief Varbanov («New Estate»): " You can say that people who have bought and sold real estate between 2000 and 2008 - have earned . During this period, the percentage of growth in property prices in all segments of the market expressed in double figures . But whether buying Bulgaria to invest ? answer this question briefly - probably no . "

Entry threshold

The minimum amount for which you can buy a property in Bulgaria is less than € 5 thousand seriously consider such housing inostrantsyne . And not only because of its investment attractiveness is zero. It's just a substandard houses , away from the tourist spots , interesting except hermits . Illiquid options , either now or in the future.

And on resorts have cheap objects - about € 15 thousand It certainly is , a very small studio, and not on the sea , and in depth , about a kilometer away from the beaches. But these options do have , mostly on the secondary market .

Although to generate revenue from your property , we should focus on the amount of at least twice as large . Many realtors and a figure of € 25-30 thousand is considered low , recalling that the demand is now clearly inferior proposal. Moreover, in their view, only expensive , exclusive objects are guaranteed to find a buyer after a while.

By the way , the prices at various resorts of the country differ greatly from each other. So , in Saint Vlas square meter is € 800, Sunny Beach - € 500 , Nessebar and Pomorie - € 800-1000, Burgas - € 600-650, Sozopol - € 700.

Sergei Natalenko : "In terms of growth in housing prices the most promising cities are Pomorie and Ravda . My advice - in order to invest in real estate properties have been really successful, we must first determine for yourself what you want. Start with city selection then - the area, and only then - the particular apartment. That is slowly step by step to move towards the implementation of purchase. should definitely visit the place and see the object . "

Alexander Zvezdanov ( " Trem BG ) ": " Now the country's stable property prices, they do not grow and not drop . Nobody on resale property is not earning . Most liquid are one-bedroom apartments . They are very high demand. Most good prospects house price growth in Bulgaria in the big cities - Sofia , Varna, Burgas " .

Prospects for sale

Everyone who bought a property in Bulgaria in the late 90s , had the opportunity to make money - prices rose rapidly . But here are the ones who bought a house in Bulgaria five years ago and plans to sell now - lose . Probably about 50%.

In the next two years even optimists analysts expect growth in the housing market at a maximum of 3-5%. This can be called insignificant increase therefore correct to say that prices will remain stable . But - given the experience of recent years - well already and that people who invest in real estate in Bulgaria now, nothing to lose .

In the short and medium term, expect a miracle is not worth it . But if you buy a property for a longer period , you can count on financial success. However, consensus on the prospects of the market in Bulgarian realtors not.

Varbanov grief : " In the medium term we can hope for " capital gains "- making a profit when reselling the property. Serious figures But I would not count . Should be borne in mind that the property prices in Bulgaria is still not much , but reduced. This is not only residential , but also commercial real estate - the sector most affected in Bulgaria . If the residential sector is already noticeable movement and optimism that commercial real estate is still in a serious depression . on some successes investments in this sector, currently , we can only speak when purchasing class A office space at low prices , located in the central areas of large cities, mainly in Sofia . "

Sergei Natalenko : " If you go to market quickly and purchase property right now, in a few years you can earn about 20 % of its value . If the filter housing slowly , you can even reach 40 % profit over a certain period of time . terms of resale is the main criterion of liquidity floor area . "

Prospects for rent

If opinions about the prospects of the market experts, it is evaluating the possible rental income , they are unanimous . Despite strong interest in Bulgarian resorts by the tourists , there is no rush . For several reasons.

Varbanov grief : " If you're happy with 7% per annum , then the answer to the question" whether it is possible to earn a lease "- yes, the best indicators currently provide residential facilities in the capital. Example: buy a one-bedroom apartment in Sofia for about 40,000 euros and submit it for rent for 250 euros per month. Such investment will generate profits of about 7 % per year. Regarding the factors that must be borne in mind when shopping , of course, first of all - this location . also , it is important to find a company which will manage the apartments . "

Sergei Natalenko : " Yield Bulgarian real estate with lease a maximum of 7-9% per annum. Bulgaria rental market is not very developed. If we talk about a little less profit, but stable, it is necessary to consider the city of Burgas and Varna and Sofia. Russians and Ukrainians also tend to buy property for himself, living in her two-two and a half months of the year. rent the property in Bulgaria Russians unpopular. Choosing accommodation for rent in the resort town , it is necessary , first of all , pay attention that offers itself residential complex. This is very important for a potential tenant ... Management companies that are engaged in renting apartments are just beginning to enter the market . Their services are 20-25 % of the profit. "

Alexander Zvezdanov : " As the holiday season in Bulgaria lasts only three to four months, for rental properties in the resort towns of Bulgaria will not earn much . In the big cities , you can take shelter year-round students and workers. But there is one universal principle - to rent out property , when the rent is at least 1% of the property value . we in Bulgaria this figure is less than 1%. Therefore rent housing in our country unprofitable . "


Bulgarian Property was not interesting to foreign investors , and is unlikely to be interested in the near future . Act as decisively as the English fifteen years ago we can not , and most forecasts do not promise significant growth in prices. So that net investment is unlikely to be the cause for many purchases.

Definite prospect opens consistently high interest in the Bulgarian real estate Russians. We can say that our compatriots to some extent determine the standards of the local real estate as it did before the British. For example, some apartment complexes on the Bulgarian resorts are built and finished to meet the requirements of customers is Russian . This allows you to rely on the resale of the purchased apartment after a while his compatriot , who may overpay .

The truth - and this is also confirmed by Realtors - Russian clients in recent years have become more demanding and scrupulous . So , Bulgaria, in the coming years , will certainly maintain the leadership of the countries where the Russians are buying homes . But the reason for this will be all the same sun and sea at an affordable price .


Content tags: Overseas property
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