The Bulgarian Property Market
Recent data and forecasts recently about the Bulgarian property market are indicating that supply is exceeding demand especially in the Black Sea area.
A report recently published in the Bulgarian daily Monitor quoted Mihail Chobanov of Bulgarian Properties as saying that lower-segment properties might see price decreases, especially Black Sea holiday homes, which already had slipped to 500 or 600 euro a m2.
Bulgaria until recently was the fastest growing investment property location in the Balkans. With its stunning countryside, ski resorts, Black Coast beaches and the Sofia City Centre buy to let real estate market, Bulgaria can still offer outstanding property investment returns.
Major improvements in infrastructure to cater for increasing tourism in Bulgaria is paramount in providing the backdrop for a stable buy-to-let property investment market.
Investment property in Bulgaria was one of the first emerging property markets of Eastern Europe. The recent boom in Bulgarian property consists mainly of new off plan property developments in both the ski & golf resorts around Bansko and other seaside resorts along the Black Sea Coast.
However, the credit crunch and the global slowdown real estate investment is currently affecting the Bulgarian residential property market. Bulgarian property prices are treading water and holiday homes are the riskiest segment at present.
Supply is exceeding demand and unfavourable credit terms and overpriced offers are among the factors responsible for the stagnant property market in Bulgaria.
Even though the overall global market is slowing, Bulgaria topped the second quarter index with a 32.2 percent price increase from a year earlier. Prices in Bulgaria have jumped 68 percent in the last two years, although there are fears of oversupply, particularly in the resort locations along the Black Sea.
Although the Bulgarian holiday homes segment has been on the back foot, interest is slowly picking up again. But the performance of the market very much depends on location.
A Popular Holiday Destination
Bulgaria has already for years been a popular holiday destination. Over recent years the World Bank funding has facilitated the provision of much needed key infrastructures, including tourist facilities. This, along with the newly acquired EU membership, has created great confidence with international property investors.
The World Tourism Organisation (UNWTO) describes Bulgaria as one of the most appealing ‘new faces’ in the tourism industry today.
The WTO also makes bold predictions for tourism figures, predicting in excess of 20 million tourists annually visiting Bulgaria by 2010, making it one of the world’s greatest emerging markets. This has obvious positive repercussions for the investment market.
Bulgaria Property Hotspots:
Apartments in the ski resorts of Blagoevgrad close to ski lifts are still selling well. Properties on the Black Sea Coast have recently become less popular with property investors due to insufficient infrastructure and over development.
In Sofia, the capital city and home to the majority of Bulgaria's 200,000 millionaires, property prices rose 35.21% in 2007. Without any doubt the the strongest property investment potential in Bulgaria lays in Sofia.
Bulgaria offers a variety of property locations. The main interest to buy property is along the Black Sea coast, preferably close to the beach.
The most popular areas to buy property in Bulgaria are Varna, Sunny Beach, Burgas, Bansko, Pamporovo, Borovetz, Sofia and Veliko Tarnovo.
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