by Admin
Do I need to buy property in Bulgaria now?
In 2022, our lives will change dramatically! The pandemic caused by Covid19, with all the quarantine measures, the closure of borders, the cessation of air traffic, hit the real estate market very hard. The next, more powerful blow was the war in Ukraine. Accordingly, all this led to a new economic crisis and people’s distrust of the banking system as a whole. In view of modern market realities, the question of what to do with your savings in 2023 becomes more and more relevant? Is overseas property a profitable alternative to keeping savings in foreign currency?
Based on the analysis of European preferences, Bulgaria has been a leader in foreign property investment for several years in a row. However, due to the realities and challenges of 2022, you may be wondering: “Is it worth buying property in Bulgaria now?”. Let’s find out.
We get acquainted with the prices: is it profitable to buy property in Bulgaria in 2022
Will there be changes in prices in the short and long term? Should we expect a sharp decline in prices amid the coronavirus crisis? This is perhaps one of the most important issues of interest to foreign property buyers and foreign investors. Before moving on to analyzing the situation in 2021, let’s look at real estate pricing over the past 10 years.
The real estate market in Bulgaria since the early 2000s has gone through three stages of development: rapid growth, decline and rise.
- Stage No. 1 covers the period from 2000 to 2007, when, under the pressure of growing demand, prices began to rise rapidly. At the end of 2007 – beginning of 2008, the prices on average in the country reached a peak level – 725.17 € per sq. m. meter. At the Black Sea resorts, prices were even higher.
- Against the backdrop of the global economic crisis, the market began to stagnate, and then a sharp decline, the consequences of which are felt today. At this stage, from 2008 to 2013, the cost per square meter fell by an average of 40% to 442 €.
- Despite the collapse, the rate of price decline has been decreasing every year. So, in 2014, the average cost per square meter increased slightly, for the first time since the beginning of the crisis. The past years 2015 and 2016 were also closed with a positive change in value, which indicates the transition of the real estate sector to the stage of stabilization.
The next 2017 and 2018 were recognized as the most successful for the Bulgarian market in the post-crisis period. The average annual increase in prices in the country amounted to 8%, in large cities of Bulgaria 10-13%.
In 2019, the growth rate of the cost of Bulgarian square meters decreased to 5% in annual terms. At the beginning of 2020, the market stabilized and a slight price increase partially began.
In 2020-2021, the real estate market was actually “bound” by covid restrictions.
At the end of 2021 – beginning of 2022, the Bulgarian real estate market was activated and property prices skyrocketed, on average, by 35-40%!
Property Price Forecast in Bulgaria for 2023
According to experts’ forecasts, in the first half of 2023 the price level will not grow significantly, but you should not expect a price drop either.
As for the second half of 2023, experts expect an increase in demand and an increase in property prices.
The positive dynamics of key market indicators gives confidence in the further recovery of the housing sector in 2023.
In 2024, it is expected that Bulgaria should switch to the Euro currency from January 01, 2024, which will lead to a jump in property prices from 10 to 20%!
Among the positive factors:
• attractive rates on mortgage loans and bank deposits,
• increase in domestic and foreign demand for housing,
• activation of the construction sector and growth in the number of objects under construction.
With that said, if you are planning to buy a property in Bulgaria, now is the time to do it!
Real estate rental income
If you are considering the Bulgarian destination only from an investment point of view, then focus on choosing commercial and residential real estate in the resorts of Bulgaria.
If the main purpose of acquiring an apartment is tourism, and leasing is planned only during your absence, then the right choice of an object with high liquidity is important. The Alliance Estate Real Estate Agency will help you in choosing such a property.
Weigh the pros and cons
In addition to the price component, a number of factors influence the adoption of an informed decision on the purchase of Bulgarian property. This is the degree of infrastructure development, and not only the resort, real estate maintenance costs and taxes, visa and legal restrictions, etc. A serious approach to analyzing all the advantages and disadvantages of the Bulgarian destination will help you make the right decision and not regret your choice. We are ready to provide you with our assistance in this matter.
