Until recently the Russians were happy to invest in Bulgarian property, but this year, as it is evidenced by the experts, the number of these transactions has declined by 30%, says ee24.com citing the "Trud" newspaper.
Bulgarian realtors indicate that the Russians didn’t just acquire less property in Varna, in the area of Sunny Beach, Bourgas and at the North Shore as well, but even more they try to get rid of previously purchased apartments and villas. In fairness it must be said that such attempts generally do not lead to the desired result, as the Russians owning Bulgarian property want to sell it for the same price at which it had been purchased and do not realize that it is no longer possible.
These processes have begun in mid-spring of 2014, when the EU began to frighten Russia with sanctions. At the same time, many brokers have stated that it was a temporary phenomenon that would take place only until the crisis between the Russian Federation and Ukraine would not be resolved. However, in the height of summer, it became clear that things are not so simple, as there are many factors influencing the behavior of Russian buyers. Most of experts agree that the crisis in Ukraine itself can not be considered as the main reason. But at the same time the situation in this country led to dramatic ruble devaluation and ruined financial opportunities of potential Russian buyers they had in the beginning of this year.
Sharp decline in the number of tourists from Russia is another important reason, as generally real estate in Bulgaria was purchased by the Russians who having come to this country once, decided to buy cottage, villa or apartment intending to move there for residence.
Of course, it is still very early to talk about the complete lack of demand for real estate. However, it can be argued that there is a reorientation of Russian buyers towards small area apartments (less than 50 sq. m.) in the low-price segment (€30,000-40,000), as believe Bulgarian media and in particular NewsBG.ru. But interest in buying real estate in big cities in Bulgaria has completely evaporated. Representatives of the Bulgarian real estate agencies claim that there is high risk that the Russians will reorient for renting out apartments in Bulgaria, as due to the construction of the "South Stream" and the increase of "Lukoil Bulgaria" capacities, many specialists from Russia are supposed to come there.
Text: Sergey Filatov, especially for ee24.com