For the first time in last five years, Bulgarian realtors are looking forward with optimism, waiting for the final recovery of the market, growth of buyers' activity and sales. Some even predict a property price increase and a shortage of liquid homes and building plots in 2014.
Forecasts are likely to begin to come true from the end of the list
The idea of an impending shortage in the Bulgarian property market may seem weird if we look at dozens and thousands of projects along the coast that have been completed during the crisis years. Apartments in many residential developments on the coast were not sold out yet.
Experienced buyers do not tend to buy apartments in the early stages of construction, and there is no such a need. Today Bulgaria is a market of completed apartments in new homes as well as on secondary market. Asked prices of completed apartments are generally the same as for flats sold at the stage of excavation. Given that the purchase of an apartment in a building under construction carries hidden risks, the choice is obvious.

However, over the last couple of years there was a very noticeable increase in the number of new projects around Varna and Burgas, in Sarafovo, Byala, Chernomorets, St. Vlas, Sozopol. Each year new buildings are rising in the former wastelands between existing residential developments. The construction of the block of flats in Bulgaria takes only a year and a half.
Therefore, developers have already started to feel the lack of good coastal plots for new construction. All the best lands were developed in the period of the pre-crisis boom. Also notice that in last several years we have a ban on issuing of building permits in the 100-meter zone from the coast. That's why in the last two years, with the resumption of active construction of coastal housing, developers try to repurchase lands with the applicable building permits.

Five-Year Calendar
The last 10 years the Bulgarian market develops cyclically: 5 years of growth and 5 years of decline. About a year is needed to change the trend. Obviously, it was a year 2013, and now market participants are rubbing their hands in anticipation of a new long and positive stage.
Russian buyers are the most active on the Bulgarian property market in recent years. This explains why many experts are optimistic about perspectives for real estate market at a time of the general economic downturn and the unstable political situation in the country.
This means that the situation depends on the purchasing power of Russians rather than the economic and political processes in Europe. In case the Russians continue to buy with the same intensity, then, as a consequence, the resale of holiday apartments on the secondary market of Bulgaria will be accelerated.

Currently, most private owners willing to sell something available without loss in price (often with a view to buy a more spacious housing or housing in other location) are waiting for a buyer a year or more. The reason is the oversupply of proposals in the middle price segment.
And finally, if a positive trend lasts at least a year or two, then the demand for unfinished projects will be rise again. And if so, then inevitably we'll see the price gap between similar properties on the secondary and primary markets.
However, today market is inert. Therefore, the worst thing that may happen with a potential buyer, is that during next months prices for apartments in Bulgaria may slightly go up, and desired property for the desired price may dissapear from the market.

Realtors speak
"We predict that the real estate market recovery will continue in 2014, and it will be reflected in a further increase in sales of residential and resort real estate across the country. Luxury real estate in Bulgaria, located at prestigious resorts, as well as in Sofia and other major cities (Varna, Bourgas and Plovdiv) will be the bestseller in 2014. These expectations are based on a rising interest in this type of real estate in 2013," said Polina Stoykova, executive director of Bulgarian Properties.
Goryan Varbanov, partner of the Bulgarian company New Estate, notes the increase of interest in costal properties. "But if in 2011, right after the crisis, people were buying cheap apartments of €16-25 thousand, now the main demand has shifted to apartments priced at €35-45 thousand. So, I think buyers will continue to move towards a higher price segment," said the expert.

Maria Laleva, owner of a small real estate agency in Burgas, expects growth of Russians' interest not only in apartments on resorts and in cities, but also in cheap rural houses in the Bulgarian countryside. "This market segment was totally out of demand, and it was even uknown for most of realtors before the crisis. And now almost every month, even in the fall, even in the off-season, people go to watch rural houses in 25-60 kilometers from the coast. Number of requests grows like a snowball. I even had to hire two assistants. Some villages around Burgas have become very known among Russian buyers," said Maria.
Oksana Chizhdenko-Nikolova, general manager of Alfasiti, expects growth of invest in commercial real estate in Bulgaria: "Hotels will be one of the most attractive market for investors. In 2013 a few large transactions for the purchase of hotels were committed. Mini-hotels are becoming popular, and prices range from €150 thousand to €300 thousand. You get operating business for this money. Interest of Russians to property in Bulgaria in 2014 will be intensified because Bulgarian banks lighten mortgage terms for Russian citizens. In 2013, the number of real estate transactions in Bulgaria has reached the value of 350,000 operations. I think next year there will be more transactions."
Text: Julia Lozovskaya, specially for ee24.com