It seems that the real estate market in Bulgaria is doing well. Agents report an increased number of transactions by 20% this summer compared with the same period in 2012. The highest demand is observed in the real estate market in the southern part of Sofia and at the foot of the Vitosha mountain. Demand has intensified with the start of the tourist season, reports ee24.com with reference to the Bulgarian media.
This is confirmed by the report of the Bank of Bulgaria, which noted an increase in the number of real estate transactions to 29,641 in the first half of 2013. For the first 6 months of 2013 was committed 109,636 transactions compared to 79,995 transactions in the same period of 2012.
According to the property register of Bulgaria, the number of transactions in the Bulgarian real estate from January to June increased by 11% compared with the same period last year (there were 99,890 transactions). The leader of the rate of growth is Plovdiv with almost 6,000 transactions, up 22% over last year. It is followed by Varna with 12% growth, Burgas with 10% and Sofia with 9.7%.
The number of transactions involving mortgage loans is reducing. Bulgarians are less trusting the banks and are increasingly paying in cash. In May 2013 the bank accounts of Bulgarians fell by 12.4 million leva (€6.4 million), compared with April. This is the first decline since September 2010, which reflects the frustration of the Bulgarians in the financial sector against the background of falling interest rates.
However, the appetite for investment is only growing, and Varna, Burgas, Plovdiv, Stara-Zagora, Blagoevgrad are reaping the benefits of increasing real estate transactions. Foreign buyers also place the emphasis on the Black Sea coast. One-bedroom apartments are most in demand. Prices range from €500 to €1,000 per square meter, depending on the location and value of the object.
Particularly popular resort regions of Bulgaria are located on the Black Sea coast. Construction and housing markets in these regions are developing very rapidly. Thus, in the second quarter of 2013 in Burgas was built 18 times more buildings than in the capital of Bulgaria - Sofia. From April to June 1001 new apartment was commissioned in Burgas, and only 53 in the capital.
It is important to note that in July members of the National Assembly of Bulgaria abolished the taxation of the property, which cadastral value does not exceed BGN 1,680 (€860). This decision was driven by the desire of legislators to restore social justice and make the life of the poorest members of the Bulgarian society easier.
However, Bulgaria is famous not only for its beaches but also the ski slopes. Investors put a great interest in the mountain resort "Pamporovo" and plan to invest €5 million to the project. In preparation for the new season they plan to construct a new lift, install additional lighting, and extend the route.
Experts say that the real estate market in Bulgaria has reached the bottom, and now is pushing up. The holiday season is over, and the coming months will show a special interest in real estate in the mountains, not on the Black Sea.
Text: Ivan Ulitin, ee24.com