"Bulgaria is not abroad" — it is the conventional wisdom, which is close to the truth. Here, you feel yourself as in Russia. Similar mentality and language, warm and familiar Black Sea, Slavic Relations. It's a pleasure to be here, spending relatively little money or buy your own house for the summer holidays. The Russians demand real estate in Bulgaria because of the low price compared to other resort European countries: Croatia, Spain, Portugal, Turkey.
ee24.com decided to find out what and where are Russians buying in Bulgaria, why pensioners come here for permanent residence, what are the advantages of a residence permit and why you can do without it. These and other questions are answered by Julia Sayfetdinova, director of real estate agency "Sweet Home".
The main risks are associated with low-cost housing
- It is believed that the most active players on the Bulgarian real estate market are the English and Russian ones. Is this true? In our days, the British often get rid of the housing...
- The main buyers are the British, Irish, Belarussians, Ukrainians, Russians. There are clients from Kazakhstan. The British have become less interested in real estate in Bulgaria after the crisis and the introduction of a tax on luxury, so now they are selling rather than buying. In general, the house by the sea in Bulgaria is one of the cheapest in Europe. According to the level of prices closest to Bulgaria are Montenegro, the Turkish part of Cyprus (but there is harsh economic situation), and partly Spain.
- Bulgarian Property is associated with the words "cheap" and "available". And what about the quality?
- On the secondary market you can find different objects. There is a minimum threshold to guarantee normal conditions. For example, the studio by the sea on the south coast can be bought for €20-25 million - a decent option. If it is lower, you should be in doubt, either it is a closet or commercial property that is sold as residential or a mortgage home, or the location is not very convenient (somewhere in the field), or it is in need of repair. There are many nuances.
- What are the risks of buying property in Bulgaria?
- All of the major risks are associated with low-cost housing, but there may be a delay with the objects with the average prices: for example, a house can be put into operation six months later because of a major real estate developer who has a lot of objects. It is important to look at the status of the object and price. If it is below €25,000, the quality may suffer. Holiday homes that are built with drywall with appropriate insulation and thermal insulation in winter are not suitable for life, and the neighbors will not be around at this time.
If we talk about construction sites, then there are lots of developers: large, as in Russia, are generally more reliable, and there are co-investors, mortgage builders. There are some difficulties with housing under construction. The agency should tell the buyer of all the risks. If the dwelling is under construction, the client needs to know that there is no paved road, for example, and so on.
A comfortable life in retirement for 15,000 rubles
- What is the portrait of the Russian buyer of real estate in Bulgaria?
- There are roughly two or three categories. The first are those who are looking for something comfortable for families (including subsequent lease) and are interested in the resort real estate. These are couples over 35 years, usually with children. These people can easily afford to buy something.
The second category are older people, 45+, approaching retirement age who are looking for accommodation for permanent residence; they are looking for a good environment for retirees. Bulgaria's policy is that the retirement age is the basis for obtaining a residence permit. For this we need to confirm that you have a place to live and can afford living (in the bank in Bulgaria there must be a minimum of about €837). Russian pension of 15 000 would be enough for a normal life in Bulgaria .
Also, there are those who want a lot and very cheap. This category is also among the first, and among the second.
- What are other issues in addition to pensions, that Russian buyers care about?
- Most popular question is where to live, how much will property maintenance cost, taxes, residence permit, permanent residence, where you can work, legal aspects. In general, people do not adapt to the market and are considering options for €17-18 thousand in Sunny Beach for permanent residence, although they are not suitable in winter. There is confusion about the city and resort real estate. Russians are used to that the price includes everything: decoration, furniture. This is true when it comes to holiday homes. However, urban property is rarely sold with appliances and furniture, basically, it's just a rough wall. Another myth that need to be dispelled is that buying a home automatically grants a permit.
- However, Bulgaria, as some other European countries, has a law on the so-called "golden visa" - a residence permit in exchange for the investment. Minimum bracket (€300,000) is not too exaggerated?
- Yes, for so much money in Bulgaria, you can buy a nice property, but for the average buyer this is of course a big amount. But here it is important to know that you can get a residence permit in exchange for investments, buying not one, but several objects. But there are some other reasons for obtaining a residence permit. For example, a Russian legal entity may be registered in Bulgaria as a foreign mission and get a residence permit for 4 people. For Russia, this is an affordable way. Another option is to register a company in Bulgaria and employ 10 Bulgarians.
Many people ask how to get a residence permit in Bulgaria, but do not understand why they need it. This is, first of all, necessary for those who intend to live in this country most of the time in the future to get a long-term resident status in Bulgaria. If you are here on short visits, it will be problematic in the future to get the status of DWA, even with a residence permit. RP is associated with moving to another country. It is not easy to sell everything and move to Bulgaria, this is a crucial moment, it is necessary to collect a large set of documents and wait for a while... Only one type D visa shall be issued only within 45 days.
And without a permit the owners of properties in Bulgaria have advantages. They get multiple entry for 1-2 years with the right of multiple entry and the right of living in Bulgaria for 3 months and a half. Visa for the property is made quickly and easily.
I note that Bulgaria is not yet part of the Schengen area, so it is still quite easy to get a residence permit. But the procedure is complicated, since the entry into the Schengen area and the eurozone is projected. The legal system is in a state of transition. In addition, the residence permit in Bulgaria entitles the visa in the Schengen countries under the simplified system, and in the future, when becoming a long-term indwelling in Bulgaria, you can get a card for a long-term indwelling in the EU. In this case, everything is simplified as possible.
Resort Properties are losing ground to the urban one
- What property Russians usually buy in Bulgaria?
- More often - apartments and homes for permanent residence. Previously, the resort property was more popular , but now the balance of urban and resort is 50 to 50. Russians want to save money, and have a more balanced approach to the issue. They are more interested in the resort housing in exotic places, have unexpected choices (not Sunny Beach and Golden Sands). There are requests for urban housing in Burgas, Varna, Pomorie, Sozopol, on the private houses in the villages of 10-20 km from the coast, for property in Veliko Tarnovo and Malko Tarnovo, Velingrad areas, Bansko, Sandanski. Sofia is less interesting for Russians, because it is a large city and people want privacy.
- What are the unusual requests you have received?
- In one case, we sold housing to people, and then met with them on vacation. There was another customer who went to the show with seven children of different ages from 2 to 16 years. They came to rest. The broker had a hard time. This large company travelled through Bulgaria in a minibus.
- A School for Russian children will open in Burgas soon. Are there "Russian quarters" in Bulgaria ?
- To be honest, Russians are everywhere. Very often we hear from the developers that property owners on their sites are from Russia. I know that there is a community of Russian owners of real estate in Burgas, as our fellow citizens are going on a certain days in Burgas for communication. Here and in Varna I found a Russian hairdressers and shops with typical Russian products (sour cream, condensed milk, pickles), owned by the citizens of Russia.
- What are the trends of the past year, that you have mentioned on the real estate market in Bulgaria.
- On the one hand, the demand of sophistication is recently observed among buyers, the attraction to the traditional styles (Classicism, Baroque, Rococo). Developers, especially in the resort real estate market, are increasingly lure the Russian buyers by using columns, wrought-iron railings, openwork molding in architectural projects. There is also interest in traditional Greek and Italian architecture, in general, everything that creates a special atmosphere of the sublime. On the other hand, we have an increasing number of completely absurd requests, when people want to buy a property worth less than €15,000 with a sea view (preferably on the 1st line), for permanent residence, but in a resort area with a fine finish, furniture and the possibility of obtaining long-term installment payment. But this does not happen.
I can say that Bulgaria is a country not for everyone, it differs from other EU countries: the roads are good, but homes in the outback and the atmosphere is very similar to Russian. Bulgaria is not abroad - it's true, here you do not feel yourself sa a guest, in which there are pros and cons; somewhere it's dirty, there are no highways across the country, but the atmosphere is homely. If you are going away to Bulgaria for permanent residence, it is easier to assimilate. But there are also disadvantages: the social level, wages are lower than in Europe. In Italy, France and Germany on the contrary, you feel like a foreigner, you do not feel like at home.
Fact. In September 2013, Bulgaria recorded an increase in house prices for the first time in 4 years. According to the Bulgarian National Register, this summer went up certain types of housing in the cities of Sofia, Plovdiv, Stara Zagora, Blagoevgrad and Sofia, as well as in a number of coastal regions. Average house prices rose by 1% in comparison with 2009. Also, there is an increase in rental rates by 17%. The average price of suburban real estate by region during the second half of the year: Burgas - €29,280; Varna and Dobrich - €19,560; Plovdiv - €10,930; Stara Zagora - €13,240; Veliko Tarnovo - €12,250; Pleven - € 2,500.
Text: Paul Kuznetsov, ee24.com