Oil prices stabilized, as well as the situation on the currency markets of Russia and CIS. Considering the current market realities, becomes more urgent question of what to do with their savings in 2020? Whether foreign real estate is a profitable alternative to storing savings in currency.
Based on the analysis of preferences of Russians, Bulgaria has for several years been a leader in overseas property investment. However, due to the realities and challenges of 2020, you may wonder: "Should I now buy a property in Bulgaria?". Let's find out.
Handle prices: is it profitable to buy property in Bulgaria to 2019
How prices will behave in the short and long term? Do you expect sharp decline in prices on the background of coronavirus crisis? This is perhaps one of the most important issues of interest to buyers of foreign ownership and foreign investors. Before proceeding to analyze the situation in 2020, let us consider the dynamics of real estate prices over the last 10 years. This will help you see the prevailing trends and more precisely to predict the direction of price trend.
The real estate market in Bulgaria since the early 2000s, has passed three stages of development: rapid growth, recession and recovery.
- The first phase covers the period from 2000 to 2007, under pressure from growing demand, prices soared. In late 2007 – early 2008 the price bracket the national average peaked – 725,17 € per square meter. On the black sea resorts the prices were even higher.
- Amid the global economic crisis, the market began to stagnate, and then a sharp decline, the consequences of which are still felt today. At this stage, from 2008 to 2013, the cost per square meter fell on average by 40% to 442 €.
- Despite the collapse, the rate of decline in prices decreased every year. So, in 2014, the average cost per square meter increased slightly for the first time since the crisis began. Past 2015 and 2016, were also closed with positive value changes, which indicates the transition of the real estate sector in the stage of stabilization.
Following 2017 and 2018 were recognized as the most successful for the Bulgarian market in the post-crisis period. The average annual growth of prices in the country amounted to 8% in major cities of Bulgaria 10-13%.
To follow trends in the housing market in Bulgaria you can in the article:
- "Overview of real estate market in Bulgaria in 2016-2017"
- "The dynamics of real estate prices in 2018."
Forecast of real estate prices in Bulgaria on the 2020-2021 year
During the active spread of the coronavirus, from March to June, the activity on the Bulgarian real estate market has decreased almost to zero. During this period it was possible to find sufficient�� proposals for the sale of housing at a discount of up to 20%, as well as interesting offers from developers in installments. In General, the impact of the crisis property prices fell by 3%.
However, immediately after lifting restrictions the market revived, many thanks to the activity of the Bulgarian buyers. In June and July, the demand has recovered 90%, prices have stabilized and even begun to grow up a bit.
According to experts, in 2020 the price bracket will not grow, but also a serious decline in prices cannot be expected.
Positive dynamics of the key market indicators gives us confidence in the future recovery of the housing sector in 2021. Among the positive factors:
- attractive mortgage rates and Bank deposits,
- increased internal and external demand for housing,
- activation of the construction sector and the increase in the number of projects under construction.
Therefore, if you are planning to buy property in Bulgaria, now is the time to do it.
See also:
Earn on rent
If you are considering the Bulgarian direction only from the investment point of view, then focus on the choice of commercial and residential properties in major cities of the country. However, keep in mind that you will not be able to make enormous profits that were possible in the mid 2000-ies. Today the yield of Bulgarian property in the resort areas does not exceed 4-6%, and in cities – 7%. Moreover, the cost of maintaining and mediation services of the management company often negate the rental income of the owner.
- Read the article: "How to choose a property in Bulgaria?"
If the main purpose of the acquisition of apartments – travel, and renting it only during your absence, then it is important the correct choice of the object with high liquidity. In the choice of such property with the help of our managers.
Weigh the pros and cons
In addition to price component, the adoption of informed decisions about the purchase of Bulgarian property is affected by a number of factors. This degree of infrastructure development, and not just a resort, the maintenance costs of real estate and taxes, visa and legal restrictions, etc. for Example, one of the hidden issues for buyers of private homes and villas, is a legislative ban on the purchase of land in Bulgaria.
A serious approach to analyzing all the advantages and disadvantages of Bulgarian directions will help you make the right decision and not regret about the made choice.
Read the article: �nye the stones of buying property in Bulgaria" href="/nedvijimost_plyusyi_i_minusyi/">"the Pros, cons, and pitfalls of the real estate in Bulgaria".
