How will behave prices for property in Bulgaria in major cities and on the coast? The direction of the market for residential property? Read more about the trends, prospects and current prices read our review of the real estate market in Bulgaria in 2020. (Information updated 24.07.2020).
Trends and forecasts
- Before the epidemic of the coronavirus in the EU, the experts agreed in opinion that the market will be more balanced than in 2019, and the rate of property value growth will slow down. It was predicted that Bulgarian housing by the end of 2020 will rise to a maximum of 4-5%. However, due to the current situation, the forecasts have to be adjusted.
- Obviously, prices in the segment of holiday properties on the sea in 2020 will not grow. On the other hand, now the cost of apartments and houses in major cities in Bulgaria more or less stable, do not decrease the price bracket and at seaside resorts. In General, the market cope with the impact of the pandemic better than expected in some segments even a slight increase in prices.
- Among sellers mostly Russians, who previously actively buying apartments in Bulgaria, now, against the background of currency fluctuations and financial instability trying to return the invested funds.
- Recent months a growing number of requests for apartments and homes from buyers from Germany, Poland, Israel, the Netherlands, the Baltic States, Ukraine. Register requests from the citizens of the United States and Canada.
- Traditionally, about 40% of deals in seaside resorts was carried out by Bulgarians, with a significant number in the mortgage. Bulgarians now quite active, and that probably has to do with available mortgage loans and a desire to have an apartment in a quiet location, away from major cities.
- In 2019, the volume of mortgage loans increased by 4.6% compared to last year. In 2020 the interest on the mortgage is likely to remain at last year level (3-4%).
- Despite the crisis, the former��erty are positive about the prospects of recovery of the residential property. Inspire optimism and the IMF forecast (World Economic Outlook: The Great Lockdown), according to which in the second half of this year the European economy will start to recover and grow in 2021. Of course, assuming that the epidemic will be able to stop and quickly run economic processes. After the recovery, followed by stabilization of the Bulgarian market of new and secondary housing by the sea. A leap in this segment is not expected before the end of the 2021– 2022 beginning of the year, especially if positively resolved the question of the accession of Bulgaria to the Schengen area.
"The country's real estate market has already recovered 90% of the impact of the pandemic".
"Now it is difficult to accurately predict how the market will develop in 2020 and 2021. Everything will depend on how quickly the borders to resume economic activity, will be brought under control the epidemic. We will update the article as clarifying the situation on the market."
Dynamics of prices in 2019
According to the National statistics Institute, property in Bulgaria in 2019 has risen on average by 5% compared to 2018. Price change by quarter can be seen in the table.
| Type of property | Change (%) in 2019 compared to the corresponding quarter of 2018. | |||
|---|---|---|---|---|
|
I |
II |
III |
IV |
|
|
Total change |
+7,3% |
+5% |
+5,4% |
6,2% |
|
New housing |
+11,9% |
+7,5% |
+5.8 percent |
+8.7 percent |
|
Resale |
+5% |
+3,8% |
+5,1% |
+4.9 per cent |
If we consider the regions of the black sea coast, as appears from the statistical reports in Varna region price level rose for all four quarters 2019, and in the Burgas region in the 3rd quarter of the price trend changed direction to the downside.
Property prices in Bulgaria in 2020
According to Raiffeisenbank, in the beginning of 2020 in Burgas the average price per square meter reaches 863 euros, an increase from 2017 to 2019 19.5%. In Varna apartments on average are estimated at 837 euros per square meter.
We offer you to familiarize yourself with the cost of various types of real estate in Bulgaria's seaside resorts (in the table specified minimum price).
| Type of housing / region (number of objects) | Sea apartments | New property | Resale | Houses and townhouses |
|---|---|---|---|---|
| Sunny beach (2200) |
8500 € |
8500 € |
8 900 € |
64 000 € |
| Sveti Vlas (1190) |
15 500 € |
22 000 € |
15 500 € |
75 000 € |
| Elenite (137) |
17 200 € |
21 400 € |
17 200 € |
133 000 € |
| Nessebar (242) |
18 900 € |
20 500 € |
18 900 € |
60 000 € |
| Ravda (300) |
17 300 € |
17 300 € |
18 500 € |
70 000 € |
| Pomorie (190) |
19 900 € |
21 000 € |
19 900 € |
38 000 € |
| Sarafovo (150) |
23 300 € |
23 300 € |
23 900 € |
92 000 € |
| Burgas (140) |
28 250 € |
28 250 € |
38 500 € |
49 990 € |
| Sozopol (175) |
21 400 € |
21 400 € |
26 000 € |
129 000 € |
"In July, the market of resort real estate in Bulgaria, everything comes to life, the resorts are already open for EU citizens who are already actively come to rest and clearance deals. Russians and Belarusians while mostly can conduct remote transactions (except for those who have the status of residence permit, permanent residence). However, compared to the second quarter of 2020, in July, more opportunities to buy new or second hand apartment and place the object to the property."