The challenging 2020 coronavirus year is behind us. In 2021, vaccination against coronavirus began, the number of active cases decreased, against the background of which many countries began to lift restrictions and open borders. From May 1, Bulgaria also allows entry to citizens of most European countries, including Russia, Belarus, Ukraine. Now many will be able to finally carry out the deferred transactions for the purchase and sale of housing.
How will the situation this year affect the prices for Bulgarian real estate? Will demand increase? Should we expect a decrease in the cost per square meter, or the price trend will follow an upward trajectory. About this and much more - in the next review of the real estate market in Bulgaria in 2021, prepared by the company «BolgarskiyDom.com».
Market trends and forecasts
- Due to the spring lockdown, some experts predicted a decline in property values at the end of 2020. However, despite the complete freeze of the market in the spring, the housing sector ended the year positively with growth in demand and prices. In 2021, Bulgarian housing prices continue to rise.
- It is noteworthy that in 2021 prices for resort real estate on the sea began to grow. Firstly, this is due to the unprecedented activity of Europeans and Bulgarians, who are looking for profitable directions for investment. Secondly, with a limited supply of quality options for resort housing, which allows the sale of properties at a higher price.
- Against the backdrop of the pandemic, the demand and the cost of apartments with a terrace, as well as private houses in gated complexes, with a local area in picturesque regions of Bulgaria near the sea, increased. Apparently, last year's tough quarantine prompted many Bulgarians to think about a second home closer to nature.
- The number of distance transactions with the participation of European citizens, buyers from Russia, Ukraine, Belarus has increased. Moreover, the Russians not only sell real estate remotely, but also actively buy it.
- If we talk about the prospects, many experts are optimistic and expect a gradual recovery of the urban and resort real estate market in Bulgaria. There are several reasons for optimism: the optimal level of supply and demand, low mortgage rates, expectations of the imminent entry of Bulgaria into the Schengen zone and the transition to the European currency. The latter is especially important for Bulgaria, since in most EU countries, for example Germany, Sweden, France, investments in real estate are encouraged within the limits of the euro currency.
«The Bulgarian real estate market has responded quite well to the coronavirus crisis. The negative impact was mainly observed in the second quarter of 2020, but the housing sector coped with it successfully. In late 2020 - early 2021, we saw an increased activity of Bulgarians and buyers from Western Europe. We expect a surge in activity in the summer and autumn of 2021.»
Housing price dynamics in 2020
According to the consulting company Knight Frank, prices for Bulgarian squares increased by 3.2% in the quarter and by 2.1% in the last six months of 2020.
Reports from the Bulgarian National Statistical Institute (NSI) show that real estate in Bulgaria in 2020 has risen in price by 5.4% in annual terms. The largest growth occurred in the southern resorts of the Burgas region, in the Varna region the cost of housing has not changed, in some segments it has slightly decreased.
| Тип | Change (%) in 2020 in relation to the corresponding quarter of 2019 | |||
|---|---|---|---|---|
|
I |
II |
III |
IV |
|
|
General change |
+4,7% |
+2,9% |
+5,2% |
5,4% |
|
New housing |
+2,0% |
+0,8% |
+3,5% |
+2,3% |
|
Resale property |
+6,3% |
+4,2% |
+6,2% |
+7,2% |
Of the Bulgarian cities, the price for the secondary housing of Burgas in the seaside region of the city increased more (+ 7.9%). The price level in the secondary market in Varna is stable (+ 1.5%).
Property prices in Bulgaria in 2021
At the beginning of 2021, you can purchase a studio, house or apartment in seaside resorts at the following prices (the table shows the minimum cost of a residential property).
| Housing type / region (number of objects) | Apartments | New property | Resale property | Houses |
|---|---|---|---|---|
| Sunny Beach (2730) |
7800 € |
8 500 € |
7 800 € |
93 000 € |
| Saint Vlas (1552) |
11 650 € |
23 600 € |
11 650 € |
99 000 € |
| Elenite (153) |
16 500 € |
34 400 € |
16 500 € |
133 000 € |
| Nessebar (310) |
18 900 € |
20 000 € |
18 900 € |
66 000 € |
| Ravda (394) |
20 000 € |
26 100 € |
20 000 € |
70 000 € |
| Pomorie (260) |
18 900 € |
19 000 € |
22 000 € |
38 000 € |
| Sarafovo (165) |
23 350 € |
23 350 € |
23 900 € |
100 000 € |
| Burgas (160) |
26 370 € |
28 250 € |
27 800 € |
50 990 € |
| Sozopol (201) |
21 700 € |
21 700 € |
26 500 € |
144 000 € |
| Varna (110) |
37 000 € |
37 000 € |
35 500 € |
50 000 € |
«In May we are waiting for the arrival of clients from Russia, the CIS, Israel, Western Europe. Many of them have booked apartments in Bulgaria and plan to personally attend the execution of transactions.»