The Market Of Holiday Apartments

Thousands of holiday apartments wait for their new owners.
The market is abundant in offers as the traditional buyers from the UK backed off after the mortgage crisis in the Kingdom.
At present real estate prices remain stable. The average percent of properties sold in holiday complexes on the Black Sea coast and the mountain resorts has retained its level. However, an increased supply by some 43% to 76,500 units has made the number of the unsold properties on the market grow with the same rate. For new build they account for about half of all, as for completed they are about 25% totaling thousands apartments and villas in different locations - from Ahtopol to Shabla and from Sunny Beach to Bansko.
The prices per sq m vary from EUR 800 to EUR 3000 per sq m depending on final state,quality,location and additional facilities

Developers are still very active and according to the national statistics office resorts will continue to be the main battlefield for the construction companies. The number of building permits issued for this year come to about 25,000 units. This is about three and a half times more than in Sofia and about 43% of the residential projects all over the country.
The places with luxury residences are more clearly outlined. They can be grouped in two types according to the specific types of property - in the centers of the most developed resorts or in club type complex outside urban areas.
Currently, higher prices are found in renowned complexes. Already overbuilt, there are fewer opportunities for new projects and only selected real estate have the advantage to directly face the beach or the lift or to have a view to the newest marina in Bulgaria or the ski runs over Bansko. Their prices usually exceed EUR 2,000 per sq m and one of the reasons for that is that they are completed and usually unique.

In Golden Sands centre in a new residential building apartments are for sale for EUR 3,000 per sq m. According to the advertisement, they stand some 10 m away from the sea. The building will offer hotel services, including reception, room service and a casino. The standard prices in the area start from EUR 1,000 per sq m and do not exceed EUR 1,700. But supply in the same resort is scarce.
Relatively lower prices are found in club resorts on the Black Sea coast and in Pirin zone. Their sales levels vary from EUR 1,350 and rarely exceed EUR 2,000 per sq m. Unlike the already built complexes in places like St. Vlas and Sunny Beach developers still have a number of opportunities to offer new apartments.

One of the expensive residences in Bansko is worth about EUR 740,000, or almost EUR 2,500 per sq m for a two-level apartment of 296 sq m in a complex with a restaurant, a spa centre, a swimming pool, a conference hall, a night club and other facilties. One of the extras is the furnishing.

If you are a foreigner interested in buying apartment in Bulgaria there are a few things that you have to pay attention to:

To buy an apartment in Bulgaria , you don’t need to register a Ltd company as this is valid only when you are buying land or a house. For the apartments you are actually buying the right to build (not the land) that’s why company formation is not required. You still get a Bulstat card and bulstat number issued for the purpose.This is how the Bulgarian Tax Services recognize you as a property owner.

Once you have chosen the apartment that you like, the standard way to reserve it is by paying 1000 EUR to 2000 EUR reservation fee which takes the property off the market. The reservation fee is not refundable, but is deductible from the first payment.

Once the apartment has been reserved, your passport details and home address is required so that a preliminary contract can be made. In this contract is described everything regarding your purchase – apartment number and price, dates of installments and also penalties – for you, if you are late with the payment or for the developer if there is a delay with the building process.

Usually 1 month after the reservation you will need to transfer the first payment for the apartment into the developer’s bank account.

Once the building is completed (if you are buying off-plan) and all the payments are made, the property will be transferred to your name.

After the deal you will need to register the property in the Local Tax department so that you are registered as the new legal owner. Also according to the Bulgarian Law you will need to register in the Bulgarian Statistics Institute (BULSTAT) and take a BULSTAT card. You need to do this within 7 days after the purchase.

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The Market Of Holiday Apartments