A revival has been seen since last year in the holiday property market as well, when compared to 2015, the growth of purchases is three times, according to data from real estate experts.
The buyers are like the Russians who were in a standstill position in 2015 because of the depreciation of the ruble and the Bulgarians. The latter is responsible for about 30-40% of the deals with apartments by sea, show the data of this company.
As for the data of the agencies, the interest of the foreigners in the purchase of investment properties in Bulgaria has doubled at the end of 2016 and continues to grow in the first half of 2017.
According to the experts, the reason for the interest of the Bulgarians in an apartment at the sea is now that the people who have the free money can buy a bigger property, completely finished in the holiday villages compared to the market opportunities in Sofia . They give an example that if a quality apartment in Sofia needs at least 60-65 thousand euros, a similar holiday will be paid 35-45 thousand euro depending on the location, completed turnkey.
According to agency data, 90% of the inquiries received since the beginning of the season are for low budget properties - up to 30,000 euros and mainly for one-bedroom apartments, which are mostly available on the secondary market.
That's why Bulgarians are willing to invest in offshore sites to rent, and by buying off plan, they get even lower prices. Some of the deals are for resale, but many people already have the opportunity to really have their own home at sea. According to the company's data, most of the deals with such dwellings are paid with available money, not credit.
And here, as in the dwellings in the cities, are already looking for quality properties.
Unlike urban dwelling builders, those of holiday homes rely on the sale of mainly agencies, although they are not the exception for direct purchases by the investor, mainly by people who have already rented apartments in their buildings and liked them. If the complex is known on the market, it has been functioning for more than five years, becoming more recognizable and making it easier to sell directly.
Companies are looking to build holiday homes in areas that are not overbuilt because customers coming from overcrowded cities are looking for calm and escape from the big city noise.
For the revival of the holiday property market, according to experts, contribute low interest rates on deposits. At the same time, the interest of foreigners in the purchase of investment properties in Bulgaria has doubled since the end of 2016 and continues to grow in the first half of 2017.
Many construction companies guarantee income of 6-7% (some up to 10%) for 2-3 years. After this period, investors offer property management by promising to receive the same or higher rate of return, depending on the terms of the contract. Some external companies offer property management for a percentage of returns.
Investors in holiday homes often offer time management that will not be used by the owners.
According to agency forecasts, the supply of holiday properties will continue to be higher than demand, with a traditionally leading home market. Because of the ongoing economic crisis in Russia and the EU sanctions imposed, Russian tourists will not be the main driver of the holiday property market in 2017. It will move from other foreign tourists, and increasingly from Bulgarians.