The market for luxury properties in Bulgaria over the past two years has been characterized by stability and lack of dynamic.
The market has reached a steady state and its players are ready for the new conditions, valid for Bulgaria and Europe.
The thinking of the Bulgarian buyers of properties has developed positively in the recent years. We can say that there are 7-8 years during which this segment has developed. Before, buyers were not aware of the real value and the quality of a luxury property.
Over the past two years, however, buyers are well aware of market trends, with features that a luxury property must possess, with the potential of growth and the options for revenue. In this regard we have reached a good level.
With the changes in the banking market and the record level of deposits we observe that levels of domestic interest rates continue to fall this year and has reached pre-crisis levels. Deposits do not bear this higher yield than in the first two years of the crisis.
There is an increasing interest during the recent months in acquiring property and renting it. The yield of these properties is good against the whole situation in our country. This is an excellent alternative to the continually declining profitability of deposits. However, the market for luxury property has a good stability in rents in recent years.
The tax rate will affect savers with higher financial resources. An alternative to these savers is the investment in real estate in a good location in a large city in Bulgaria. Low mortgage rates will increase purchases of high-class properties in the country.
Recent years towards strong sales and rentals of foreign customers is observed. Especially from the Russian customers. Bulgarian buyers mostly turn towards Sofia and Varna. Particular interest is observed in Burgas and Plovdiv.
The formation of "neighborhood of the rich", unfortunately, did not happen. There are certain locations, but they still suffer from lack of good infrastructure, roads and habitat. Such neighborhoods are clear - close to natural beauty, fresh air, tranquility, no traffic. In Sofia they are- Boyana, Simeonovo,Dragalevtsi, Bankya.
For international clients top destinations are coastal cities and some resorts. Increased interest from Russian buyers is observed in small towns and resorts around Varna. There is a great interest in resorts around Burgas. Pomorie is shaped like a big magnet for Russian customers. Also the small town of Chernomorets, which is very close to Bourgas.
For this type of customer is important closeness of the town center with all amenities for shopping, medical services, entertainment and more.