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Property demand in Varna continues to rise

Demand for property in the last three years has been steadily rising, with a particularly strong year earlier in 2016. Although the first quarter of 2017 shows some weakness according to reports, the six months show sales growth in two of the major cities in the country, and one they are Varna. In Sofia there is a growth of transactions of 4% and in Varna - 3% for the reporting period, compared to the same period last year. The other major cities with few exceptions show declines. Brokers specify that there are also many transactions, which are done off plan and register with the Registry Agency at a later stage, which also plays a role in determining the data, but it is not significant.

The rise in property prices in several cities across the country shows that supply is less than demand, but that is not the case, experts say. If we look deeper into the structure of sales, we will see that there is a very serious supply of old construction and not so much interest. Greater interest is directed at new projects in big cities. Current buyers have higher requirements, and investors, in keeping with these requirements, create their projects and buildings much better than materials, design and functionality. For this reason, demand for new construction is greater than supply.

It turns out that the most commonly bought properties are those with one and two bedrooms, with one-bedroom dwellings being sought primarily by young families, retirement families who are separated by a larger home and buy less, and willing to invest.

In recent months, for the first time in several years, we have witnessed inflation in Bulgaria, which will also affect people's desire to acquire ownership. Data from the Registry Agency shows about 3500 deals in Black Sea municipalities, where buyers of properties are mostly Russians. These figures also show an increase in the share of purchases by Bulgarians who see a good opportunity at good prices to acquire property to use in the long term.