Experts expect this to slow down this year - if it has been between 8 and 10 % in recent years, it will now move between 4 and 8 per cent. In Sofia, as well as in Plovdiv, Stara Zagora and Rousse, there is a slight decrease in sales, but it should be kept in mind that many properties are currently sold off-plan and they are not yet part of the statistics of the Registry Agency .
In Bulgaria, 250,000 real estate deals were concluded in Bulgaria, with 9 per cent in Sofia. If we compare with the situation of 10 years ago, the current data suggests a serious decline.
We can not talk about a property bubble. This is a natural cycle through which the market passes.
According to her words, in the center of Sofia the properties are around 900 - 1500 euro per sq.m., but there are also 2000 Euros per square meter. In the southern regions the average value is 1000 euro per sq.m and in the complexes - 700 - 900 euros. How long a property will occupy on the market depends on whether an adequate price has been set at the beginning. The period is usually between one week and one month. However, there are also sales that take place for 24 hours.
More and more Bulgarians are buying property with the intention of renting it. The return on this type of investment is on average 5 - 6% per year, according to the association's data. Specific examples were given with different regions in Sofia. If you buy a 2-room apartment in Mladost for an average price of 70 000 euros and rent it for the standard for the quarter 330 - 340 euros per month, you will have an annual return of 5.6% and will return the money for 17 years . In Lyulin, where the rents are lower, the yield is around 5.4% and the upturn is 18 years. In the prestigious "Lozenets" the apartments are sold on an average of 95-100 000 euro and the rents run at 400-450 euro . The return of property there is at 5.25% and the return is 19 years. These values, however, are approximate and depend on what construction is involved, what is the location, and so on. In luxury properties, profitability is slightly higher and at offices it can reach even 8 per cent.
Currently interest rates on deposits and loans are record low and this, of course, affects the property market. On the one hand, many people prefer to invest their money in a property rather than holding them in the bank at a rate of 0.29% for example. On the other hand, mortgage loans are more affordable.
The experts advise consumers to pay particular attention to two things when they take out a home loan - what is the annual percentage rate of charge (APR) and whether the interest rate is fixed or tied to indicators such as the 6-month SOFIBOR, which is common practice.
Varna and the North Black Sea coast
In Varna in the first quarter of the year 2081 real estate transactions were concluded, which is a minimal decrease of 1% compared to the same period in 2016. At the same time, the new construction started to increase by 28 per cent. However, our seaside capital reports a rather weak construction of office buildings. One reason for this is that few foreign businesses are headed for Varna, unlike Plovdiv, because of the lack of a highway.
The deals in Balchik and Kavarna, as well as the majority of the Northern Black Sea coast, reported a decrease. A factor playing a role in this is the crisis in Russia - fewer Russians have the opportunity to buy properties in Bulgaria at the moment.
Burgas and the Southern Black Sea coast
The property market in Burgas is active and stable. There is interest in the new construction, but also in the panels that have been rehabilitated. A 29% decline in deals has been recorded for the year, but Bobev says it is due to more mature and careful buyer behavior.
The deals are decreasing on an annual basis also on the entire Southern Black Sea coast, but with less - 4 per cent. Only Pomorie boasts 3 percent growth. Basic Bulgarians buy holiday properties. Still, there is a stir among the Russians, but they are heading for cheaper possessions - less than 30,000 euros.
Average prices in Sozopol are the most salty - 845 euro per sq m. In Sunny Beach they are about 520 euro per sq m, in Nessebar - about 645 euro. To the south of Sozopol there is hardly a market.