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What are the clients of the property market in Bulgaria looking for

The answer to this question is who buys. Both brokers and builders say that, unlike a few years ago, when the most wanted homes were two-room homes, the situation has now changed with three rooms. The latter is especially true for young families who buy their first home and want to make room for their planned child.
The focus is on mostly new homes because of the greater comfort they offer compared to the old housing stock.


According to the agencies, the ratio between deals with newly built dwellings and an old fund is 30% to 70%, and in the boom years, new housing has formed up to half of the deals. According to Pavlov, however, the bigger difference in housing benefits built years ago is the more normal situation. He points out that in developed countries this share is much smaller. Warming up of the housing stock and population growth are the two factors driving the new construction. In Bulgaria, the second engine is already extinguished.


There is a huge supply at first glance, but it comes from the old housing stock while there is a shortage of quality housing, some analysts say. Old homes do not offer this comfort, characteristic of the new ones, but fit into the possibilities of the people.
According to data from the agencies for the last two years, the tenders for new apartments have decreased three times, because because of the crisis, the builders can not now rise to the overwhelming interest. This is the reason why smaller buildings can sell most of the apartments green. This is the stage where you can not rely on a bank credit for a home that does not exist yet, but prices are also lower. It is also a matter of risk, although according to the general opinion of the industry, the wrong investors have gone to the crisis.


Still, people should understand that when buying off plan, they do not buy a home but finance a building. It carries its own risk, which, though small, exists, reminds the experts. They exemplify practices in other countries where builders are required to finance their own construction or may accept contributions from buyers but on the so-called escrow accounts and the risk is entirely at their expense.


Small residential buildings are predominantly off plan, there is almost nothing left on the market. It's hard to say how much of the deal is on this line but their share is not too high.
Some, however, point out that in their companies virtually all dwellings are sold off plan. This segment of the market is active today for one major reason: investors are professionals and have funding for their projects. Proof of change is also the activation of issued building permits. If, in the period 2009-2010, about 30% of the building permits are issued, 60% of them are currently being executed.


Normally, until the completion of the project, we realize 75-80% of the properties, ie. They are sold. The remaining for sale properties are sold within 1-2 years after Act 16. Buying under construction allows for better choice, changes during construction, etc., which is in addition to the buyer.


The decision to buy an off plan apartment is based on a firm belief in the undisputed reputation of the developer, and in the judgment that you have found the right one for you and the second time you will have difficulty in doing so. If the reason is that the price is very low - the risk is unjustified.


Agencies say "a little more" remains to reach property prices since the boom. However, the important difference now is that compared to 2008, the income is much higher, making housing more affordable. At least as far as the largest market Sofia is concerned. In 2008, the average salary was 800 leva, and now it is 1300 leva, which is a huge difference. This means that the availability of properties is now much greater than before the crisis.
Sofia has cut off price, money is here, says Pavlov. According to the agency, the price gap in similar properties between Sofia and other major markets such as Varna, Bourgas and Plovdiv is now growing. But let's not forget that only 10% of the population participate in the housing market in Bulgaria.


A large proportion of young people, especially those in the IT sector, have a good pay and banks are courting them, allowing them to pay high housing installments. But this market is also changing, we see that some companies are being exported and these people are left with no opportunity to pay contributions. Thus, banks become the owner of the dwelling and go out on the market, choking the new production. The logic is that banks as sellers are seeking to return the money given as a loan, and the price of such a home is much lower than that of a home that is new and has not passed through its first buyer.