The mainstream media in North America tends to concentrate on US or Canadian real estate. Yet they should not forget that North American investors are interested in international real estate. Bulgaria is one country that has sparked the interest of investors.
2009
There was never a better time to buy a home in Bulgaria. In today's real estate market, buyers in Bulgaria need less cash and have more choices. The poor economy was the final straw for many homeowners already struggling to keep their homes. This unfortunate circumstance put more homes on the market at reasonable prices.
In the first half of 2009, housing prices in Bulgaria dropped an average of 23% compared to the previous year. Homes were selling for almost 10% less in the second quarter of 2009 than in the previous three months. Prices dropped everywhere from Ruse to Shumen, from Stara Zagora to Yambol.
Even higher priced residential properties in larger centers experienced price reductions of more than thirty per cent. Apartments in cities such as Sofia still added up though to be a pricey option. The average property price for a Sofia apartment reached €895 per square meter.
Yet people considered the advantages of such ownership. More appealing lending offers and equally attractive prices lead buyers to act on the good deals. Some lenders, however, required a substantial deposit in this current economic climate.
Indeed, many superb holiday homes had lower sale prices than usual in this marketplace. The global economic slump saw some homeowners wanting to sell their vacation properties. People put their primary focus on basic needs in recession periods.
Holiday properties, as well as seaside and ski retreats, are always the first consideration in any "cutting back" process. Many Bulgarians bought back property which they original sold to UK buyers. Numerous properties went on the market around Veliko Turnovo. Housing prices dropped 38% in Veliko Turnovo.
Bulgarians who bought back these properties got an excellent investment. These properties were in ideal locations and most had also undergone recent renovations. The Bulgarian property market was once considered the top investment location in the world. The Black Sea Coast has been the most dramatically affected by the current real estate market.
During the first half of 2009, sellers were often observed dropping their prices every two week period. Housing prices, however, were expected to stabilize late in 2009 or early in 2010. Interested buyers were encouraged to act quickly to experience the current favorable low housing prices. The Black Sea capital, Varna, had the highest housing prices while Kyustendil had the lowest priced residences.
Most recent home buyers purchased finished units. Eighty per cent of real estate sales in Bulgaria from January-June 2009 were for completed projects. The most popular choice was a two-bedroom apartment selling for below BGN 50 000. The most active sales period was between May and June. Housing construction was at a standstill in the same period. The construction sector, however, was also expected to make a quick and full recovery.
The Bulgarian property market can be a profitable investment for residents and international buyers. The average property price is €551/square meter. Bulgarian prices for consumer goods and services are 51% of the average across the EU. Food prices factor in at 67% of the average EU price. Bulgarian real estate can offer the best deal in a better home for you.
2010
For the second year in Bulgaria, real estate prices favor the property buyer. Although prices are still low, that scenario is expected to change in the near future. Yet there are conflicting opinions about the state of Bulgarian real estate in the coming months. If you are an investor, you might want to act while Bulgarian homes sell for low prices.
Would You Consider Investing In Bulgarian Real Estate?