The Internet is full of cheap property on Bulgaria's black sea coast. In some cases, houses or apartments near the sea are sold for 10-15 million euros. And even if not to take into account such fantastic offers, the Bulgarian housing remains the cheapest among EU member States. What are the causes of low prices on the Bulgarian "squares"?
According to data portal Numbeo for 2019, the cost per square meter in Bulgaria is 700 euros. In Sofia square meter is estimated at 900 Euro in Varna and Bourgas - 837 and 863 euros respectively. On the black sea coast resorts prices are ranging from 500-700 euros per square meter.
Find out more about the real estate prices in Bulgaria in 2020.
The reasons for the low prices for Bulgarian property
Cheapness is primarily due to the specifics of the local housing market and low incomes of Bulgarian citizens in comparison with other countries in the Eurozone. Among other factors – the decline in the sector during the crisis of 2008 and the increase in sellers willing to reduce the price. Consider these other reasons in more detail.
Reason 1: the Socialist heritage of the country
A large proportion of the housing stock in Bulgaria is a legacy of the socialist era. During the transition period due to low living standards and low demand, new buildings are not built. By 2000, the cost of the Bulgarian square meter on the secondary market amounted to about EUR 200.
In the period from 2001 to 2008, the tourist boom and a sharp jump in the demand for new apartments has led to a boom construction. The result property on the sea has risen by 3-4 times, up to 800-1000 Euro per sq. m. price Growth was accelerated before and immediately after the accession of Bulgaria to the European Union in 2007.
During this period, owners of Bulgarian property are many citizens of Russia and the CIS.
Reason 2: impact of the financial crisis of 2008
Since 2008, housing in the background of the global economic crisis began to rapidly fall in price, losing by 2013, 45% of the peak pre-crisis level. Only by 2014, the market stabilized and began to recover gradually.
Reason 3: Low cost of living.
Despite EU membership, Bulgaria is a developing country with relatively low incomes. Bulgarians receive the lowest in the EU salaries – 66% lower than in Romania, and 2 times lower than in the Czech Republic and Poland. And the value of the property, as you know, depends on the purchasing power of the population.
Also due to the lower cost of building materials and labor, SEB��the cost of construction in Bulgaria is below the European average.
Reason 4: the rise of the cheap offers for the sale of real estate by the Russians.
The last time the Russians began to sell their property in Bulgaria on the sea. Many circ*mstances have changed, and contain apartments became expensive in the first place due to the double devaluation of the ruble against the Euro. And this is the main reason why some Russians are willing to sell their apartments much cheaper than buying.
An objective look at the market of Bulgarian property
The Bulgarian market is a little different from other European countries. There are a lot of cheap objects and a lot of expensive real estate in 50-100 metres from the sea, or in the prestigious areas of Varna and Burgas. In General Bulgaria the ratio of pros and cons – is quite promising and profitable direction for the acquisition of real estate abroad.
Anna Pisareva, Manager-consultant at BolgarskiyDom:
Before buying a house or apartment in Bulgaria:
- Examine the price level of your interest.
- Keep in mind that too cheap apartments in the resorts can be located in the residential complexes of seasonal low quality of construction or at a great distance from the sea. If we talk about cheap homes for 5-10 thousand, that is, as a rule, the tumbledown buildings in remote rural areas with poor infrastructure and poor roads.
- On the other hand, even a good object you can buy at a discount, if you find a seller who wants to sell their property.
Be careful, counsel, do not rush and carefully approach the choice of object. Managers of the company, "Bolgarskogo.com" will help you understand the intricacies of the Bulgarian market and will help to find a good offer for the best price.
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