Contribution of Geya Antonova, Interior designer from Cozy Design Studio
Are you planning to invest in property in Bulgaria?
and you ask yourself if it is a good idea?
The answer is YES, it is a good one.
The Bulgarian real estate market is still developing, and unlikely other EU capitals from the former Soviet Bloc, like Praga and Budapest, the prices are still affordable and haven’t reached their peak.
Sofia, in particular, is a rising hub for both local professionals and expаts, given the blooming amount of tech-focused companies based in the city.
This is raising the needs for long term rent of upper-class apartments. Being a less popular, hidden gem in the crown of the European Union, Sofia is becoming a popular kick-off – weekend destination, making it worth considering an Airbnb investment option.
Short or long term rent?
I would say in my professional opinion, design it as a property for long term rent, and if, with time, you decide you can add some equipment and switch to a short term rent.
There are signs of rising regulations regarding the short term rents like Airbnb through the EU. While, Sofia, maybe staying in the shadow for a while, in February 2020 the Parliament started discussions for implementing new regulations for the short term rented property- the owner will need the permission of 60% of the other property owners in the building before renting it.
The proposal did not pass, this time, but it is very likely the question to be raised again. Also, there are plans for implementing a city tax for every short-term tourist, equal to the ones which are applied for the hotels.
Those changes are not a fact but are a signal that there will be a major change in the short-term rental business in Bulgaria. So, therefore, better have an option B and have a property which is suitable also for a long –term rent.
City center or the suburbs?
The city-center apartments give you more options for the future use of the apartment, it can be an office, public space, Airbnb or classic rent. However, the suburbs at the foot of Vitosha mountain are popular among the upper class, better-paid professionals and are a good idea, as a location for long-term luxury rent.
You may be lucky and hit the jackpot, finding quickly a lessie for a luxury home with a big rent at Simeonovo, Boyana, or Dragalevtsi but my experience is that even amazingly decorated apartments are taking much more time to rent out and find the right lessies, than the ones closer to the city center.
There are many more obstacles there- how lively the area is, infrastructure, heating systems or lack of it, additional maintenance costs for the closed complex, etc. – which is narrowing your possible audience.
On the other hand, a beautifully designed apartment, not high end luxurious, but an upper class one, in the center is attractive to a wider range of people, with a much wider age and working profile.
The other thing in the very long term is, that the value of the properties in the absolute center will always be raising with a higher percentage than the ones in the suburbs, where validation is more uncertain.
Do the refurbishment by myself or hire an interior designer?
Furnishing and renovating a home is an activity that one would probably be able to do on their own, but to succeed with the timeframe, budget and practically implement your ideas to the standards you have requires a dedication of time and some good experience.
It is not the same whether you do a refurbishment at home where you may be familiar with the specialists of the different specialties you will need, or in a foreign country. Very simple tasks can be time-consuming and lead to organizational hustle. On top of that most of the construction specialists and workers in the refurbishment field only speak the Bulgarian language.
Another argument towards the use of interior designer for the idea, project and realization and implementation management is the guaranteed return of the investment, for hiring one, when it comes to a rented property.
The rent of two similar properties, in the same area, with similar size may differ up to 50% according to style and interior design. Good design and coziness pay out better.
What about in other Bulgarian cities?
There is a difference in cities different than Sofia, Sofia is the capital and the most populated city in the country, then we have other big cities as Plovdiv that is having a renaissance helped by the European Capital of Culture 2019, attracting people and business to the region and in this way making the market more exciting. The transformation of Plovdiv into an attractive center for business and tourist destination supports the internal migration and the desire of young people to live in the city.
How are the costal cities doing?
Over the last 10 years, we have seen continues growth in the construction in the main coastal cities, like for example, Varna and Burgas, and we can see modern and stylish buildings, especially close complexes.
And also many people are deciding to invest in a second home in the coastal regions.
In conclusion, we see that the Bulgarian real estate market presents interesting opportunities for investment and will depend on your budget and plan what will be the better choice for you!
