What can you expect to see in the property market in Bulgaria in 2016? The residential property market in Bulgaria was certainly affected by the 2008 global housing collapse, but it did weather the brutal impact of the recession for the most part. 2014 was a good year for Bulgaria, and 2015 was an exceptional year. The property trends in Bulgaria 2016 look generally positive for the most part.
The recovery in Bulgarian real estate is 2 years old now. After a weak demand for new properties that persisted for at least 5 years after 2008, things have taken a turn for the better. There is today an exceptional demand for new properties in cities such as Sofia, the capital of Bulgaria. Ski chalets in Bulgaria’s top ski resorts such as Bansko continue to remain very high.
The vast and unspoiled Black Sea Coast remains very popular. Beach resorts such as Sunny Beach are always full of foreign tourists, 365 days a year. There’s always a party on in Sunny Beach and it’s a festive, carnival atmosphere here all through the year.
Bulgaria has finally emerged as a top overseas property destination in Europe. Bulgarian properties are very popular with Britons and Irish – many of whom have bought properties in and around Sunny Beach. It represents a laid back lifestyle for them, far removed from how it’s like back home in the UK or Ireland.
But the most important buyers of properties in Bulgaria are Russians. Russians have always been the traditional buyers of Bulgarian property, perhaps because of the historically close ties between Bulgaria and Russia and also because of the similarities in Bulgarian and Russian cultures. Bulgaria is geographically close to Russia, so it takes only a couple of hours by flight to get to Sofia from a nearby Russian city.
A lot of Russian investors are looking to move to Bulgaria because of the rapid decline in the Russian economy because of the fall in oil prices and the devaluation of the Rouble. Many want to get their money out of Russia before the Rouble loses any more value, as that would decrease their buying power substantially.
It’s not just the cash rich, wealthy Russians who are leaving Russia, even those belonging to a middle income group are getting out of the country as well. Russians prefer to buy homes in Bulgaria rather than any other country because of the comfort level they share with Bulgaria and the locals here. This has made them among the most enthusiastic investors in residential properties in Bulgaria.
What’s also quite interesting is that people are more willing than ever before to buy properties in the rural areas of Bulgaria, not just in well developed resorts or cities. A rural house in Bulgaria offers a perfect getaway from the busy lifestyle of cities and make for perfect holiday dwellings.
Polina Stoykova is the operations manager of Bulgarian properties. She talks about how the new trend is to buy homes in rural areas in Bulgaria. Here are excerpts from a radio interview given by Polina: “Rural properties are quite a good investment as long as one invests sensibly in view of the parameters of the specific property. At the same time, through the years more than half of the foreign clients of BULGARIAN PROPERTIES bought rural properties with the aim of using them during their holidays or for permanent living, and not only as an investment. In the last year we are witnessing a trend where more and more Bulgarians want to own a rural house to use as a getaway at the weekends, to spend their holidays in or to live there permanently especially if they work in the nearby city.”
Interestingly, it is not just foreign nationals who are buying properties in Bulgaria. There are a lot of local Bulgarians, most of them young professionals working at high paying jobs, who have shown great eagerness to buy holiday homes or apartments in the country. Generally, the real estate scenario in Bulgaria looks good for 2016 and should get even better in the near future.