The interest in holiday properties on the Bulgarian Black Sea coast continues to be there. There are many foreigners among the buyers. Recently there has been interest from Poles and Germans. Ukrainians are also buying properties, but brokers expect that after the end of the war they will start selling them, brokers say. What is the state of the market? The owner of a real estate agency on the Bulgarian Black Sea coast Veselin Hristov gives an answer to this question in a special interview for the largest real estate site imot.bg.
Mr. Hristov, let's outline the main trends in vacation properties to expect in the upcoming summer season?
We will see more properties on the market from the Russians. After our entry into Schengen, it is becoming more and more difficult and more expensive for citizens with Russian passports to come to Bulgaria, and in my opinion, more properties will be put up for sale as a result. When we have more properties, we may see prices hold. Yes, there will be growth, but the factors for it are different.
I think there will be more good properties for sale.
So Russian vacation property owners want to exit the investment?
Yes, gradually, because it is very difficult to come. All of them, when they come here, go through Istanbul by plane and then by bus and it is more expensive. It is much easier for them to go to Turkey on holiday than to Bulgaria in their own property.
Here the logical question arises, is there anyone to buy these properties? Until two or three years ago, there was interest from the Bulgarians. What is the situation to date?
There is strong interest. But we must note that many foreigners buy.
You mentioned that there are Poles, Germans returning to the Bulgarian market. What are they looking for?
Primarily German pensioners head to the Burgas region and prefer to buy properties for year-round living.
How will prices move this summer?
For me, they will stay at these levels. Today, a studio costs about 40,000-45,000 EUR. For comparison, last year similar studios were sold for around EUR 35,000 on average.
I have inquiries from clients from Sofia, whose budget is 47,000 EUR. I was pleasantly surprised and managed to find a good quality holiday apartment. There are also clients looking for one-bedroom properties up to EUR 50,000. There are almost no good quality ones. Prices are increasing for one- and two-room apartments, due to the greater demand.
What is the situation on the first and second lines? Is there an offer?
When there is a sea view, the prices are higher. The supply is small, as they are mainly occupied by hotels. This is especially true for Sunny Beach.
The maintenance fee is also a problem. For example, a complex that offers similar apartments in Sveti Vlas requires a maintenance fee of 40 EUR/sq.m. Yes – the property is on the first line, you can go out on the terrace and see the entire coast, but accordingly it has its price.
How is the market developing in the segment of the purchase of a holiday apartment to be rented during the season on a hotel basis?
Mainly work with online platforms. There are management companies that on average take about 20-30% of the price. The business is successful.
What matters is the condition of the property itself.
Is there new construction?
There are, especially in Sunny Beach. Prices are higher than average – between 1200 EUR/sq.m and 1500 EUR/sq.m. This is under construction, which means that when finished they will be around 500-700 EUR/sq m upwards. This gives the motivation for secondary sales to raise prices, because between a brand new build and the secondary market, the difference is small.
What advice do you have for clients who are just considering making the investment in buying a vacation property?
It should not be on the top floor, it should not be south-facing, it should not be for renovation. It is very important to research sellers, especially when it comes to Russian citizens. The situation there is more special and you should always work with trusted intermediaries who check the documentation. There should be no compromise with them because we work with the trust of the customers. Better no deal than a deal at any cost.
Are there any Englishmen left to sell?
Very rare. In the distant future, I expect Ukrainians to sell. These are mostly people who are buying now but will want to get out of that investment as sooner or later the war will be over. Sooner or later they will start returning to their homeland. They buy now because they want to live more normally, to invest their money. With their cash, they arrive and buy properties, which is very problematic for us, as we need to legalize this money. They have their papers of origin, and other times – no. We tell them that they have to deposit them in a bank, and there they ask for the relevant origin and it is difficult, but deals are made. At some point in the future they will sell the properties bought now.
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE