The unusually warm weather at the end of April and the beginning of May caused some of the resort complexes on the Bulgarian Black Sea coast to open their doors on Easter. The topic of buying a vacation property near the seashore is again on the agenda. Who's buying, who's selling, are there still market implications from the coronavirus pandemic and what are they? Polina answers these questions in an interview for the largest real estate site imot.bg Stoykova, executive director of Bulgarian Properties.
Mrs. Stoikova, what is happening on the market of holiday apartments and houses on the Bulgarian Black Sea coast?
At the beginning of 2024, even still outside the active tourist season, we are seeing a lot of activity in the seaside holiday property market. People are preparing for the upcoming summer, with the search covering the entire Bulgarian Black Sea coast. We notice that interest is focused on budget apartments, even if they are further away from the main tourist attractions.
Who is selling and who is buying seaside vacation properties today?
The main buyers continue to be the Bulgarians, who are very active and more and more of them learn about the possibilities of buying their own property by the sea. Foreigners on the market are limited, as they mainly come from countries such as Romania, Poland, the Czech Republic, in general, neighboring countries or those that have traditions in tourism along the Bulgarian Black Sea coast, with most of them preferring Sunny Beach.
The Russians currently remain more in the position of sellers and although they now have someone to sell the properties to and at very good prices, as there is demand and limited supply, they are already facing a number of problems and limitations in the sale caused by the imposed sanctions.
How has the COVID-19 pandemic changed the demand for seaside vacation properties?
The pandemic has brought more flexibility to live and work remotely, which has increased interest in owning a second home by the sea, where one can spend an entire summer or work remotely. We see that people who have acquired property by the sea since the Easter holidays take advantage of spending time there until late autumn (until the end of October), when there are still suitable conditions for walking and hiking.
So we could say that the pandemic has definitely increased interest in buying a second home, and the subsequent inflation has further accelerated this process, prompting people to rush to invest their funds.
Tourists started coming back last summer. How has this affected the vacation rental market?
The return of tourists, especially Bulgarians, who are strongly attached to certain Bulgarian resorts, has led to increased interest in buying properties there. Some are buying for their own use and others for rental investment purposes to generate income during the high tourist season. The increase in the price of hotel services gave an additional incentive to buy-to-let, which for many years did not give good opportunities for profitability.
What factors must be present in order for the Bulgarian Black Sea coast to be an attractive destination for property investment again?
We should work mainly on extending the season to be more competitive with other countries with longer summer seasons. Although our summer season is shorter, it can be extended from Easter to the end of October when the weather is still suitable for sea tourism.
In addition, improving infrastructure and services and providing better and faster transport access would also help and we see a lot being done in this direction. Also, having more flights to our seaside resorts would increase interest in them. In general, I think we are going in the right direction and this is also visible in the development of the holiday market and the return of its attractiveness, although mainly among local buyers.
Which nations as foreigners have the greatest chance to buy property on the Bulgarian Black Sea coast?
We have the greatest chance to attract buyers from neighboring countries such as Romania, Serbia, even Turkey. Citizens from countries that have traditions in offering tourist packages for Bulgaria are also showing interest – mostly these are countries from Central and Eastern Europe, Germany, Great Britain and others.
Given that we have stagnation in the sale of holiday apartments on the Black Sea, what happens to holiday homes, which are an even more expensive investment?
Houses are more difficult to sell, especially those in gated communities due to high maintenance fees and the fact that many do not own the land. However, there is a segment of the market with affluent buyers who prefer quality built detached houses with courtyards that offer real luxury and privacy close to the sea.
The warm weather since the beginning of April definitely helped the summer season start earlier. How does this affect the property market? And in general, global warming may sound abstract, but it affects the real estate market.
Warmer weather at the start of the season may have temporarily boosted interest in seaside properties, but we are seeing that the warm weather has been replaced by traditional spring weather, which is even cooler by the sea. However, it certainly provides opportunities for walks, outdoor time and full relaxation by the sea.
Warming seems to lead to more uncertainty and concerns about the long-term value of ski resort properties, but they attract not only winter sports enthusiasts, but also nature lovers, people who love the mountains and enjoy them all year round. year.
What are your predictions for vacation property prices – apartments and houses this summer?
We predict that prices will remain at existing levels due to the slowdown in the number of transactions and the expressed preference for more budget properties. In most resorts, prices remain around 800 EUR/sq.m for furnished apartments, while in the most expensive areas they reach 1,300 EUR/sq.m based on our data on actual transactions.
Which settlements will be the most preferred for buying property?
All resorts attract interest, but the areas around Sunny Beach, Sveti Vlas, Ravda, Pomorie, as well as Sozopol and Chernomorets in the south, and Byala, Balchik and Kavarna in the north are particularly active. These places attract the most interest among buyers.
What will happen to prices?
Prices are likely to remain at the same levels, and we can expect discounts on properties that have stagnated on the market. We will not see significant price changes this year.
Construction by the sea continues? Where and what is being built?
Construction continues, developing small buildings or subsequent phases of existing complexes, as well as completing buildings and complexes abandoned years ago.
At what prices does it sell?
Prices vary between 1100 and 1500 EUR/sq.m depending on the location and extras in the complex.
Who buys it and for what purpose?
It should be noted that buyers of vacation properties prefer finished and furnished properties, as this facilitates their options for renting or immediate occupation, and from a distance they can hardly hire craftsmen to finish and furnish them.
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE