The upsurge of the residential property markets in Bulgaria’s big cities has now been felt in the holiday property segment too. The result is a stabilization of prices, growing demand and sales volumes, and finding new markets.
One of the new markets is naturally the local one with Bulgarians already accounting for 50 percent of buyers in the biggest sea and ski resorts. In some of the regions they even represent the main group of buyers — in the seaside resorts to the South of Burgas, and in the mountain resorts Borovets and Pamporovo.
There is also stable foreign demand for holiday properties in Bulgaria, which has survived through all the crises, and the range of buyers’ nationalities is constantly growing. Since last year there has been an increase in the interest of buyers from neighbouring countries and from former Socialist Bloc countries such as Greece, Romania, Serbia, Macedonia, Ukraine, the Czech Republic, Moldova, as well as from various Western European countries.
What is new at the beginning of this summer season is the awakened interest by Russian buyers in the seaside resorts, which brings expectations that they will be much more active, compared to previous years.
This year the sales volumes and property prices have remained the same as last year.
The average price at which deals are made in Sunny Beach during the first and in the second quarter of 2017 is 530 EUR/sqm compared to 505 EUR/sqm in 2016. The total purchase price of apartments in Sunny Beach this year is also without a significant change – EUR 32,200 in 2017 compared to EUR 29,200 a year earlier. Property prices in high-class apart complexes are at levels from 750-800 EUR/sqm.
To the South of Burgas, the average price of apartments purchased in Sozopol is 600 EUR/sqm, with prices starting at about 500 EUR/sqm and reaching levels of 1600-1800 EUR/sqm in the top complexes on the Southern Black Sea Coast.
Similar to the seaside resorts, there are no significant changes in the property markets in the ski resorts either. Generally, last year’s trends in prices, sales volumes, and mix of buyers remain the same.
The average price of apartments sold in Bansko in the first quarter is 370 EUR/sqm and in Q2 – 360 EUR/sqm compared to 366 EUR/sqm for the whole of 2016. The average total purchase price is EUR 25,200 in 2017 compared to EUR 24,700 last year.
Prices for high-end hotel complexes in Bansko start at about 450 EUR/sqm, with the tendency for a slight increase in prices of this type of property.
Borovets continues to be the most expensive ski resort. The average price for the second quarter based on real deals is 600 EUR/sqm compared to 595 EUR/sqm last year.
In Pamporovo the average price during the second quarter of 2017 is 340 EUR/sqm – again no major change since last year.
In conclusion, the holiday property markets in Bulgaria are now offering very good opportunities with attractive prices, a variety to choose from, and enough time to make up your mind and make a purchase decision, and the summer season is particularly suitable for that.
The two holiday property types are now clearly distinguishable. One of them are the vacation properties that have the characteristics of residential property, while the other are the properties in complexes with a number of extras, reception and maintenance, that are designed to work as hotels and have already gained experience in this activity and can show results.
The difference between the two classes of property is in prices, in maintenance fees and perhaps the most important — in their potential to be leased and generate income.
When buying a holiday home, it is recommended that you define what the purpose is. If it is a holiday home for your own use and better lifestyle, then the residential holiday homes are a good option at very good prices, low maintenance fees, furnished and ready to be used.
If you are looking for an investment for rental income, then it is good to consider a higher-end property that will have higher maintenance costs, but also the potential to generate rental income.
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