Investment Attractiveness And Real Estate Market in Bulgaria

Experts predict that in 2012, luck will accompany those who are going to buy property in Bulgaria. Many of the local residents will buy housing for the first time, taking advantage of low prices in the country, and those of foreigners who have available funds will be smart enough to invest in the Bulgarian property market.

It is expected that property prices in Bulgaria will remain low and may even fall further during 2012, but no one is ready to say how low they will actually fall. It is expected that the greatest demand will be used real estate, which is sold for € 55,000 or less.

Last year, the number of properties sold in Bulgaria increased by 30% compared to 2010, however, these properties were generally located in the low- end market segment , a trend that will continue this year.

If you compare the average price per sq.m. Housing in 2011 (790 euros per square meter) with the same period of 2010 (920 euros per square meter), it is easy to calculate that prices fell by 14%. The average price for selling apartments in Sofia in 2011 is 61,500 euros, which is 20% lower than the average price of apartments sold in 2010 - 76,000 euros.

In the well-known seaside resort "Sunny Beach" the average purchase price of apartments in 2011 was 29,200 euros, and in 2010 - 36,500 euros, i.е. Prices fell by 20%. Apartments on the sea coast in 2011 were offered an average of 745 euros per square meter, and the average price of an apartment was 50,600 euros.

Since the beginning of 2012, the interest of buyers has been noted mainly for cheap apartments, and the prices of the purchased properties during the first two months of the year only rarely exceed 50,000 euros. The reorientation of demand for cheaper housing has led to a reduction in the variety of purchased real estate, which in turn led to a real price drop: approximately 10%.

The construction industry suffered in Bulgaria last year, falling from 11.7 billion leva to 9.9 billion leva, which means that developers this year to avoid

Problems will strive, by all means sell their objects - with a focus on apartments and apartments, as they are in great demand, given the price. It is expected that large buildings of shopping and business centers will continue to be built.

Generally speaking, the Bulgarian real estate market has maintained its reputation among investors, despite the economic crisis in Europe, remaining, for example, in the top ten places for investors wishing to buy property abroad. In 2011, for the first time in three years, the Bulgarian property market has returned to the top ten of the world's investment-attractive markets.