Despite the pandemic that broke out in 2020, the real estate market in Bulgaria did not experience serious fluctuations.Copy HTMLCopy text
Demand for residential and commercial properties remained at “pre-quarantine” levels. However, the consumer vector has changed a little: until 2020, the main buyers were people, but now Russian speakers from Europe (Germany, France) are actively buying, and the Bulgarians themselves are in a hurry to profitably buy apartments and apartments in their homeland. In this article we look at what awaits the real estate market in 2024.
Best investments in real estate
Bulgarian real estate is in demand both among local residents and foreigners, and especially citizens of Germany, France, England, and Israel. For most buyers, this is an investment. Apartments are purchased to save money or to receive passive income through renting out housing. Over the past 10-15 years, people have made up a significant share of such investors. However, now the situation has changed.
Who sells real estate in Bulgaria? Why are people leaving the Bulgarian market?
2020 has made its own adjustments to the Bulgarian properties market. Its constant participants – people – began to actively sell off previously purchased apartments and houses.
During the pandemic, transactions are carried out remotely, without a visit, with a power of attorney for a lawyer.
According to experts, the COVID-19 pandemic is not the main reason for what is happening. The change in demand was influenced by the worsening economic situation in the world. First of all, this is the collapse of the ruble, which had an impact on the purchasing power of people. The devaluation also affected current expenses: maintenance of residential properties now costs people much more.
Now the main buyers of Bulgarian real estate are local residents and citizens of Western European countries.
Efficiency of real estate investment
According to statistics, the lion’s share of the market today is occupied by the Bulgarians themselves. They account for more than 60% of home purchase transactions. Residential buildings and complexes with low maintenance fees are in particular demand among locals. Efficiency is obvious. Features of real estate investment are following in the article.
Investments for locals
The main reason for the increased demand among locals is Bulgaria’s expected entry into the euro zone. In Bulgaria there is currently no devolution of the local currency, and lending rates have fallen greatly. Most Bulgarians invest their own funds, since it is no longer profitable to keep funds in banks at 0%.
Investment in overseas real estate
When choosing a direction, take into account the purpose of the purchase: investment (saving funds in assets), renting out the property, housing for personal recreation, housing for permanent residence.
Buying for your own holiday.
It all depends on preference. While in Bulgaria, house for sale is the best choice in rural towns (Lozenets, Tsarevo, Sarafovo, Ravda) are suitable for a quiet, secluded vacation. Large resorts – Varna, Sunny Beach, Burgas, St. Vlas – for lovers of entertainment.
Moving to permanent residence.
It is better to purchase housing in large cities (Sofia, Burgas, Varna, Nessebar, Pomorie, St. Vlas). There is all the necessary infrastructure for comfortable year-round living. The Russian-speaking population is concentrated in Sofia, and there are many people in Varna and Burgas.
Taxes and maintenance of Bulgarian real estate
The cost of maintaining real estate in Bulgaria consists of two components:
- annual tax;
- support fee.
All real estate is subject to tax in Bulgaria. The exception is agricultural land and forests. Foreigners who purchase an object automatically become taxpayers.
What is real estate investment in terms of laws and taxes? The tax rate is set by the specific municipality in which the property is registered. It ranges from 0.15 to 0.25% of the cadastral value of the property (50% lower than the market value).
Support fee – regular fees for housing maintenance. Paid directly to the management company. For gated residential complexes, this is a mandatory expense. The tariff can be fixed or calculated based on the area of the object. As a rule, one square meter of a cheap Bulgarian property for sale costs the owner 8-12 euros tax. The higher the class of the complex and the wider the package of services provided, the more expensive the service.
Prospects for the development of the real estate market in Bulgaria
The COVID-19 pandemic made its own adjustments to the market, but could not collapse the demand for residential properties in Bulgaria. Experts assure that interest in real estate will continue in the near future, and 2024 is the best time to buy a home at an attractive price.
