Bulgaria’s Property Growing in 2016

It has been revealed that the real estate sector in Bulgaria is expected to make strong gains during 2016. Cushman & Wakefield, the property consultant specialist, said that a record-breaking year in 2015 contributed €239m (£181m) to the economy, with demand expected to continue rising over the coming year; in addition, rising tourism will help to bolster prices.

The global recession hit Bulgaria with force and the real estate market has been in a state of fluctuation ever since. Even now, property prices remain significantly discounted from their peak values in 2007; however, this is a boon for foreign investors, who are able to acquire property and land at extremely low prices.

Bulgarian Properties’ managing director, Polina Stoykova, explained that a major element in the revitalised market is the return of buyer confidence. ‘More and more buyers are thinking of buying property because real estate is a safe real asset and good investment,’ she said, adding: ‘This understanding coincided with a very favourable moment in the property market development because real estate prices are currently at levels from ten years ago and respectively, the properties are much more affordable. We could also add to the picture the improved mortgage conditions now offered by the banks.’

There are other factors to interest investors, including tourism levels. For many overseas buyers, buying property is a way to gain rental returns from those enjoying their holidays; as a result, average occupancy levels need to be high so that landlords can be guaranteed a continued and consistent revenue stream. Luckily for those interested in Bulgaria, tourism levels continue to rise, pushed by the nation’s emergence as one of Europe’s top alpine resort destinations. There is fantastic value for money on family ski holidays, for example; in addition, the country has beautiful beaches and undeveloped scenery for tourists to enjoy.

Data for Bulgaria’s winter season 2014/15 showed that over 80,000 people visited its alpine resorts, adding an additional €17.5m to the economy. Visitor numbers from Turkey increased by around 30 per cent, Tourism Minister Nikolina Angelkova said, simply because the government simplified the visa requirement process; meanwhile, there was a 17 per cent rise in the number of German visitors. Then, in August 2015, Ryanair revealed that it was to start a new route between London and Sofia in May 2016, which will bring even more tourists to the country.

With a lack of real estate construction, property prices in Bulgaria have been boosted of late. Prices remain low, but a lack of development means that valuations are expected to begin rising quickly. The injection of cash from increasing tourism is stabilising the economy and house prices as a result, which means modest growth is expected throughout 2016.

For foreign investors wanting to get into the overseas property market, Bulgaria could be the ideal place to start. With current prices being low, individuals won’t have to risk as much capital as in other countries. Although gains are set to be slow and steady, there is money to be made.