Bulgarian property market review 2007

Stara Planina Properties, a real estate company specialising in the sale of Bulgarian property, looks back on the Bulgarian property market’s performance in 2007.

Different sectors of the Bulgarian property market performed differently during 2007…

In the main towns & cities

The strong rise of property prices in the main cities and towns exceeded the predicted 15- 20%. This was a result of three main factors:

1. A continuation of the momentum which had built up in 2006 in line with increases in property prices globally (let’s remember that Bulgaria is now part of a global market).
2. EU accession created an acceleration in these trends as many people and companies made decisions to invest once EU membership was a reality - this applies to commercial property as well as residential.
3. A strong domestic economy has provided a local demand for housing, retail and office property.

In the biggest resorts

The market in the biggest resort areas such as Sunny Beach, Bansko and Pamporovo slowed down, and the prices have plateaued and even decreased in the case of properties located away from main facilities. On the other hand there was increased interest in luxury holiday properties by Russian buyers in the Black Sea resorts.

An update on the Super Borovets project

After many years of talk, the Super Borovets project started in the autumn. It seems that the local authorities have done well and planned the infrastructure first in order to suit the needs of the holiday dwellings which will be built afterwards. Let's hope that the lessons from some other resorts have been learnt and it will not be necessary to cure the defects in years to come.

In the rural areas

The market in the rural areas moves from cheap houses towards properties with more facilities. The supply is huge and not all is in areas with good infrastructure. The market in villages with easy access to facilities and in good areas will develop faster. During the last year, there has been more interest in purchasing rural property from foreigners who are considering moving to Bulgaria permanently within a few years time, rather than those who buy to invest. It is fair to say that, in general, prices are stabilising in rural areas and it is now a buyers’ market.

Along the borders with the EU

Another trend, which will see further development, is the influence of the property market along the borders with the EU neighbours of Greece (to a lesser extend) and Romania. Rousse is one of the major spots to keep an eye on to see how the open borders can influence the local economy. Comparatively higher prices on the housing market in Romania urged many Romanians to look at the Rousse region as an option to purchase a more affordable home in a good environment. We can expect that the difference in the prices in the border areas will lessen with the easier movement between the countries.

An update on Bulgaria's Natura 2000 territories

After various protest campaigns from eco-organisations, Bulgaria's Natura 2000 territories were approved to include most of the areas which were suggested. Human activities in the protected territories would be restricted so as not to damage the nature. With the approved territories, Bulgaria has one of the highest numbers of protected areas in Europe.

Stara Planina Properties are specialists in the sale of Bulgarian property, being the first British-owned company of its kind in the country, servicing the needs of foreign property buyers.

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Information courtesy of Stara Planina Properties. | Last Updated: 30 January 2008