The Bulgarian property market in 2008 & 2009
Stara Planina Properties, a real estate company specialising in property in Bulgaria, reflects on the Bulgarian market in 2008 and looks ahead to what 2009 might have in store.
“The year 2008 was a difficult time for the real estate market and, unsurprisingly, 2009 is expected to be tough too. However the picture is not all negative,” explains Mr. Stephane Lambert, the director of Stara Planina Properties.
“The holiday market has suffered the most, with average prices falling in the ski resorts, along the coastline and in fringe rural locations. However, the good news is that not every sector of the market has suffered. Frontline properties and high-spec offers have faired better than the lower end of the market. In urban areas, good quality, centrally located properties have also performed well over 2008. This has been as a result of a buoyant domestic market, although the last quarter of 2008 saw some tailing off in prices as the credit crunch started to affect this market.”
The company predicts that the price of properties in Bulgaria’s holiday locations will continue to fall in 2009, with fringe rural areas being affected the most.
“While this may seem negative if you are a seller facing falling prices, if you are looking to take your money to the UK it is worth remembering that the sterling/euro exchange rate has depreciated by 30% over the last year,” says Mr. Lambert.
“This means that even if you are selling at a lower price now, you may still find you make a good profit. Likewise, for all those who are looking to buy now, there are some real bargains to be had.”
As a company, Stara Planina has noticed a shift in the profile of the business’ clients. While initial interest was shown by the British and Irish markets, now the company is seeing growing interest from other countries, in particular Russia and Romania; plus growing numbers of buyers from Scandinavia and other north European destinations.
“These new clients are leaning towards investment properties while in the case of our traditional markets of Britain and Ireland; we are seeing a growing proportion of clients looking to permanently relocate to Bulgaria,” explains Mr. Lambert.
“During 2008, we also saw quite a few of our foreign clients, who had bought properties some time ago, sell them for a healthy profit. Indeed, if anyone reading this article is considering selling the property they bought through us, then we’re happy for them to get in touch so that we can discuss the market opportunities with them.”
How will the market develop in the 2009?
“The main trends of 2008 are likely to continue into 2009. While there are some signs of a recovery in the US economy, the cycle of the Bulgarian economy is following the EU, so there are some tough times ahead,” says Mr. Lambert.
“In the resort areas, 2009 will be a time of reconciliation after years of property boom and the rapid growth of the tourism industry. We hope that this year will also be a time which sees improvements being planned for the country’s infrastructure and range of services on both a national and a local level. This will be linked with a growing interest in the rental market from people who had been hoping to sell their properties. Those who have previously made the wise decision to purchase in good locations will gain from the trends.”
Stara Planina expect the credit crunch will continue to have a holding effect on the market in the cities, while the company forecasts that the rental market will continue to develop and that high-specification properties will be doing better.
“In the current market, it is difficult to predict how long the difficulties will persist but, as always, there will be a recovery in the market and we expect to be here when it comes around to offer our services to all of our clients - past, present and future,” explains Mr. Lambert.
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.
Browse Stara Planina Properties’ range of Bulgarian properties for sale now.
Information courtesy of Stara Planina Properties.
© PropertyIndex.com 2009 | Last Updated: 26 January 2009
