Property for sale Bulgaria

Evgeni Zlatev – the Regional Manager of BULGARIAN PROPERTIES’ Varna Office – commented the increased supply of hotels in Bulgaria for Bulgarian national TV channel bTV on May 19th 2010.

According to the offers of the company it is currently selling over 50 hotels almost half of them at the seaside. About 70 percent of these offers are along the southern Black Sea coast and the rest – along the northern coast. Most of the offers have been on the market for at least a year now.

According to Evgeni Zlatev hotel owners are selling their hotels because of their debts to creditors as they find it difficult to repay their loans. The crisis in the tourism sector also had a negative effect as the hotels are not full. The prices of the hotels offered by the agency start from 400,000 Euro and reach 10 million Euro. However, when a deal is concluded it is at a price lower than the asking price.

The Regional Manager of BULGARIAN PROPERTIES’ Varna Office also said that there is almost no demand for this type of properties, especially for the big hotels. According to him there is some interest in smaller hotels sold for up to 500,000 Euro, as those interested in them are middle-class investors.

The advice which brokers give to people with a lot of ready cash is to buy now, as hotel prices are not expected to fall further.

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Bulgaria expects a 5% increase of its tourist sector during the summer season compared to 2009, Deputy Economy and Tourism Minister, Ivo Marinov, forecasts.

Marinov informed Thursday that by the end of June, pending a public order without appeals, the communication campaign to encourage local tourism will be launched.

The campaign aims at increasing awareness about year-round travel opportunities in Bulgaria while a public bid will be held for an Internet advertising campaign. Advertising contracts with Russia and Germany will be signed by the end of the month.

Many foreign tourists like Bulgaria because they can combine winter and summer vacations with SPA services, according to Marinov. In order to sell SPA tourism better an initiative committee is organizing SPA nominations for the best SPA centers of the year. The awards will be given to popular SPA centers around the country, all conforming with international standards, on June 6th in the town of Pravets.

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The team of profit.bg asked BULGARIAN PROPERTIES whether property prices in Bulgaria will start increasing by the end of the year. Polina Stoykova, the company's Chief Operations Manager, comments that property prices will not increase by the end of 2010.

“We are still witnessing a process of price reduction which in some regions and for some property types is coming to an end. When the real estate market hits the price bottom we expect the demand and the number of deals to increase and not property prices.

Only after that can we talk of a gradual increase of prices that is commeasurable with the GNP growth upon a favourable development of the country’s economy. The property market is directly linked to the economy – for now the expected growth of the GNP for 2010 is minimal – about 0.3%, which also confirms that we cannot expect a growth in property prices this year”, said Polina Stoykova.

According to the data in our analyses, as well as according to the latest data of the National Statistical Institute, there is a growth in the prices of sold properties in some cities. However, I wouldn’t say this is a lasting increase as there are months in which there are more deals with luxury properties which are sold at higher prices and when they prevail this increases the average price at which deals are concluded.

We should also note that this year we do not expect a decrease in the prices of luxurious properties – their prices fell last year along with the decrease of all property prices. However, this process already ended and in 2010 we are to observe actual market segmentation and a correction in the prices only of low-quality properties, with bad location and in need of an overall refurbishment, as well as in the small settlements and rural areas.

The average prices will continue to serve as a reference point for the general market trends but now the trends in the different segments must be looked into more detail, added Ms. Stoykova.

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