Property for sale Bulgaria

The Bulgarian seaside and ski resorts are full of offers for cheap properties. The prices of finished and in some cases furnished apartments start from just 300-350 EUR/sq.m., real estate agents say.

“The deals in the resorts are mainly concluded at prices between 350 and 700 EUR/sq.m.”, BULGARIAN PROPERTIES say. The company’s Chief Operations Manager explained that there are less and less property owners who want high asking prices as it is unrealistic to conclude a deal at a high price. Many owners sell their properties at a loss including foreign property owners who bought them a while ago with the aim of making a profit.

BULGARIAN PROPERTIES gave the following few examples:
- a fully furnished apartment in Bansko, bought in 2006 for 1,500 EUR/sq.m., was sold at 750 EUR/sq.m. or with a 50% loss;
- a fully furnished apartment bought in Bansko in 2006 for 1,400 EUR/sq.m., was sold with a 40% loss for 835 EUR/sq.m.;
- an apartment in Golden Sands bought for 1,385 EUR/sq.m. was sold at 700 EUR/sq.m., which is a 50% loss for the owner;
- an apartment in Kranevo bought 5 years ago for 550 EUR/sq.m. found a new owner for just 315 EUR/sq.m., which is 43% less;
- an owner of an apartment in Sunny Beach sold it with a loss of just 7%. He bought it in 2007 for 815 EUR/sq.m. and sold it for 760 EUR/sq.m.

There are also sellers who bought their properties at relatively low prices before the big price peak and now manage to sell them without a loss, the company adds.

Part of the developers are also selling at prices that are 50% lower than those at which they made deals 2 years ago. Since the beginning of 2010 many of them lowered the prices of properties along the seaside and asking prices of apartments in finished developments are starting from 360 EUR/sq.m. In Bansko the lowest prices start from about 500 EUR/sq.m. for finished unfurnished apartments.

The observations of BULGARIAN PROPERTIES show that it is British and Irish owners that are the most active sellers. Both they and the developers agree on a price close to the one paid some time ago or close to the cost price of the development.

Both in Bansko and along the Black Sea coast the buyers are mainly interested in cheap apartments ranging from 25,000 and 40,000 Euro, the company says. The prices of the most sought luxurious Black Sea properties range between 80,000 and 130,000 Euro.

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The discounts from the asking prices of properties are getting smaller, showed a check of Pari Daily. “Price discounts are now about 10% as they used to be double,” says Nikola Stoyanov, Managing Director of luxury property company LUXIMOTI.

The explanation
According to him prices have fallen quite a lot and have hit the bottom. “I believe that from now on there will be no more considerable property price decreases”, he explained. There are 10 properties with discounted prices in this week’s latest ads newsletter of the luxury property company. Six of the offers are for sale and the other four – for rent. The discounts in the asking prices vary between 1.16% and 20%.

Sensitivity
“People started reacting to the good and bad news very fast. In April, when there was good news about the global economy we had a peak in sales since the beginning of the crisis. In May, when bad news from Hungary started coming people became anxious and decided to postpone their property deals”, commented Mr. Stoyanov. He explained that this is the first time when buyers stop the process in the final stage of the deal. “When there is news about the economy starting to recover, they start buying because they think property prices will go up,” added the LUXIMOTI Managing Director.

Bulgaria is an attractive property destination not only for Brits and Russians. BULGARIAN PROPERTIES data show that there are buyers also from Ireland, Australia, the USA, and even from New Zealand.

Elite properties
Unlike in the mass properties sector the crisis didn’t nip the demand of luxury properties. It decreased but remains stable, experts say.

“There is a specific group of people who value exactly these properties and do not postpone the deal even at times like these”, said Nikola Stoyanov. He also added that there is constant demand for elite properties. The buyers are usually Bulgarians and Russians. According to him there will come a time when luxurious apartments, houses, villas, etc. will establish themselves as a separate investment product and will not be influenced by the trends in the other property sectors.

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BULGARIAN PROPERTIES would like to inform you that all Bulgarian companies, including the one you have set up for buying a property in Bulgaria, should be re-registered in the new online Trade Register by 31.12.2010.

The Law on the Trade Register applicable to the activities of all Bulgarian companies, which came into force on 1.01.2008, states that all existing companies registered before January 2008 must be re-registered in the new online register by 31.12.2010. If this is not done, they will be removed from the register of companies in Bulgaria resulting in loss of their assets (including properties in Bulgaria).

In 2009, in order to stimulate the Bulgarian economy, the government adopted a new company registration law making the registration procedure much easier thus facilitating the property buying process. The new law states that the minimum foundation capital for establishing a limited liability company is only 2 BGN (about 1 EUR).

All owners of companies in Bulgaria are advised to use the services of professional accountants to help them with their bookkeeping and with the submission of their annual tax declarations.

If you have any questions, please send us an enquiry.

Read more about the Annual Financial Reports for Company Owners

Read more about the New Trade Register and Registrations of Companies in Bulgaria