Price formation on real estate in Bulgaria
Foreign buyers often mistakenly assess the situation in the real estate market in Bulgaria assuming that all objects are sold at low prices. However, construction costs remain the same, so there is a gradation of prices, which will help to understand the price formation in the Bulgarian real estate market.· 300-550 EUR/sq. m.At such a price you can buy only cheap and low quality lodging in Bulgaria. Selling accommodation cheaper than 550 EUR per square meter in Bulgaria means trading at a loss, because the cost of construction exceeds this figure. At this price it is unlikely to find quality lodging. There is also a high risk that the object is laid to the bank or has not been yet commissioned and has no Permission to use – Act No. 16. These proposals are designed for unskilled buyers, who do not handle the situation, and in the pursuit of savings they are ready to take on too much risk.
· 600-1000 EUR/ square metersis an adequate price for a commissioned object at 3 or 4th seafront. Mid-level lodging that ranks below the elite or luxury level (as it is often indicated in the advertisement) corresponds to housing with 2-3 stars. If you don’t have enough money for a more expensive purchase, standard housing of an economy class without any special features would be the appropriate solution.
· 1000-1800 EUR per square meters is astandard price of objects with high-quality infrastructure, ready access to unspoiled beaches, an absolute readiness and availability of Permission for use – known as Act No. 16. A great view of the sea may open up from the apartment, and nearby there may be a great beach. After the crisis, the price of such facilities has fallen by half, but they still remain the highest, since such lodging allowsyou to rest in a prime location and be confident in the safeness of property buying process. In neighboring countries (Croatia, Montenegro, etc.) it is hardly possible to buy lodging for such a price, quality and infrastructure as offered in Bulgaria. This is due to the unique Bulgarian nature and acceptable economic conditions for developers.