The Bulgarian Real Estate Market: Having Fun in the Sun Without the Coronavirus ConcernTrying to find the link between real estate markets around the world and the coronavirus outbreak is not hard at all. Some consider it too soon for the COVID-19 craze to reflect on property prices, but it is already happening regardless of whether people like it or not.
The good part? Just like any other tough period, such a global crisis needs to be viewed as a time for opportunity and new beginnings. Having this in mind, we know that focusing on the positive side of things is key, and we will give you reasons to be positive.
If you are already considering a number of destinations for your real estate investment, you need to add Bulgaria to the list. We will throw in some arguments on why this is a great idea.
Why Does Bulgaria Offer So Many Investment Opportunities?
Bulgaria is a small European country, located in the southeast part of the Balkan peninsula. This location is crucial for the growth of the country’s economy as it serves as the pathway between Europe and Asia. Bulgaria benefits from a moderate climate and fantastic nature, and we’ll focus on that below.
There is so much to discover within approximately 111,000 square kilometers (42,857 square miles) of Bulgarian land. The Bulgarians are one of the oldest communities in the world: the country was established in 681 AD, and traces of more than 13 centuries of rich history can be found all over its territory.
Ancient ruins, medieval fortresses, peculiar monasteries, and much, much more are scattered around this enchanting land. This is one of the main reasons why the country welcomes millions of tourists annually.
However, there is an even better reason for Bulgaria to be among the top locations for spending the holiday season or buying a second home: the combination of amazing nature and perfect climate.
Some people view the Balkan country as an exotic destination, and they are not wrong either. Anyone who has been there at least once can confirm that all four seasons are present. The best part? Bulgarian summers are long: they last from mid-May to late September.
The Bulgarian Coastline Offers Both Staggering Beauty and High Potential for Making a Profit
The sun shines throughout most of the year, which is great news, as the country’s coastal line begs a visit. This is where you can find most of the outstanding real estate offers as well. Here is a more detailed look:
- Bulgaria has 378 kilometers (235 miles) of coastline, including 200 kilometers (124 mile) of beaches.
- Two of the five biggest cities in the country (Varna and Burgas) sit on naturally shaped bays on the coast.
- Both Varna and Burgas have modern seaports and airports, welcoming a significant part of all tourists visiting the country.
- Dozens of smaller towns and internationally-recognized resorts are scattered all over the coastline.
The Black Sea is not only dazzling, but it also provides a number of opportunities (not to mention that it warms up to 29°C (84°F) in late July or August).
As the country’s infrastructure improves constantly, the same happens with most of the locations near the shoreline. Many developers have been investing for years in the area, creating many different apartment complexes.
This process caught speed after the 2008 global financial crisis’ recovery period passed. The crisis was devastating for the real estate market, and it picked up its pace in 2014. It has been growing ever since, and foreign buyers contribute to that growth.
Things to Consider Before Investing in the Bulgarian Real Estate Market
We know everything that could possibly be related to sourcing, acquiring, and managing property in Bulgaria, and we can guide you through the whole process, but let’s start with the basics.
Since 2012, all EU and EEA citizens are eligible for purchasing real estate in the country, including land. Bulgaria joined the European Union back in 2007, and, despite the financial crisis that swiped across many nations a year later, the country has come a long way since then.
The economy has been growing at a steady rate, with many international investments and operations transforming its social and economic landscape. Billions of euros were poured into cities’ infrastructure, commercial zones, and the road network.
With four modern airports and two big seaports, Bulgaria is ready to welcome visitors, tourists, and investors from all over the world.
Anyone could buy property in Bulgaria, but non-EU and non-EEA residents would need to register a form of legal entity first.
The following steps related to finding a trustworthy real estate agent, preparing the full set of documents and checks, and closing the deal are not as straight-forward as most investors would like them to be, which is why we offer the full range of services.
Our consultants are familiar with every key step of the process. They are always available and would gladly consult you on the matter.
As mentioned above, those interested in real estate investments are mostly attracted by vacation property located near the sea. The capital city Sofia has been the subject of interest as well, but the mountain and ski resorts are now catching up.
Separate only a few hundred kilometers from the coastline, Bulgaria’s cozy mountains have become attractive to foreign investors all-year-round. The moderate climate is beneficial for that, alongside the well-preserved nature: taking a deep breath while exploring some of the numerous mountain tops is a whole new sensation to many. The same goes for the dozens of picturesque beaches you can find along the Black Sea shoreline.
The Market Is Currently Growing and This Is the Best Time to Invest
One may consider that all of the above-mentioned circumstances would result in steep market prices, but we beg to differ.
Bulgaria still has some of the lowest real estate prices in all of Europe, which ultimately means that now is the perfect time to invest.
In the last six years, construction has barely been able to meet demand, especially when it comes to property in the ten biggest cities, as well as the sea and ski resorts. The differences in the price levels between Bulgaria and the rest of Europe could be mind-blowing, actually, because comparing what the country has to offer often puts it in front of many other nations.
It sounds like a bit of a paradox, right? We are well aware of that, and we would gladly discuss every investment opportunity you might be interested in.
How Does the COVID-19 Pandemic Affect the Bulgarian Real Estate Market?
It is early to come up with a plausible forecast about the potential effects of the coronavirus outbreak on this particular market, but there are several facts we can share now.
Unlike many other nations, Bulgaria managed to take all the necessary precautions in order to reduce the fatality rate. Everyone is aware that the economy would be affected, but this is inevitable.
So far, the confirmed cases of people diagnosed with coronavirus are still the bare minimum, especially considering the situation in most of the other EU nations. This is a sure sign that the country would probably recover much faster than some analysts might expect.
We genuinely believe that the state of emergency in Bulgaria is most likely to be lifted by the middle of May. Even if an extension is needed, it would still not last much longer than that.
Once things slowly begin returning to normal, the process of finding the best property would also become easier. What’s more important, prices are expected to drop by 10% this summer, according to some real estate brokers.
We cannot make a prediction of our own, but one thing is for sure: demand has been lower in the past month, and time will tell what will happen in the following couple of months.
The VerdictThe most interesting thing about the Bulgarian real estate market is its history. The market has proven to be dynamic, which complies with the fast rates of the country’s overall growth.
Property prices were booming between 2000 and 2008, but the financial crisis put an end to that. Six years later, everything was back to normal, and we were about to see another year of predicted market growth in 2020 before things got complicated worldwide. Unfortunately, there are situations that nobody could predict, and we all witnessed how the coronavirus shook the world within a few short weeks.
As we already mentioned, the times of confusion and chaos sometimes mark the start of something new. Considering that Bulgaria is still able to stop the virus from spreading, chances are that life in the country would start getting back on track sooner than later.
Meanwhile, the real estate market is likely to start offering even better investment opportunities. As exotic as the country is, there will be plenty of options to choose from before spending your money on Bulgarian property.
The real estate market in the country is extremely diverse, so you can create a bulletproof investment portfolio if you play your cards right, which is something we will gladly assist you with. Even if it takes some time for the country to recover, investing in its real estate market now would likely result in a bigger profit later.
The sun will continue to shine, and the country’s welcoming climate and enchanting coastline will still be as attractive as they always have been.
Get in touch with us as soon as you decide that the time has come for you to make your most profitable investment yet.
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