Suzanne
31-05-06, 08:58 AM
There are several factors that contribute to this:
http://www.propertyinbulgaria.sagabg.net/images/stories/property_market.jpg
Mortgage lending potential - currently, mortgage loans are 5% of the total credit supply within the local banking sector. In developed credit markets, this rate is usually in the range of 15 - 20%.
Increased foreign direct and indirect investment in Bulgarian real estate determined by:
o
Bulgaria's expected EU membership perspective;
o
Expanding tourist industry;
Stable macroeconomic indicators:
o
GDP annual growth of 4.5 % to 5%;
o
Dropping unemployment rate: from over 16 % to under 13 % for the last 15 months;
o
Improved credit rating
o
Attractive Return on Investment rates in the real estate sector - on average 15 to 18 percent.
The harmonisation of Bulgarian legislation with that of the European Union means that the actual procedure of a real estate transaction in Bulgaria is not that much different now to the procedure that exists in other European countries.
Additionally, property in Bulgaria is associated with much lower running costs, compared to those in other European countries. The owner of a real property is obliged to pay an annual real property tax, which is equal to 0.15% of the declared value of the property. In addition to the real property tax, owners also pay waste -collection fees, which are of minor importance. If your property is a part of a residential complex the owner will normally pay a contribution to the housing union of about £80 per year for 24 hour security, cleaning, swimming pool, lighting, insurance, etc.
The market of Black Sea coastal real estate in Bulgaria has grown significantly since the beginning of year 2003. Sales prices of brand new income residential properties have increased almost twice in some areas compared to year 2002. Seafront real estate was on average 30% more expensive than water view locations. Bulgaria is still a popular holiday destination for lower income tourists, which is the main reason for higher demand for smaller and cheaper real estate.
Local market of residential properties in big cities along Black Sea coast has grown notably. During the last year demand was higher than supply, due on one hand to the increased supply of mortgage loans and on the other to consistent migration of workforce from inside the country to sea resorts and big coastal urban centers like Varna and Bourgas where more jobs are available. In 2003 the unemployment rate for the city of Varna was 5% in accordance with the NSI of Bulgaria. As a result, the price hike of residential property was almost 24% in Varna.
Plots of land were also attractive for investment purposes. In 2003 their prices had increased more than 30% on average compared to year 2002. Some beachfront parcels for development of leisure properties had reached EUR 35/sq.m. compared to similar properties sold at USD 15/sq.m. in 2002. In certain areas close to leading resorts like Albena, Golden Sands, Sunny Beach and others, prices had increased more than twice for the previous year and varied between EUR 35-55/sq.m.
During the first quarter of year 2004 the REMI index, reflecting real estate trends on the residential, business and land markets, has risen with 4.28 points, prodded by the rising prices at residential areas.
According to NSI of Bulgaria, the quarterly real estate prices growth rate is 12.5%. Yet, Sofia is the most expensive real estate market with 2.8% increase followed by the towns of Varna (23.7%), and Bourgas (16.8%).
Bulgarian Properties Highlights
Overview of the properties in near Sofia region
There are several nice areas to live in, in Sofia. Most foreigners with children chose one of the three more suburban places, like Boyana, Dragalevtsi or Simeonovo. Here you will find yards, maybe a small pool and trees. If you chose to go even further out, you find nice clean air and space in Bistritsa, 30 minutes from the city centre. For couples with older children (15 and up) or without children, the central areas is more suitable, like Lozenets or Doctor’s Garden.
There are several nice areas to live in, in Sofia. Most foreigners with children chose one of the three more suburban places, like Boyana, Dragalevtsi or Simeonovo. Here you will find yards, maybe a small pool and trees. If you chose to go even further out, you find nice clean air and space in Bistritsa, 30 minutes from the city centre. For couples with older children (15 and up) or without children, the central areas is more suitable, like Lozenets or Doctor’s Garden.
The downside about living in Suburbia is that you need a car to go everywhere. There also aren’t many shops in these suburban areas, you need again to drive to go and get basic things like milk and bread.
The Boyana area is nice because of its proximity to the hiking trails in the mountain. In the lower part of Boyana, there is a small supermarket, a post office, and a nice old little church.
Dragalevtsi is another popular area for expats with children. It is somewhat more of a village, with a little centre with cafes and vegetable booths. There is a supermarket between Dragalevtsi and Simeonovo that is open 24 hours. The downside with Dragalevtsi is the Cherni Vrah, the road going up from the centre to Dragalevtsi.
The area of Simeonovo is easier to access, by the Simeonovsko Chausse. From Lozenets it takes only 10 minutes to go to Simeonovo. The downside here, as in some of the other areas, is that the roads can be very steep the higher up towards the mountain you go.
http://www.propertyinbulgaria.sagabg.net/property_market.aspx
http://www.propertyinbulgaria.sagabg.net/images/stories/property_market.jpg
Mortgage lending potential - currently, mortgage loans are 5% of the total credit supply within the local banking sector. In developed credit markets, this rate is usually in the range of 15 - 20%.
Increased foreign direct and indirect investment in Bulgarian real estate determined by:
o
Bulgaria's expected EU membership perspective;
o
Expanding tourist industry;
Stable macroeconomic indicators:
o
GDP annual growth of 4.5 % to 5%;
o
Dropping unemployment rate: from over 16 % to under 13 % for the last 15 months;
o
Improved credit rating
o
Attractive Return on Investment rates in the real estate sector - on average 15 to 18 percent.
The harmonisation of Bulgarian legislation with that of the European Union means that the actual procedure of a real estate transaction in Bulgaria is not that much different now to the procedure that exists in other European countries.
Additionally, property in Bulgaria is associated with much lower running costs, compared to those in other European countries. The owner of a real property is obliged to pay an annual real property tax, which is equal to 0.15% of the declared value of the property. In addition to the real property tax, owners also pay waste -collection fees, which are of minor importance. If your property is a part of a residential complex the owner will normally pay a contribution to the housing union of about £80 per year for 24 hour security, cleaning, swimming pool, lighting, insurance, etc.
The market of Black Sea coastal real estate in Bulgaria has grown significantly since the beginning of year 2003. Sales prices of brand new income residential properties have increased almost twice in some areas compared to year 2002. Seafront real estate was on average 30% more expensive than water view locations. Bulgaria is still a popular holiday destination for lower income tourists, which is the main reason for higher demand for smaller and cheaper real estate.
Local market of residential properties in big cities along Black Sea coast has grown notably. During the last year demand was higher than supply, due on one hand to the increased supply of mortgage loans and on the other to consistent migration of workforce from inside the country to sea resorts and big coastal urban centers like Varna and Bourgas where more jobs are available. In 2003 the unemployment rate for the city of Varna was 5% in accordance with the NSI of Bulgaria. As a result, the price hike of residential property was almost 24% in Varna.
Plots of land were also attractive for investment purposes. In 2003 their prices had increased more than 30% on average compared to year 2002. Some beachfront parcels for development of leisure properties had reached EUR 35/sq.m. compared to similar properties sold at USD 15/sq.m. in 2002. In certain areas close to leading resorts like Albena, Golden Sands, Sunny Beach and others, prices had increased more than twice for the previous year and varied between EUR 35-55/sq.m.
During the first quarter of year 2004 the REMI index, reflecting real estate trends on the residential, business and land markets, has risen with 4.28 points, prodded by the rising prices at residential areas.
According to NSI of Bulgaria, the quarterly real estate prices growth rate is 12.5%. Yet, Sofia is the most expensive real estate market with 2.8% increase followed by the towns of Varna (23.7%), and Bourgas (16.8%).
Bulgarian Properties Highlights
Overview of the properties in near Sofia region
There are several nice areas to live in, in Sofia. Most foreigners with children chose one of the three more suburban places, like Boyana, Dragalevtsi or Simeonovo. Here you will find yards, maybe a small pool and trees. If you chose to go even further out, you find nice clean air and space in Bistritsa, 30 minutes from the city centre. For couples with older children (15 and up) or without children, the central areas is more suitable, like Lozenets or Doctor’s Garden.
There are several nice areas to live in, in Sofia. Most foreigners with children chose one of the three more suburban places, like Boyana, Dragalevtsi or Simeonovo. Here you will find yards, maybe a small pool and trees. If you chose to go even further out, you find nice clean air and space in Bistritsa, 30 minutes from the city centre. For couples with older children (15 and up) or without children, the central areas is more suitable, like Lozenets or Doctor’s Garden.
The downside about living in Suburbia is that you need a car to go everywhere. There also aren’t many shops in these suburban areas, you need again to drive to go and get basic things like milk and bread.
The Boyana area is nice because of its proximity to the hiking trails in the mountain. In the lower part of Boyana, there is a small supermarket, a post office, and a nice old little church.
Dragalevtsi is another popular area for expats with children. It is somewhat more of a village, with a little centre with cafes and vegetable booths. There is a supermarket between Dragalevtsi and Simeonovo that is open 24 hours. The downside with Dragalevtsi is the Cherni Vrah, the road going up from the centre to Dragalevtsi.
The area of Simeonovo is easier to access, by the Simeonovsko Chausse. From Lozenets it takes only 10 minutes to go to Simeonovo. The downside here, as in some of the other areas, is that the roads can be very steep the higher up towards the mountain you go.
http://www.propertyinbulgaria.sagabg.net/property_market.aspx