The demand for holiday properties in Bulgaria is from both Bulgarians and overseas buyers.
By more than 25 percent on an annual basis, the prices of holiday properties in some of the resorts in the country increased last year, according to several of the leading property companies in Bulgaria.A faster rate of price growth was noted in the second half of 2022 and at the end of 2022. What are the reasons? Besides the main factor for the increase in prices is insufficient supply of new projects over the last 5-7 years.For many years, most resorts, unlike major cities, lacked new construction. This exacerbated the supply shortage in 2022, when many sellers pulled out of the market and successful tourist seasons supported the retention of properties for rental at good yield.According to the analysis, the demand for properties in the resorts is from both Bulgarians and overseas buyers, with the main destinations for foreigners continuing to be Bansko and South coast resorts, while in the rest of the sea and mountain resorts, the buyers are mainly Bulgarians. Some rural resorts had also seen higher interest over the last year. The most expensive are the properties in Borovets of the mountain resorts and those in Sozopol and the other seaside resorts south of Burgas. Sunny Beach and Bansko have similar trends and prices, and the lowest prices are for properties in Pamporovo and some of the resorts on the Northern Black Sea coast. Other major factors for increased interest and prices are the already established trend during COVID 19 pandemic periods by people that can working remotely, pensioners and young freelancers. Not the last off course is the factor of the inflation started in 2022 that makes many to try secure their personal savings in properties.
Will housing prices go down in 2023?
The data indicate that Borovets is the most expensive, but also the most preferred among mountain resorts. The average price there for 2022 was 850 euros/sq.m. m (compared to 770 euros/sq. m a year earlier). In the last quarter of 2022, the highest levels were reached – 960 euros/sq.m. , which represents 26 percent growth on an annual basis. The average purchase price of apartments inBorovets has grown from EUR 48,300 in 2021 to EUR 60,500 in 2022. In the last quarter of 2022, the average price of homes purchased in the resort reached almost EUR 68,000.
The average price of properties in Bansko for 2022 is 555 euros/sq.m. m, and in the last quarter of the year. The average price of the purchased apartments reached nearly 50,000 euros. These are the highest prices since 2010.
What do you need to know if you decide to sell your property
The average price in Sunny Beach, based on real transactions according to data from the real estate companies, has reached 620 euros/sq.m. in 2022. The increase is about 115Eeuros/sq. m or by 22 percent compared to a year earlier.
In the resorts north of Varna, deals are concluded both at prices between 500 and 600 euros/sq.m. as well as at levels between 800 and 1000 euros/sq. m.
In the case of holiday apartments, a variety of preferences is observed both in terms of the type of apartments and in terms of the price class and, respectively, the class of the complexes, available extras and distance from the ski lifts and the beach, the analysis also states. When buying a property for the purpose of renting out, the most preferred are one- and two-bedroom apartments in top locations, and when they are for personal use, two- and three-bedroom apartments are preferred.
The demand for holiday properties remains at high levels at the first quarter of 2023 and there is hope for another good year.