26.4.2007

Bulgaria's Regional Property Markets Buoyed By New Construction

The two trends defining the development of Bulgaria's regional housing markets in the first quarter are the ample supply of newly-built homes and the limited availability of pre-fab apartments, shows a market survey conducted by real estate brokerage Address.

Another boon for the regional real estate markets are the transactions with rural homes.
Despite the significant price increase of pre-fab apartments in the smaller towns, the owners are still holding out in anticipation of further price gains. These, however, are highly unlikely because these properties are too expensive as it is, said Address executive director Katia Tsenova.
Most of the newly-built homes transacted on the regional markets are located in the ski resorts, mainly Bansko and Razlog. They usually involve second-home buyers.
The Razlog property market is still playing catch-up to Bansko in terms of pricing. Only residential properties in the area of the Razlog golf resort command prices between 1,300 and 2,000 euro/ sq m.

Buyers are also taking notice of the upbeat outlook for the spa tourism market in Sandanski, South-western Bulgaria. Rising demand has added 8-10% to asking price of homes in the central parts of the city which now sell at 850-1,300 euro/sq m. Parcels just outside the city limits have appreciated by 20% over late 2006 to 20 euro/sq m.
The real estate market in Blagoevgrad, located on a key road link with Greece, was also busy in the last quarter. Demand is mainly concentrated in residential districts around the Technomarket, Mr.Bricolage and Metro retail outlets.

There is demand for villa properties around Blagoevgrad with prices ranging from 5,000 to 20,000 euro.
Out-of-town villas is also one of the busiest segments of the property market in Veliko Tarnovo. Supply is dominated by fixer-uppers with an asking price of up to 20,000 euro.

Potential buyers can also choose between listings for newly-built single-family houses and gated communities in the villages of Pushlevo, Slaveikovo, Hotnitsa, Salasuka and Samovodene. These properties are also marketed as rural tourism destinations and as long-term leases for non-residents shopping for a property in Bulgaria or awaiting to move into their new local home. Renovated houses close to Veliko Tarnovo fetch rents of 200 to 800 euro per month.
The town of Elena, in the Veliko Tarnovo region, is also attractive for investors due to the opportunities for year-round occupancy. Buyers are looking mainly for large land plots for the construction of villa communities and small hotels in the vicinity of the Yovkovtsi dam lake and the village of Miikovtsi. (Dnevnik)