Bulgaria's Real Estate Market - 4-Fold Increase in Activitry

Further signs of recovery in the property market were reported today by real estate experts citing a 4-fold increase in buyer enquiries and completed sales.

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MovetoBG.com CEO, David Livingstone confirmed recent data from Bulgaria's Address Real Estate company indicating that the real estate market seems to have recovered from the crisis, as it has grown four times more active than in its worst period.

According to an analysis prepared by Address, properties valued under Euro 50000 are the most sought after among buyers. But even though 45% of all buyers are looking for properties at this price level, deals worth more than Euro 100000 are not as rare as they have been during the past year or so.

The report also points out that the majority of buyers are employed within the economic sectors that have remained relatively unaffected by the crisis, including the food, medical and education industries, as well as state administration and that they are now more inclined to complete deals more quickly, usually within 2 to 3 months after they start their property search..

While 2-bedroom apartments in the cities are the most sought-after property type in the domestic market, it is still family houses in the inland towns and villages that are attracting most interest from foreigners. Potential buyers are now registering interest in renovated and furnished properties in good condition priced at around €30000 to €40000 on the Black Sea coast and in low-cost rural houses for renovation in a number of inland areas, including the regions around Veliko Tarnovo, Sliven, Stara Zagora and Plovdiv.

Related articles:
Brits Searching for Bargains in Bulgaria's Property Market
Time to Buy in Bulgaria's Recovering Property Market
Look Inland for Today's Bulgarian Treasures
Rising Property Sales Reported in Bulgaria
Bulgarian Property Prices Reach Their Baseline

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Demographic data maps directly to regional property prices

April 5th 2011 saw the release of the first tranche of express data from February's national Census by Bulgaria's National Statistical Institute (NSI)

The data released covers a range of demographic factors, including: population change, internal migration, the age of the population and residency patterns. There is a lot more data to follow but a number of significant issues have already been established, notably population shifts in the major cities. Some 73 percent of the population now lives in cities and 27 percent in villages - but it is the changes in city populations that are currently generating most interest.

While Bulgaria's overall population has declined by around 580,000 people, there are four city regions around the country for which the NSI data shows positive population growth as a result of internal migration over the last 10 years. These regions are Sofia, Varna, Bourgas and Veliko Tarnovo which, together with Plovdiv, Rousse, Stara Zagora, Sliven, Dobrich and Pleven, are amongst the regions with the biggest populations in the country,

Clearly, population movements in a particular region are linked to demand for housing stock - so it is interesting to apply comparative data to consider how the city-by-city population changes revealed by the census may be related to the respective local property markets. Here, we can usefully employ further NSI research findings about regional property prices, together with data for the values of concluded property purchases from the Registry Agency.

Much of this information has already been analysed and complied in the recently published Ten year Review of the Residential Real Estate Market by our property partners, leading real estate agent, Bulgarian Properties and our subsequent summary review of this report - Five Key Points to pull from Major Property Report

In essence, the demographic trends from the census, the property pricing data from NSI and records for the value of completed purchases from the Registry Agency combine to form a clear pattern that shows a distinct correlation between regional population, property prices and local housing demand.

While there are one or two anomalies within this summary, such as the average value of completed purchases in the Bourgas region, for instance, this pattern is precisely what would be expected. It follows logically that prices will tend to be higher in areas with an increasing population and the extra demand that this places on available housing. What is surprising, though, is the degree of clarity and consistency with which the demographic data from the census maps directly on to property prices within particular reqions ... and because of this we can conclude that long-term trends and developments in the property market are influenced as much by local demographic factors as they are by external demands and foreign direct investments.

On the basis of these conclusions - and with a high degree of certainty - everybody seeking to purchase low-priced properties with high value-for-money potential can now focus their attention towards the cities and regions with a declining population while, on the other hand, the sectors of the property market with the greatest likelihood of growth in prices will be those with positive patterns of internal migration and increases in population, namely the cities and regions of: Sofia, Varna, Bourgas and Veliko Tarnovo.

All of which, of course, is very good news for today's buyer ...

For advice, assistance and information about Moving to Bulgaria, we recommend that you visit our website at MovetoBG.com - and for accommodation options, resources and services, we suggest Bulgaria Gateway