Bulgaria's Sofia Property Market Back on Track

Bulgarian capital Sofia's real estate market seems to have recovered from the crisis, as it has grown four times more quickly than in its worst period, according to an analysis from Bulgarian Real Estate company, Address.

Property in Bulgaria - Today's Top Listings

Living in Bulgaria - Today's Top Stories

Prices are stable in Sofia, according to the company, with properties valued under Euro 50000 the most sought after among buyers. But even though 45% of all buyers are looking for properties below Euro 50000, deals worth more than Euro 100000 are not so rare as they used to be.

Address Real Estate says that two-bedroom apartments are the most sought after type of property in the Bulgarian capital and buyers are now more inclined to complete deals more quickly within 1 to 3 months on average.

Most property buyers in Sofia are employed in the economic sectors that have remained relatively unaffected by the crisis, including the food, medical and education industries as well as in state administration.

Related articles:
Bulgarian Property Prices Reach Their Baseline
Brits Searching for Bargains in Bulgaria's Property Market
Time to Buy in Bulgaria's Recovering Property Market
Bulgaria Gateway Property Market Analysis - Q1 2011

Read more on our websites ...
MovetoBG.com - and Twitter @MovetoBG
Bulgaria Gateway - and Twitter @BulgariaGateway
Property Partners BG - and Twitter @PropertyPtnrsBG - or on Facebook

FeedWind

Bulgarian Property Prices Reach Their Baseline

According to the popular TV programme 'A Place in the Sun', the cost of buying property in Bulgaria is getting cheaper, which is good news for Brits seeking a bargain holiday home in Bulgaria.

From the latest data released by Raiffeisen Real Estate, as featured on the programme, Bulgaria property prices continued to fall during the final quarter of last year, with prices in the capital Sofia dropping by 9.4 per cent year-on-year and by 5.2 per cent compared to the third quarter of 2010.

This is confirmed in the latest market analysis from Property Partners BG but Managing Partner, David Livingstone says, "The worst is behind us, prices have reached the bottom of the curve and there are signs that buyers are returning to the market, picking up bargains before prices increase again."

Although the residential property market in Bulgaria has received massive investment from both locals and foreigners over the past few years, property prices have fallen and transactions have slowed considerably since 2007, as a consequence of an oversupply of homes and the financial downturn in the economy. Overall, property prices have depreciated by around 60 per cent, which means that price levels are currently the lowest in Europe.

Related articles:
Brits Searching for Bargains in Bulgaria's Property Market
Time to Buy in Bulgaria's Recovering Property Market
Bulgaria Gateway Property Market Analysis - Q1 2011

Our aim is to provide a single source of information, advice and practical help for everybody visiting Bulgaria. So, whether you are planning a relaxing holiday break, a travel adventure, a fact-finding trip for your property purchase - or if you are thinking of moving here permanently, we recommend that you visit our websites at:

MovetoBG.com - and Twitter @MovetoBG
for comprehensive information, advice and assistance

Bulgaria Gateway - and Twitter @BulgariaGateway
for accommodation options, resources and services

Property Partners BG - and Twitter @Prop_PartnersBG - or on Facebook
for all the latest real estate listings and offers of properties for sale

Positive Trends in Bulgarian Property Market for 2011

Following last month's increased sales and construction activity in the Bulgarian property market, the last quarter of 2011 is expected to show further growth as the tourism industry predicts big numbers.

Property in Bulgaria - Today's Top Listings

Living in Bulgaria - Today's Top Stories

Total income from tourists this year is expected to reach €2.7 billion, according to the National Tourism Board. The forecast is based on an expected rise of 14% in the number of foreign tourists visiting Bulgaria - approximately 6 million over the whole of 2011. This influx would then result in a 4.5% increase in the income generated from foreign visitors.

The rise in tourism is also expected to help the Bulgarian property market, which has already seen prices drop and level of construction rise. The highest increases in the number of visitors is expected to come from Russia, Slovakia, Hungary and Poland, while more British and German tourists are anticipated, albeit in smaller groups. Interestingly, the majority of Eastern European tourists are travelling to Bulgaria by car, as more and more Romanians, Greeks and Turks join the growing numbers of visitors.

With property prices currently the lowest in Europe and the economy outperforming expectations in the second quarter of the year, it's certainly a good time for people looking to Bulgaria for their holiday home. The country's current account surplus is now at EUR 885.8 million compared with a deficit of EUR 390.8 million a year ago while, at the same time, apartments in the ski resorts can now be purchased for just half the price at which they were being snapped up in 2008.

It's little wonder then that Bulgaria has regained its top ten position in the MoveChannel's monthly "Top of the Props" report .. and as David Livingstone, CEO of MovetoBG said, "If you thought we had heard the last of Bulgaria as a preferred investment destination for property buyers, you were mistaken. As we enter the last months of 2011, the Bulgarian property market is looking as positive as ever.

Related articles:
Bulgaria Holds Top-10 Spot in Property Purchase Favourites
Bulgaria's Q2 Property Sales Rocket by 48%
Experts Agree that Property Market has Bottomed Out
Bansko Apartments Now Available at 50% of 2008 Prices
Time to Buy in Bulgaria's Recovering Property Market

Read more on our websites ...
MovetoBG.com - and Twitter @MovetoBG
Bulgaria Gateway - and Twitter @BulgariaGateway
Property Partners BG - and Twitter @PropertyPtnrsBG - or on Facebook

FeedWind

Picking up a New Trend for Property Purchase in Bulgaria ..

BOGOF ... it's been done before ... but, so far as we are aware, not for buying homes overseas. So, is it just a gimmick - or the start of a new trend within Bulgaria's property market?

Property in Bulgaria - Today's Top Listings

Living in Bulgaria - Today's Top Stories

Within its primary role of seeking out the most attractive property offers available in Bulgaria, Property Partners BG has picked up details for a brace of Buy One Get One Free offers now on the market, which information portal Bulgaria Gateway describes as ".. an interesting and innovative marketing strategy with the potential to create a new niche sector in the market."

The first offer is for two 3-bed rural properties with land, each priced at £10000 ... buy either and the other one comes absolutely free. Similarly, two plots of development land - one in Karandila National Park and one on the coast near Kavarna, overlooking Thracian Cliffs Golf Course - are listed at the same £10000 price mark ... with the same 2 - for - 1 purchase arrangements.

After a couple of years of relatively quiet activity following the global recession, Bulgaria's property market is now well on the road to full recovery. The economy is strong, investment in infrastructure continues to grow year-on-year, tourism numbers are better than at any time since 2006 and, in its monthly analysis of buyers' web search activity, the Move Channel has identified that Bulgaria is now firmly back in the top-ten preferred investment destinations. Most importantly of all, though, property prices are amongst the lowest in Europe and market experts are now reporting strong indicators of steady and sustainable growth. Leading real estate agents have consistently reported rising sales volumes since the beginning of 2011 - and this is confirmed by data from the Bulgarian National Registry showing that the number of completed property deals increased by an amazing 48% in the second quarter of 2011, compared with the same period in 2010.

"The market has clearly turned the corner .." said David Livingstone, CEO of MovetoBG.com, ".. and this new type of offer may well be a reflection of the growing levels of confidence that both buyers and sellers are now demonstrating about property in Bulgaria. Each of the properties on offer represents genuine value for money in its own right - and two for the price of one is a real bonus for buyers, as well as a powerful shop window pitch for sellers."

"It's all about added value .." he continued, ".. and it doesn't get much more valuable than adding a second property for free - which is why we expect to see much more of this strategy in the coming months."

Related articles:
Bulgaria's Q2 Property Sales Rocket by 48%
Experts Agree that Property Market has Bottomed Out
Rising Property Sales Reported in Bulgaria
Bulgarian Property Prices Reach Their Baseline
Time to Buy in Bulgaria's Recovering Property Market

Read more on our websites ...
MovetoBG.com - and Twitter @MovetoBG
Bulgaria Gateway - and Twitter @BulgariaGateway
Property Partners BG - and Twitter @PropertyPtnrsBG - or on Facebook

FeedWind

Russians Moving Inland for Bulgarian Property Bargains

Following the unprecedented levels of interest from British investors between 2005 and 2008, Bulgaria's property market is currently experiencing a dramatic turnaround in the nationality of today's buyers.

Property in Bulgaria - Today's Top Listings

Living in Bulgaria - Today's Top Stories

Real estate agents are reporting that more and more Russian investors, whose primary focus has previously been towards villas and mid-to-high value properties situated along the Black Sea Coast, are now coming to Bulgaria with the intention of buying a second home in the country or living here permanently. It appears that many Russians are having a change of heart and direction when considering purchasing a new home in Bulgaria. Many have decided to take a look at what’s on offer away from the coastline and are now heading inland to find their dream home.

The condition and type of property that potential buyers are looking for is also changing. In addition to refurbished and furnished properties, which are always in demand, estate agents are now showing older rural and village properties in need of renovation to their Russian clients.

It is thought that the economic climate and the low cost of properties is proving attractive to a new tranche of Russian buyers who are considering a permanent move to Bulgaria in a bid to escape the ever increasing cost of living in their homeland. Locations such as the old capital of Veliko Tarnovo, Stara Zagora, Sliven and areas around an hour's journey inland from the coast are experiencing growing interest and are affordable to many people with a lower budget.

Property experts are forecasting that the current trend will develop further through 2011 but, as the property market continues to recover, Russians will once again be replaced by the British as Bulgaria's number one investors.

Related articles:
Look Inland for Today's Bulgaria's Treasures
Bulgarian Property Prices Reach Their Baseline
Bulgarian Property Market Boosted by Russian Investors
Bulgaria Gateway Property Market Analysis - Q1 2011

Read more on our websites ...
MovetoBG.com - and Twitter @MovetoBG
Bulgaria Gateway - and Twitter @BulgariaGateway
Property Partners BG - and Twitter @PropertyPtnrsBG - or on Facebook

FeedWind

Bulgaria's Q2 Property Sales Rocket by 48%

Data from the Bulgarian National Registry shows that the number of completed property deals has increased by an amazing 48% in Q2 2011 compared with the same period in 2010.

Property in Bulgaria - Today's Top Listings

Living in Bulgaria - Today's Top Stories

The total of completed property deals in Bulgaria increased by 36% in the first half of 2011 and by more than 90% in Q2, compared with the first 3 months of the year.

Commenting on the recently released data, David Lingstone, CEO of MovetoBG.com said, "This is a particularly important signal for people considering property purchase in Bulgaria because it locks into place what has now become a positive trend through 2011. We have been seeing increasingly positive figures since the end of last year .." he continued ".. but, without question, Q2 has been the most successful 3-month period for the real estate industry since the beginning of the financial crisis."

MovetoBg.com has recently identified a number of positive movements in the property market on the basis that the combination of price falls and increases in the volume of sales has been the key indicator of recovery across the real estate sector.

Related articles:
Experts Agree that Property Market has Bottomed Out
Rising Property Sales Reported in Bulgaria
Bulgarian Property Prices Reach Their Baseline
Time to Buy in Bulgaria's Recovering Property Market
Bulgaria Gateway Property Market Analysis - Q1 2011

Read more on our websites ...
MovetoBG.com - and Twitter @MovetoBG
Bulgaria Gateway - and Twitter @BulgariaGateway
Property Partners BG - and Twitter @PropertyPtnrsBG - or on Facebook

FeedWind

Limited Return of Bulgarian Property Market on the Way

Alongside numerous analyses from local experts identifying positive indicators in the property market, data from Business Monitor International's 'Bulgaria Real Estate Report 2011' now confirms that Bulgaria's real estate sector is currently experiencing a limited recovery.

Property in Bulgaria - Today's Top Listings

Living in Bulgaria - Today's Top Stories

"Bulgaria's real estate sector has experienced a startling downward trend in recent years as the value of property has plummeted led by a dearth of demand. Early data from the first two months of 2011, however, suggest that a return is on the way", the report says.

It cites data that an average of 1550 property auctions took place a month in January and February 2011, compared with a monthly average of 750 in 2010. The rise was due to increasing numbers of non-performing mortgage loans and old tenders without buyers in the country. This increase is expected to increase accessibility to lower-priced properties in Bulgaria

The real estate sector has experienced a small upturn in recent months, which suggests that Bulgaria is likely to see an increased supply of new residential, office, retail and industrial space over the coming years, according to BMI.

A key prediction of the report is that yields will remain broadly stable over the short term but the market has some way to go to recover before experiencing anything like the growth of the previous decade, BMI points out.

In terms of macroeconomics, the view that Bulgaria would experience a more robust return to economic growth has played out sooner than expected, with the country's economy registering significant recovery in the final quarter of 2010, posting real year-on-year growth of 2.1%.

Related articles:
Bulgaria's Sofia Property Market Back on Track
Bulgarian Property Prices Reach Their Baseline
Time to Buy in Bulgaria's Recovering Property Market
Bulgaria Gateway Property Market Analysis - Q1 2011

Read more on our websites ...
MovetoBG.com - and Twitter @MovetoBG
Bulgaria Gateway - and Twitter @BulgariaGateway
Property Partners BG - and Twitter @PropertyPtnrsBG - or on Facebook

FeedWind

Bulgarian Property Market Boosted by Russian Investors

Bulgaria's property market, once again becoming a real estate focus for UK buyers, has now developed to include Russian investors as a major driving force within its continuing recovery.

Property in Bulgaria - Today's Top Listings

Living in Bulgaria - Today's Top Stories

Over 200000 Russian nationals have bought property in Bulgaria and Alex Romanenko, President of the International Real Estate Federation (FIABCI), has announced that the total cost of the properties they have acquired now exceeds USD 1billion.

According to Romanenko, the similarity between the Russian and Bulgarian languages, as well the traditional close connection between the two countries are among the factors which contribute to the strong interest on behalf of the Russian buyers.

It was announced last week by Bularian National Radio that, while UK buyers are beginning to return, Russian buyers dominate the market and Bulgaria still ranks first in Russia among the countries which attract the most buyers in the mid-price market segment. This was confirmed by real estate agents who also commented that property prices fell by around 25 to 30% last year and these are the levels around which the market will stabilise in 2011.

Related articles:
Bulgarian Property Prices Reach Their Baseline
Positive Signs of Recovery in Bulgaria's Property Market
Bulgaria Gateway Property Market Analysis - Q1 2011

Read more on our websites ...
MovetoBG.com - and Twitter @MovetoBG
Bulgaria Gateway - and Twitter @BulgariaGateway
Property Partners BG - and Twitter @PropertyPtnrsBG - or on Facebook

FeedWind

Positive Signs of Recovery in Bulgaria's Property Market

Residential real estate markets in Bulgaria and other parts of Eastern Europe are showing signs of recovery with some areas recording price increases and a rise in the number of new properties being built.

Property in Bulgaria - Today's Top Listings

Living in Bulgaria - Today's Top Stories

According to the Ober-Haus Baltic Apartment Price Index for May, apartment prices in most of the capital cities in the Baltic region increased by around 0.7% to a new average price of €1025 per square meter.

The report also shows that, while annual price changes are now in positive territory again, average apartment prices have dropped by approximately 34% since the peak of the market in December 2007.

In Bulgaria builders and developers are returning to the market with the number of new properties being built increasing by 16.7% in the first quarter of 2011. But the figures also show that the number of new developments is still way below what it was a year ago, with new house construction down 5.3% year on year.

The largest numbers of residential building permits were granted in the Black Sea cities of Varna and Bourgas, followed by Sofia. The average usable area per unit went up to 77.8 square meter compared with 76.4 square meters in the same period in 2010. The largest flats and houses were built in Gabrovo, Sofia, Yambol and Razgrad, while the smallest homes were in Vidin and Plovdiv.

Overall, the index concludes that now is a good time for investment because, while there are signs that prices are rising, the real estate markets in the Baltic have some way to go before they get back to where they were in 2007.

Related articles:
Bulgarian Property Prices Reach Their Baseline
Time to Buy in Bulgaria's Recovering Property Market
Bulgaria Gateway Property Market Analysis - Q1 2011

Read more on our websites ...
MovetoBG.com - and Twitter @MovetoBG
Bulgaria Gateway - and Twitter @BulgariaGateway
Property Partners BG - and Twitter @PropertyPtnrsBG - or on Facebook

FeedWind

EU Scheme to end Problems in Cross Border Property Deals

The EU parliament has announced the introduction of a pilot scheme - the Cross Border Electronic Conveyancing (CROBECO) - which promises to end the probems experienced by expats when buying property in Spain and other EU countries.

Property in Bulgaria - Today's Top Listings

Living in Bulgaria - Today's Top Stories

Describing the key components of the scheme, set up by the European Land Registry Association (ELRA) and funded by the EU, Diana Wallis MEP, highlighted that it will allow for the purchasing procedure to be settled in the buyer's home country. Property deals will be managed under the protective laws of that country and compensation to the buyer will be guaranteed for unknown restrictions and violation of the contract by the seller.

Currently being piloted in Holland and Spain, the CROBECO scheme means that a Dutch buyer of Spanish real estate can apply Dutch law to the contract and ask a Dutch court for compensation from the seller if he later finds out there are unknown public limitations, such as retrospective planning laws, affecting the property. Similar pilot schemes in other countries are expected later this year.

Diana Wallis MEP, a long-term campaigner for an EU-wide guarantee of legal certainty when buying overseas, said: "The EU has a role to play in helping to facilitate property deals across borders and at the very least in providing a framework of legal certainty. In practice, this means we must ensure that there is full access to information on the state of a property, the conditions attached to it and any other legal obligations or obstacles. This must go hand in hand with a transparent administration of the property deal and a quick and clear judicial process in case something goes wrong."

A spokeman for ELRA said: "The fact that the deed is processed in the buyer's own language by a conveyancer from their own country, will make the buyer feel that they are better legally protected and less reluctant to buy real estate in foreign countries."

The scheme is likely to be highly popular with property investors looking to snap up a bargain safely, as well as to countries such as Spain who are desperate to entice foreign buyers back into their housing market.

While applauding the principle and the intentions of the CROBECO scheme, though, there are a number of practical obstacles to it's implementation. As David Livingstone, CEO of MovetoBG.com points out, "At the immediate level, there are clear cost implications, here, for international legal services, translation and validation of information that will all have to be built into the purchase price. More importantly, though .." he continued ".. we need to understand how the scheme is actually going to reconcile the structural and constitutional differences between property purchase, title and ownership in different countries."

Related Articles:
New Payment Law for Property Deals over 10000 Leva
New cash payment law implemented with no problems

Read more on our websites ...
MovetoBG.com - and Twitter @MovetoBG
Bulgaria Gateway - and Twitter @BulgariaGateway
Property Partners BG - and Twitter @PropertyPtnrsBG - or on Facebook

FeedWind

30% of Bulgarian Properties now Purchased by Foreigners

It has been recorded that the population of Bulgaria has dropped by nearly 600,000 in the last 10 years. This has not however, slowed down the demand for property in the country. Far from it in fact, as many foreigners are now investing in the country. The rise in foreign investors and decline in Bulgarian population means that the property market is being mainly supported by the investments and demands of foreigners.

Property in Bulgaria - Today's Top Listings

Living in Bulgaria - Today's Top Stories

Recovering from the global recession more quickly than most of its European neighbours, Bulgaria is fast re-discovering its reputation as a property hotspot. For anyone seeking a low-cost holiday home or considering a permanent lifestyle shift, this is the place to be and, if you are planning a move to Bulgaria, it may well be that your neighbours or nearby residents will be non-natives.

So who's buying these properties? Well, at the height of the buying boom just a few years ago, around 80% of the buyers in Bulgaria were holiday home hunters and quick-flip investors. Today, though, the market has changed and the speculative buyers snapping up two or three houses at a time have been replaced by lifestyle buyers looking to live in Bulgaria.

In terms of buyer nationality, there has been some reduction in the number of British investors over the past couple of years but, at the same time, Russians and Scandinavians have been snapping up the bargains and have purchased over 200,000 properties in Bulgaria since 2008. Domestic demand has also slipped over the past few years and many Bulgarian real estate agents would probably have gone out of business if it were not for foreign investors.

This, of course, is largely because of the impact of the global recession on the property market. Since peaking in late 2007, prices in Bulgaria have plummeted and are now among the lowest in Europe but there are indications that this downturn may be coming to an end. David Livingstone, of Property Partners says that, "The worst is behind us, prices have reached the bottom of the curve and there are signs that buyers are returning to the market, picking up bargains before prices increase again."

In addition to exploring the property options of Bulgaria's cities and traditional holiday destinations, the advice to today's home seeker is to leave the resorts behind and journey inland. What you will find, here, is a veritable treasure trove of rural and village properties at prices that just don't appear in other countries. It's in the villages of Bulgaria that you will find some of the cheapest houses and the best bargains - and it's in this sector of the market where those who may have missed the lifestyle change boat in other countries find that there still plenty of opportunities available.

Every real estate agent in the country has a selection of rural and village properties on their website - and there are some that specialise in this sector. At the portal site of Property Partners, for instance, you can view multiple lists covering hundreds of houses available today for less than €10000.

This is the fundamental reason why around a third of today's property deals are being concluded by foreigners but, as Bulgaria's recovery continues apace, these bargains will not be available for too much longer

Related articles:
Look Inland for Today's Bulgaria's Treasures
Bulgarian Property Prices Reach Their Baseline
Time to Buy in Bulgaria's Recovering Property Market
Bulgaria Gateway Property Market Analysis - Q1 2011

Read more on our websites ...
MovetoBG.com - and Twitter @MovetoBG
Bulgaria Gateway - and Twitter @BulgariaGateway
Property Partners BG - and Twitter @PropertyPtnrsBG - or on Facebook

FeedWind

Experts Agree that Property Market has Bottomed Out

On the strength of a slight pick-up in the residential property market in Bulgaria over the past year, prospects remain stable and positive, concluded participants in a pan-european real estate conference in Sofia. The experts discussed the market situation at a panel forum during the recent 2011 BalREc Investments and Real Estate market conference in Sofia.

The enthusiasm of potential customers and banks for financing new projects will remain moderate for the next 1-2 years, the experts agreed but, despite that, from a mid-term perspective, the potential of the market, especially in Sofia, remains high, said Maximilian Mendel from the Warsaw-based REAS market research company.

To prove his point, he mentioned the insufficient supply of residential properties that meet up-to-date buyer requirements, as well as the long-term positive perspective for the Bulgarian economy. Mendel also said that housing prices are not expected to drop much further in the near future and that, at present, prices in Sofia are back to their levels from 2007.

According to Lembit Tampere, CEO of Estonian real estate group Arco Vara Group, the price drop will not last forever. High and low points are equally unstable, he pointed out. "It would be ridiculous to expect that the price of an apartment could be EUR 500 per sq m in five years time", Tampere added. He also explained that the first signs that the market is hitting the bottom are showing. As an example he cited the increased sales volumes on the market in Sofia.

The Q1 Raiffeisen Real Estate index shows that average residential property prices in Sofia have dropped by 9.4% in the first quarter of 2011 year-on-year, and by 5.2% in comparison with the last quarter of 2010. In this context, Georgi Pavlov, executive director of Address Real Estate said that 96% of the deals carried out with his company over the past few months were sealed at what he called "attractive prices." The entrepreneurs who took part in the discussion agreed that in this respect the market is expected to recover in the next few years.

According to recent data from Property Partners BG, the prices of residential property in Sofia averaged between 820 and 850 Euro per square metre for the first quarter of 2011, down by around 100 euro per square metre from the second half of 2010. In their latest market analysis, Managing Partner, David Livingstone says, "The worst is behind us, prices have reached the bottom of the curve and there are signs that buyers are returning to the market, picking up bargains before prices increase again."

Related articles:
Bulgarian Property Prices Reach Their Baseline
Time to Buy in Bulgaria's Recovering Property Market
Bulgaria Gateway Property Market Analysis - Q1 2011

Our aim is to provide a single source of information, advice and practical help for everybody visiting Bulgaria. So, whether you are planning a relaxing holiday break, a travel adventure, a fact-finding trip for your property purchase - or if you are thinking of moving here permanently, we recommend that you visit our websites at:

MovetoBG.com - and Twitter @MovetoBG
for comprehensive information, advice and assistance

Bulgaria Gateway - and Twitter @BulgariaGateway
for accommodation options, resources and services

Property Partners BG - and Twitter @Prop_PartnersBG - or on Facebook
for all the latest real estate listings and offers of properties for sale

New cash payment law implemented with no problems

The long awaited law on the restriction of cash payments was finalised on 22nd February 2011 and officially came into force three days later.

Given the history of cash deals and under declared values in the property market, it was widely expected that the new law would be met with a degree of resistance and some difficulty in implementation. Somewhat surprisingly, though, the new payment regime seems to have become de facto practice very easily and very quickly. Asked whether the new law had affected property transactions, David Livingstone from Property Partners BG commented, "There have been no indications from any of our partners that the new payment rules have caused any difficulties. It's early days yet but, ultimately, the law will mean that sellers will price their properties more realistically, the legalities will be more transparent and buyers can be more confident about their purchase, all of which has to be good for the property market"

Under the new law the maximum amount which can be paid as a cash transaction is 15000 BGN, approximately 7700 Euro. If the sum is equal to or higher than 15000 BGN, or it is a payment of less than 15000 BGN but part of an agreement for a sum above 15000 BGN, it must now be paid with a bank transfer or through a bank account. The law also applies to payments under deals and agreements concluded before the law entered into force but not completed at the time of enforcement.

In terms of the sale and purchase of properties the new law removes the possibility of cash payments, cash deposits or full payments for properties whose price is equal to or above 15000 BGN. Payments of such sums must now be made only via a bank transfer. One of the main objectives behind this law is that it will lead to a considerable contraction of the grey economy and to a corresponding increase in revenues to the state budget because it will provide documented financial records for the correct calculation of taxes and VAT.

The law provides strict sanctions for cash payments made above the allowable limit. Upon a breach of the law, businesses or legal persons will be sanctioned with the amount of the full sum paid, while individuals or physical persons can be fined by up to 50% of the full sum paid under the deal.

For advice, assistance and information about Moving to Bulgaria, we recommend that you visit our website at MovetoBG.com - for accommodation options, resources and services, we suggest Bulgaria Gateway - and for all the latest listings and offers of properties for sale, Property Partners BG

Bulgaria Gateway Property Market Analysis - Q1 2011

A number of interesting and positive trends have become evident in Bulgaria Gateway's analysis of the property market for the first three months of the year.

Increase in market activity:
The average level of activity in the market for the first quarter of 2011 was slightly higher than in the same period last year and in the preceding period, Q4 2010. The increase was measured at 3%, which is relatively low but the importance of this increase is that it is the first move back into positive territory for almost three years.

Levelling out of prices:
Average prices of completed sales over the past three months have generally remained stable. City apartments and properties on the coast have seen little change but there have been falls of around 9% in the ski resorts and 6% in the mid-price sector in the bigger towns and cities. Interestingly, though, these price reductions appear to be coming from sellers accepting that their asking prices have been too high, rather than from buyers negotiating for lower completion prices.

Market trends:
As in previous quarters, the majority of completed sales in this period have been mainly for high cost luxury properties or for rural properties and village homes at the low end of the price scale, reflecting the fact that the main requirements of buyers are bargain prices and value for money. In addition, though, two new trends have emerged during this quarter. Potential buyers are now registering interest in: firstly, furnished houses in good condition priced at around €30000 to €40000 on the Black Sea coast and, secondly, low-cost rural houses for renovation - together with those that have already been renovated - in a number of inland areas, including Veliko Tarnovo, Sliven, Stara Zagora and Plovdiv.

Buyer Nationalities:
Bulgarians and Russians have continued to be identified as the main property buyers during this quarter. Bulgarians tend to be more interested in properties in the main cities, while Russians still focus their purchases in the Black Sea resorts. Although lower in numbers, there have been buyers from a number of European countries, including: France, the Netherlands and Germany but, probably because of the financial pressures in their respective countries, Greek and Irish buyers have all but disappeared from the market. The most interesting trend that has become apparent, though, is the return of British buyers who have re-entered the market with purchases of reduced price apartments in the beach resorts and low-cost rural properties.

Summary:
Describing the overall market situation for the period, experts from Property Partners BG said, "Buyers are returning; there are more client enquiries and web searches; the number of completed deals is rising and, for the first time since 2008, the market is moving from negative into positive territory. This both confirms and endorses the current experiences of our partners and reinforces the recovery that has been widely forecast for the second half of 2011".

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

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