Time to Buy in Bulgaria's Recovering Property Market

April 5, 2011 - PRLog -- There is now little doubt amongst industry leaders that the property market in Bulgaria will begin to recover in the second half of this year.

Real estate consultancy Colliers International has said that, in response to an improvement in Bulgaria's macro-economic credentials, a rebound in property sales is likely to occur from Q3 of 2011. Similarly, leading Real Estate agent, Bulgarian Properties, has forecast a recovery over the same period, with real growth in place by the end of the year.

Citing the leading real estate news agency, Propertyshowrooms.com, Bulgaria Gateway points out that property prices in the country have fallen by between 40 and 50 percent from their market peak in 2008 and that this makes Bulgaria one of the most attractive foreign investment destinations in Europe.

While this pattern of market recovery is good news for the seasoned investor, it's equally positive for the family seeking to purchase an overseas property as a family base or a holiday home - or the first time buyer looking for a low-cost and relatively low-risk purchase. As with all investments, though, the market conditions, the options and opportunities, the risks and rewards and the potential benefits need to be assessed and, above all, a structured and rational approach is essential - so, here, we have mapped out three key strategies for today's buyer ...

Strategy 1: Think outside the box - think inland, think rural …
Traditionally, foreign buyers have often overlooked inland and rural properties in the country, heading straight for the coast instead. Step inland, though, and you enter a slower world, where traditional Bulgarian life is treasured and beautiful landscapes remain unscarred by large-scale developments. As the Daily Mail's Richard Webber points out, "For anyone wanting a holiday home with a difference or contemplating upping sticks permanently, inland Bulgaria is well worth a look. There aren't many places in the world where you can buy property for less than £10,000 … but inland Bulgaria is one of them."

Rural property prices have now bottomed out after declining in recent years and are likely to start rising soon. Stephane Lambert, of Stara Planina Properties believes that this has created an ideal climate for investment. "Prices have fallen by 50 per cent on the coast, in ski resorts and rural areas …" he says "… but in urban areas, around the main cities such as VelikoTurnovo, Sofia, Stara Zagora and Rousse, close to the Romanian border, the fall has been around 20 percent. Prices have reached rock bottom and I don't think they will go much lower, so now may be the time to buy."

Strategy 2: Take advantage of the market conditions ...
Bulgaria is currently a buyer’s market and there are thousands of bargains to be found if you have money to invest.  Falling prices and continuing flexibility from sellers is helping to boost the demand for real estate. If you are selling at the moment you will no doubt be disappointed with what is happening in the Bulgarian property market because buyers are very much in the ascendancy.

According to Tatyana Emilova, manager at Colliers International Bulgaria, prices are now near the bottom of the market and buyers are becoming much more positive. "In general, buyers are very well informed now and have become much more demanding and selective when it comes to choosing their home …" Ms Emilova explained "… they are seeking an optimal mix of quality, environment and neighbourhood but it is price advantage that is their most important factor."

Strategy 3: Do your research, make your plan - and stick to it …
At the outset, you need to decide whether you are looking for: city, coast, mountain, countryside, a holiday base, an investment property, a long-term or permanent home, a new-build villa, an off-plan apartment, or a village house. Decisions made at this stage can save time and money later.

When conducting your background research, you should check client recommendations, review property websites and communicate with several agents. Narrow down your options but identify a number of possibilities so that you have sufficient flexibility of choice. Then do the numbers and make sure that your finance is in place - eg: private finance, savings, arrangements for stage payments or a mortgage facility. Set your budget and don't be swayed from it by promises - no matter how attractive - of how easy it will all be as values rise in the future

Two Golden Rules to Remember
Finally, beware the expert. Apart from the many registered and reputable real estate agents in the country, you'll find that everybody from the taxi diver at the airport and the staff at your hotel to the students pushing property flyers at you on every street corner, is a property expert. Everybody has the best deal for you - or the latest news - or the most important advice. This is often cited by property seekers as a major source of confusion but, to counter this, there are just two simple rules to remember …

If it seems dodgy, it probably is
- and -
if it seems too good to be true, it definitely is

So, provided that you think flexibly, take advantage of the market options and opportunities, ask the key questions when selecting your agent and focus on the facts, rather than the rumours, you will be well on your way to making a successful purchase and to joining the thousands of people already enjoying their homes in Bulgaria

References:
Visit: http://www.movetobg.com for your Property Buyers Guide
and: http://movetobg.blogspot.com/p/formula-for-successful-pro... for Buying Strategies

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MovetoBG.com provides information and detailed local knowledge about Bulgaria. We offer a single source of advice and assistance for everybody visiting Bulgaria for a holiday, travel, property purchase, lifestyle change, retirement or emigration