Tourism Fuels Buy-to-Lets Success in Bulgaria
Business | October 24, 2006, TuesdayBuy-to-lets in Bulgaria are gaining ground as tourism levels reach an all-time high, real estate experts comment.
"The tourism boom is having a knock-on effect on the buy-to-let market," says Quest Bulgaria, English language monthly magazine about Bulgaria and Bulgarian property.
A three bed-roomed coastal villa now enjoys an average rental price of GBP 550 per week giving a gross income of GBP 5,500 a year if it is rented out for a ten-week period. A rural three-bed-room villa fetches an average GBP 350 a week; a city or coastal apartment GBP 250.
Experts comment that there is a genuine demand in Bulgaria for good rental properties in the right location, but buyers need to be realistic about the rental returns they want and can achieve. A 5% return is realistic, according to them.
Buyers are spreading their risks too. One agent has reported that one in every 12 purchases in the second quarter of 2006 was for more than one apartment - a 107% increase on the previous quarter.
"In the past, people just set any old price they came up with and hoped for the best. Now owners are much more savvy on rental price and consequently get more bookings," says Richard Slater from Pride Property Management in Varna.
"Tourists are looking for quality properties to rent and high quality three-bed-roomed villas with a pool are booked pretty solid. Apartments in resorts have not done as well as they cannot compete with the tour agents," he adds.
"The tourism boom is having a knock-on effect on the buy-to-let market," says Quest Bulgaria, English language monthly magazine about Bulgaria and Bulgarian property.
A three bed-roomed coastal villa now enjoys an average rental price of GBP 550 per week giving a gross income of GBP 5,500 a year if it is rented out for a ten-week period. A rural three-bed-room villa fetches an average GBP 350 a week; a city or coastal apartment GBP 250.
Experts comment that there is a genuine demand in Bulgaria for good rental properties in the right location, but buyers need to be realistic about the rental returns they want and can achieve. A 5% return is realistic, according to them.
Buyers are spreading their risks too. One agent has reported that one in every 12 purchases in the second quarter of 2006 was for more than one apartment - a 107% increase on the previous quarter.
"In the past, people just set any old price they came up with and hoped for the best. Now owners are much more savvy on rental price and consequently get more bookings," says Richard Slater from Pride Property Management in Varna.
"Tourists are looking for quality properties to rent and high quality three-bed-roomed villas with a pool are booked pretty solid. Apartments in resorts have not done as well as they cannot compete with the tour agents," he adds.
» Subscribe to receive alerts by email for any of these keywords.
Share:
