Bulgaria: Whole Districts for Sale along Black Sea Coast

Business | January 6, 2021, Wednesday // 10:37
Bulgaria: Bulgaria: Whole Districts for Sale along Black Sea Coast

Brokers in the Black Sea city of Burgas report mass sales of apartments and retail outlets by the sea. Most of the listings for sale are by Russian owners, who years ago bought homes on the Black Sea coast, Nova TV reported.

Burgas saw in the new year with quite a number of closed outlets that are for sale or rent. In the seaside city there are more than 15 listings of iconic sites in the center – among them a piano bar, restaurants until recently working, cafes, sweetshops. Experts of the guild expect that private bailiffs will put for sale hotels and even a private clinic in Sunny Beach resort because of bankruptcies.

"The sales of retail outlets, hotels and restaurants including, are definitely on the rise", says broker Nikolina Dimitrova.

However, there are no buyers for these sites, industry reports. The Russians who bought properties on the Black Sea coast are now selling their homes en masse. Their withdrawal, however, is not because of the coronavirus, but for economic reasons, brokers say.

"Some of these people took loans at home to buy here. And when you calculate the loan’s worth through ruble-euro ratio it becomes unprofitable. And Russians are somewhat deluded thinking that with these apartments here they will be able to profit", says Petya Simeonova, resident of Pomorie.

Nearly 90% of the apartments are currently locked and are for sale, and a probable reason for the ebb besides the lockdown is the collapse of the Russian ruble.

"Over 5,000 apartments were purchased by Russian citizens, but in this situation an ebb is evident as the Russian citizens are already announcing their apartments for sale. But more importantly, there is interest from Bulgarians who want to buy property in Pomorie, because the town, apart from the sea, sun and sand beaches, has something else that you cannot find anywhere else, it is the healing mud", says Mayor of Pomorie Ivan Alexiev.

However,while Russians are withdrawing from the real estate market, Bulgarians with savings invest in properties with confidence. Experts in the real estate industry see a serious interest in buying spacious housing in urban areas and even more in land plots by the sea near the city.

"On the Black Sea coast I would say that Burgas is the most popular city among prospective buyers. This is the city that is in demand almost everywhere. They may be foreigners, they may be from Haskovo, they may be from Yambol from wherever they are, the city is nice, it is advantageously located between the southern and northern Black Sea coasts. So, I would say that if we look at the Black Sea coast the greatest demand is for Burgas", says broker Velina Vasileva.

Bulgaria‘s expected entry into the Euro zone has prompted many Bulgarians to invest precisely in property. Although 80% of home purchases are with a mortgage loan the interest is still high.

"The demand was mainly for realty in Sozopol, but we do not rule out the transactions that took place in Pomorie or in Nessebar," brokers say.

"Some make the investment to rent out their new property in the future. Because property is such a commodity that never loses its value, same as gold," the experts say.

They also noted the lack of Britons, who traditionally bought rural properties in Strandzha. In recent months, only one German citizen has purchased a house in Sozopol. But the interest of people from Turkey, whose desire to buy property in Europe is mostly related to business, makes special impression.

Many Bulgarians are seriously concerned about devaluation of their money and prefer to put their savings in real estates.

 

 

 

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Tags: Bulgaria, realty market, Black Sea
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