The market of holiday properties tends to be most attractive in long term perspectives

Galina Stoyanova is the Manager of the estate agency Bulgarian Real Estate Ltd successfully dealing in properties in Bulgaria and offering a wide range of services related to the building, furnishing, servicing, and overall management of properties. It is one of the first companies well established in the development of property management and is proving more and more trustworthy among both foreign investors and building contractors.

Mrs Stoyanova, how long have you been monitoring the developments on the Bulgarian real estate market?

For about 20 years. The real estate market in Bulgaria has passed through quite a few different phases, and so have the estate agents, who are changing their methods of work and their approaches.

What are the greatest advantages and disadvantages of the market in this country?

Bulgaria has a number of advantages, but the low property price is the best thing. Besides,
what attracts our foreign clients is the excellent climate together with wonderful seaside and mountain resorts. These properties are of a quality which is not in the least inferior to the world standards, and yet their prices are considerably les expensive compared to the average selling prices in Europe. The demand for properties in this country is increasing continuously, and so are the construction and supply, which brings to attracting investors from around the world and to rise in prices at the same time.

What, in your opinion, is the first measure that should be taken so that Bulgaria will be able to improve its image among investors?

The first step Bulgaria should make is to join the European economic community, which later will facilitate the process of buying property in Bulgaria. Meanwhile, certain Bulgarian laws should be changed accordingly in unison with the European ones, so that foreign investment will be allowed through appropriate economic and banking policies, and without damaging Bulgaria’s interests.

Which do you consider to be the most attractive segment of the real estate market in medium terms?

I think that the market of holiday properties will benefit mostly in medium to long terms. This is due to the fact that foreign owners of properties in Bulgaria will return to them again and again keeping the interest in our country steady, so that new potential buyers can appear, as a result of the affirmative mouth-to-ear information about this country. Their properties will be managed by local firms and tenants often become potential buyers. The tourist industry is of utmost importance to the economy of this country and the government tend to be focusing its attention on it more and more closely.

How do the real estate markets in Bulgaria and Spain compare? What is the biggest difference between them? What is the future of each one?

The real estate market in Spain is well developed and easy to finance, and all the year round numerous regular and cheap flights are readily available from and to Britain. Because journeys only take 2 hours, you can often travel to and back, and, apart from this, the sun shines upon the coasts all year round. Spain is a famous destination, but the prices of both properties and services are much higher. Bulgaria is a beautiful, green and sunny country with excellent weather conditions, fashionable ski resorts, magnificent beaches, unspoilt nature, and far cheaper properties. Now it is among the destinations foreign investors are mostly interested in at international exhibitions all over the world.

How do you expect the real estate market will be affected by the accession of Bulgaria to the EU?

The accession of Bulgaria to the EU in the near future will have really positive effects; obviously, it will help Bulgaria build up a better trust among the other member-countries, improve its image, and boost sales, and financing particularly. I expect that the improved economic situation will result in quality tourist services and stronger competition. These developments, therefore, will be beneficial to property owners in Bulgaria and will increase the interest in it among more and more countries.

What are some of the investment and business plans and expectations of your clients and how does your company serve them?

Our clients are very different because they fall within a wide variety of market segments and we try to serve them adequately through our real estate websites. However, the better part of them tend to buy and invest in real estate and expect a quick and risk-free return on their investment. This is the segment of clients looking for apartments and villas in developed tourist locations, and our company manages their properties and ensures year round bookings. Business properties are equally important to our clients and we do our best not only to give great offers but further manage various businesses too. Our clients fully trust our expertise and experience for we do business successfully in the tourist industry and agriculture to fulfill
goals set by them.

What kind of investment attracts foreigners the most?

According to our company statistics, 40% of our clients have bought properties at the seaside or some 20-minute drive from the sea. These include all kind of properties: apartments, plots, and villas. There is a steady interest in ski resorts as well and about 30% of our sales come from these locations. The remaining 30% of sold properties account for large plots of land for business purposes and rural properties, with a tendency to keep the interest steady, due to the low prices and freshness of the countryside.

What kind of property attracts most investors?

Most investors prefer to have a two-bedroom apartment within a compound building sharing a swimming-pool. Therefore, investors are mainly after apartments with two bedrooms, a nice balcony, an equipped kitchen, and a bathroom, and a shared swimming- pool. Another thing that matters is the demand for a beautiful view and near distance to a beach.

How do you advertise your activities and how can potential buyers learn about your company and the services it can offer?

Our Company Bulgarian Real Estate Ltd owns over 40 websites to advertise and attract most buyers. Each spring and autumn we advertise our company at international exhibitions and fairs for real estate properties in different countries all over the world where we are able to find our clients, friends and partners and start and continuously develop successful business relations. We promote investment opportunities in holiday properties in Bulgaria assuring investors that they can rely on our company competence and expertise for their undisturbed and enjoyable experiences in Bulgaria.

Is there a particular difficulty faced by foreign investors in their search for their property?  Which are the main factors hindering investments in Bulgaria?

The major factors of great importance which make it really difficult for potential buyers is the lack of a Bulgarian company, whose particular scope of activity would be to verify and register the ownership of land as well as the restricted access to mortgages for foreign investors, together with the high interest rates.

How would you explain the fact that the British form the largest group of foreign investors on the Bulgarian real estate market?

This fact is really interesting because in the past the ties between Britain and Bulgaria were insignificant. I think two factors have brought to today’s favourable developments. Firstly, about 10 years ago Bulgaria started to become popular with the British as a holiday destination who were attracted by the cheap holiday packages. A few years later when they got to know the country they began considering buying a holiday home in Bulgaria and many did so. Initially, they did not bother to see it as a business investment; they simply loved the weather, the sights, and the local people. The demand was growing and so prices went up. I think this tendency will at least go on for the next 2 or 3 years.

What is Bulgaria’s main advantage as a holiday destination and what exactly draws foreign investors to Bulgaria?

One important reason is the warm and sunny weather in Bulgaria, which greatly appeals to foreigners. As you know, in Britain the weather conditions are nice, warm and sunny for just about 2 months in July and August, so the people start look for a really fine weather in countries further south. In this sense, seaside resorts like Sunny Beach and Golden Sands are ideal for them. Of course, there are winter resorts too, but I think that the Black Sea Coast will keep the biggest market share because the sunny weather at the seaside dominates over the lengthier May to October period. Another good reason is the steady growth of prices influenced by the increased number of British investors.

They say there is a surplus of supply, especially at the seaside. What do you think?

Yes, this is really the trend over the last couple of years and now there are numerous houses, hotels and other buildings under construction not only at the seaside but also at the ski resorts. Intensive building is being carried out at the sides of the large lakes and dams too, which has resulted in a huge increase in offers for sale. This, together with the higher prices, of course, slows down the process of closing sales and capital return for new investments. Until 2 or 3 years ago this was not the situation and if the tendency is kept, it will have an unfavourable effect on the demand for properties in Bulgaria, and on prices too.