Evaluating Current Situation And Development Trends For The Bulgarian Real Estate Market In 2008

Nowadays, the Bulgarian real estate market is in asecond. Oftentimes, the second floor could be
sufficiently balanced condition. There are a stabledescribed as attic because of the type of the roof.
interest and demand, and on the other handThe roof itself is either classic type of wooden
sufficient supply on behalf of local and foreignbeams with hydro insulation, ceramic or bitumen tiles,
investors to meet this demand. The price increase isor a contemporary "flat" type with thermal and hydro
moderate, without sharp jumps, as the indicationsinsulation and finishing exterior bituminous membrane.
show about 50% annually; in other words exceptExterior 4-5 cm façade thermal insulation using
well-balanced, the real estate market is in a stablea silicate plaster and paint. It is common to see
growth period. The sudden price jumps, thehouses with a stone base up to the level of the
stagnation, the lack of new construction and the lackbasement premises and garages. Furthermore, if
of demand remain in the times past. As a matter ofhouses are built in the style of the Bulgarian national
fact, the demand has always been there, but it usedrevival, their particular features are the oriel and the
to be either avalanche-like or it was turning into apartial or complete wooden planking of the second
small flow and therefore usually the buyers could notand third floors.
find that what they were looking for. Things areFrequently the roof of these houses is deliberately
different now. There are many sites, available inmade of old Turkish-style tiles and the windows are
varied price ranges, at different distance from thedouble-glazed of stained glass or with window
sea, which in itself influences the prices. On thegrating, in order to thereby invariably stick to the
market the sites differ by their area and planning. Tointended ancient style of the buildings. A quite
a great extent the variety refers to the apartmentscommon feature are also the working fireplaces in
and the apartment complexes. The private housesboth modern and traditional natural stone style. The
are also widely represented on the market, however,interior walls and ceilings are mostly plasterboard
the difference in the house demand compared to thefinished with mineral wool quilt provided for insulation.
apartment demand, is that no foreigner would buy anMore often in the practice the walls and ceilings are
old-construction apartment, but the demand of oldfinished with smooth gypsum joint-filling and high
houses is as stable as the demand of new houses.quality paint or with decorative plaster finish. The
Of great interest are the areas located within closesanitary premises are fully finished and fitted, including
proximity of the sea - in Bulgaria the length of theroom tiling, lighting, an electric water-heating boiler,
coastline is approximately 240 km. The resource isequipped with sanitary ware, mixer taps, showers
vast; a lot of the attractive plots with a varied-sizeand shower cabins. As the newest standard in
area, available especially in such regions, are suitableconstruction we can define the use of multi-chamber
not only for high-rise construction, but also for buildingPVC window frames available in various finishes
of private houses and villas with a magnificent seaimitating wood or simply in white colour; a regular
view and scenery.double glazing or stained glass double glazing in a few
Land properties are wanted as in the vicinities of thebase colours; also the installation of high quality
large seaside cities, such as Varna and Burgas, as ininterior and exterior doors with natural facing, modern
the area of the summer sea resorts, such as Goldenlocks and hardware; the floorings are made of high
Sands, Albena, St. Constantine and Elena, Sunnyclass laminate parquet; natural plank wood flooring or
Beach. As a general rule, the most preferred onesclassic oak patterned parquet; the water supply and
are the localities where the infrastructure is alreadysewerage mains is made of polypropylene pipes and
developed.connections, autonomous electric- and water-meters ;
Here is an interesting fact: if earlier the resortcontemporary electric units with safety fuses and
apartments were mostly bought for the purpose ofswitches.
seasonal living, thus more often now, the ownersThe equipment of the home with the most
stay living in Bulgaria all year round, go on sight-seeingnecessary communications, such as telephone,
journeys all over the country, including to theinternet and television is a must. The installation of
uppermost west regions, to enjoy the naturalelectric plugs, switches and lights on the walls and the
resources and the variety of resorts. The customerceilings is also obligatory. Often the properties allow
service enhancement in the apartment complexeshaving an original and impressive landscaping: a lawn
and the resorts in the country has proven its positiveand decorative trees, free-growing flower
effect on the buyers' choice. All sites are providedcompositions, decorative blooming bushes etc.
with all-year-round maintenance and security guarding,The contemporary market and the services of
restaurants and shops, indoor and outdoor swimmingspecialized companies provide the opportunity of
pools, gyms, bars, etc. Also very perceivable is thebuilding indoor or outdoor swimming pools and
construction quality improvement, all the more thatnon-complicated children's water rides. As far as the
Bulgaria joined the European Union and it does itsmarket nowadays offers a rich variety of price
utmost to build as good as the rest of the Europeanoptions, it is possible to install such kind of a water
countries. For instance, there are more often sitessystem with comparatively small budget. The fences
with autonomous or central systems for heating andare usually erected on the base of
cooling of the interior premises. Due to the mass andreinforced-concrete rings - the fundament of slag
progressively increasing competition in the sphere ofblocks, concrete blocks; they can be solid or made of
construction, the building companies are frequentlyspans with wooden or concrete elements with
urged to bring in their tough business progressiveopenings. Tiling elements covering the top of the
technologies, materials, engineering systems andfence could also be seen; often the entrance gate is
facilities, in order to ensure better habitabilitymassive, made of wood or iron, with modern damper
standards for the residential sites and to innovativelymechanisms to facilitate opening and closing of the
bring to life the latest scientific and technologicalwings;
achievements in the field of construction, productionAs a rule the liquidity as well as the price of the land
of building materials, and last but not least, toplots depend on their exploitability, on the availability
befittingly make use of the marketing and advertisingof panoramic view and beautiful surroundings in the
art. Also a significant trump for them is the necessityarea where the plots are located, as well as on the
of supply of such sites on the real estate market indistance to a populated area in view of the
the same price range as of the sites not particularlyprospective connection of the plots with
innovative as regards finishing.communications (electricity, water-supply and
An example could be the sites that are being built insewerage system, telephone and internet); the plot
the quite popular residential area in Varna, calledprices increase in proportion to their proximity to
Breeze. Both buildings - with high quality interior andimportant natural resources such as a sea, beach,
exterior finish, where the apartments are of theresorts; very popular among the local and foreign
same price range, but in one of the sites everypurchasers are the areas located near lakes and
apartment is planned to be equipped with the newestrivers which by the way is an incredible feature of
autonomous system for heating and cooling of thethe the southern part of the Bulgarian black sea
premises by Daikin, a Japanese manufacturer, and incoast. The method of acquisition and formalization of
the second building - the apartments will be heateda land plot or any other property in Bulgaria is quite
by regular converter air-conditioners, that is to sayeasy, starting with the reason that in Bulgaria the title
the market prices of the apartments are the same,to the land exists. If professionally organized, the
but the level of their technical equipment is different.period to purchase a real estate and formalize the
There are many examples as this one.transaction can be reduced to a minimum of a few
If we give consideration to the sites that enjoy theweeks.
highest popularity among newly arrived buyers, theWhen wisely chosen, the area for purchase of an
leading positions are taken by those complexes andapartment, a house or a land plot can determine not
small apartment buildings, which are located in theonly the comfortable vacation and lifestyle of every
prestigious panoramic areas of Varna - Bulgaria's seaone, but it also involves the golden opportunity for
capital, in regions such as Breeze, St. Constantine andquick and profitable resale of a particular real estate.
Elena (sea & spa resort in the vicinities of theOn the other hand Bulgaria is rapidly renewing its
city), Primorski Park, Galata. The apartments in thesepopularity among the Russians and the Balts not only
areas are suitable as for a seasonal summer vacation,as an interesting tourist destination but also as a
as for all year round living and business. Moreover,destination for profitable investment of capital with
there still is a quite good demand for not tooquite quick return. We can give an example by
expensive complexes in the small resort towns, suchindicating a part of the clients of our agency - Dao
as Kranevo, Byala, Nessebar - with pure nature andReal, who invested in fully finished apartments in
moderate resort activity. The rise in popularity of theVarna City during 2006 and at the end of 2007 sold
big summer resorts, such as Albena, Golden Sands,them through our direct mediation service without
St. Constantine and Elena, Sunny Beach - famousany additional costs on the apartments earning a
across Europe - and the apartment complexesprofit of 35 000 to 50 000 euro. In terms of the
located on their territory continues, all the more thatcountry's good political line - on the one hand, as a
the customer service standard in the country'scurrent EU member, Bulgaria has fulfilled all the
resorts gets continuously improved and graduallyeligibility requirements and directives for the country's
meets the requirements for a European-level service.faster joining the Schengen area, and on the other
Taking a look at the construction materials, used inhand, it implements a smart policy of development of
the building of these dwellings, we should gladlymutually beneficial foreign-economic and cultural
notice the increasing popularity of the German-maderelations with Russia - the expectations are for
15 or 30 cm red bricks, that allow mechanizedfurther development and preservation of the
application of gypsum plaster; 150 or 200 cementcountry's popularity among the Russian and EU
quality class; good exterior 4 or 5 cm polyurethanepurchasers and the investors. The topical of today is
façade thermal insulation boards;the large-scale construction of malls, department
ETALBOND-type aluminum façade panels,stores and business centers in the cities, which are
natural stone facing slabs of local or European origin;developed not only with the joint capital participation
multi-chamber PVC window framing, double glazedof both local and foreign big contractors but there
window with tinted glass in a range of colours;are also projects that are 100 % financed by funds
polished aluminum tubing and connections or stainlessof European contractors and organizations.
steel tubes for outdoor and indoor railings andThe local city authorities render complete assistance
outdoor railings for terraces and balconies; high qualityto the investors and developers for infrastructure
and Bulgarian and Spanish tiles and granitogres,development and renovation, as well as for supply of
sanitary ware and mixer taps, both regular adthe necessary powers and public utilities to the area,
designer series; high quality interior and exterior doorswhere the site is located. The fact that there is an
with natural facing; high class laminate parquet; naturalinterest and investment of western European funds
plank wood flooring or classic oak patterned parquet;in the country shows itself the increasing stability in
interior paint finishes - mainly durable innocuousthe region. The first shopping malls and business
water-based paints; water supply and seweragecenters based on the European model have already
mains of polypropylene pipes and connections;been built and are in operation, but there still is big
autonomous electric- and water-meters ;deficiency in buildings of that kind. Formerly, the
contemporary electric units with safety fuses andoffices and the small stores in Bulgaria were often
switches.situated in hasty re-fitted apartments on the first
Looking at the new construction private homes, itfloor in common residential buildings. Now the number
may be remarked that this kind of building is mostlyof such type of "offices" quickly decreases, all the
concentrated in new complexes of closed type,more that a law on their forbiddance and gradual
located either within close distance to a populatedelimination is being adopted. In general, Bulgaria can be
area, within the boundaries of small towns or villages,described as Eden for the investors, an undeveloped
near the sea or the beach, as well as in the villa areasniche market, where formerly there was nothing
of district centres such as the cities of Varna andspecial and nothing much happened, but where
Burgas.tranquility has always existed. Now it is the right time
In terms of construction, the houses are monolithic,to make and concentrate serious investments in the
brick-built, two-storey buildings: as a rule, there are aBulgarian real estates and development; and to
spacious living room with a kitchen and some auxiliaryreceive such a great profit that would be too difficult
rooms on the first floor and bedrooms on theto earn in any other European country.