The luxury real estate market in Bulgaria has recovered 70% of its volume. Did prices fall?

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The activity on the luxury real estate market in June returned to almost 70% of its volumes compared to the levels before the COVID crisis with expectations for a full recovery by the end of the year, according to data from the luxury real estate consulting company Unique Estates.

The luxury segment in our country is more conservative and closed, which largely protects it from significant global influences, say the company’s experts. After the period of the initial stupor, followed by a sharp decline in views and the number of transactions, passed, the market dynamics normalized.

“Activity around the world is recovering smoothly, with the pandemic becoming an incentive to innovate in real estate almost everywhere. What distinguishes the segment in our country is the lack of external customers and international players with significant weight.The main driver here is domestic consumption.International buyers are constantly moving the market, attracting capital to this and other sectors of life in the country, but we on “We are working on transactions of Bulgarians abroad rather than the other way around,” commented Vessela Ilieva, managing partner at Unique Estates.

The company reports an increase in inquiries and deals with houses – a segment that is usually characterized by more supply and less demand. In recent months, however, due to the extraordinary conditions, buyers who traditionally choose an apartment for living, are already interested in offering houses at similar prices – between 400,000 and 600,000 euros. We are mainly looking for newly built homes, furnished with a yard, and as areas, in addition to Boyana and Dragalevtsi, Bankya and Gorna Banya can also be distinguished.

The period of the state of emergency has enabled wealthier clients to devote the necessary time and attention to the purchase of a property, as a result of which many postponed transactions have been finalized over the past month, experts say.

Medium-term rental of residential properties – on a monthly or weekly basis, is still a novelty for the Bulgarian market, but experts from Unique Estates see serious potential in developing such a practice. On the one hand, it allows a family living in an apartment in the center, for example, to rent a house in Boyana for the summer, where they will have their own pool and faster access to the mountains. On the other hand, the owners of these properties can get higher returns.

Nikola Stoyanov: The prices of luxury properties in Bulgaria will grow

Demand remains unchanged until the end of 2021, but deals may be less, the president of Barnes Bulgaria told money.bg

Did prices fall?

Despite rumors of falling prices, this was not reported. Luxury homeowners usually do not have an urgent need to sell and can afford to wait. This gives additional sustainability to this segment and long-term investment security. If a person owns a luxury property, it is very difficult for him to lose the money invested in it, even during a crisis, experts say.

The report by Luxury Portfolio International shows that in these uncertain times, some buyers, as well as investors, feel more comfortable with reserve assets in real estate than other investment instruments. The real estate portfolio, presented through the company’s platform, includes the largest selection of homes worth over $ 1 million in the world, such as over 85% of all offered under the brand logo. In 2019, the deals concluded worldwide exceed 250 billion dollars.

What were the property prices in Sofia in the worst year after the crisis?

What were the property prices in Sofia in the worst year after the crisis?

Or the time when there were still homes for 500 euros per sq.m.

Most sought after areas

During the state of emergency, interest in two areas forgotten in recent years – Bankya and Bistritsa – resumed. Although a little further away, they attract buyers with fresh air and good infrastructure. Inquiries for houses have so far been limited to Boyana, Dragalevtsi and Simeonovo, but now Pancharevo and Kambanite are being added.

“Traditionally sought after are the prestigious locations – Doctor’s Garden, Lozenets, East, Sunrise. In these neighborhoods interest is stable and property prices are unchanged. The area around the mall Paradise is becoming more attractive. Thanks to investor interest and vacant land for construction, the region is quickly ennobled, has good transport and is becoming a mixed-use area – for living, working and having fun, “explains Vessela Ilieva.

How did the corona crisis change the requirements for the properties in Sofia?

How did the corona crisis change the requirements for the properties in Sofia?

Tano Neychev, co-founder of Contract City, in front of Money.bg on Bulgaria ON AIR

Forecasts

The company expects the market to be characterized by stable demand and stable prices in the coming months. The volume of transactions will gradually grow, and in the autumn it is possible that their levels will fully recover. “Even if there is a second wave of coronavirus, all market participants are much better prepared than the beginning of the COVID crisis. We have taken the necessary measures to respond quickly and adequately to the changing environment to continue working,” said Vessela Ilieva. .

The situation on European markets

The situation in most European markets has improved with the adoption of the “conditional plan” of the United Kingdom, the “emergency brake if necessary” in Germany, the “red zones” in France and a mixture of phased precautions such as limiting the number of people at group gatherings. . In this respect, the countries of Europe, the Middle East and Africa are almost on par with those of the Asia-Pacific region in terms of easing restrictions and progress towards full recovery.



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