New trend in the real estate market in Bulgaria: more and more young people prefer to rent apartments than to purchase them
Many consulting agencies, including the leading international company Colliers International, note a new trend in the property market – an increase in demand for rentals and a decrease of an interest in buying apartments and houses. The trend is most obvious in the Western Europe; however, Apart Estate experts note it in Bulgaria as well. It is especially relevant among young people up to 30-35 years old, i.e. the most active and solvent part of the population.
Features of the rental real estate market in Bulgaria
These days, real estate agencies in Burgas, Varna, Sofia and other cities in Bulgaria report receiving more and more requests from people interested in rental. According to the Apart Estate statistics, these requests are quite different from those that were received earlier.
First of all, we note that people of different ages are looking for real estate for rent today. This includes pensioners, which almost never happened before. Wishing to see the world, to live by the sea in Burgas, Ravda or Sozopol, they leave their homes and sell apartments and rent houses or flats in Bulgaria.
There are many young people among those looking for rental properties. Graduates of schools and universities move to larger cities in search of better education and work. Many continue to rent apartments, even when they get married. By this time, they usually move into larger flats. The bottom line, however, is that if earlier the goal of any family was to buy an apartment or a house, now many are satisfied with rental options.
There is a high demand for rental of all kinds of real estate. These are small unfurnished studio apartments in new living buildings, one- and two-bedroom apartments with furniture, as well as penthouses with sea views. Families with children are interested in townhouses in Burgas, St. Vlas, cottages with yards and gardens in villages near the cities.
Many people rent real estate for a long time and live in apartments for several years. Others are interested in short-term rental options.
Reasons for high interest in renting
Apart Estate experts believe that such changes of the real estate market are connected with several reasons:
- The constant rise in prices for apartments and houses. According to statistics, real estate prices in large cities over the past 7 years have increased by 60-110%. A studio apartment in a new living building in Burgas, which in 2016 could be bought for 18 thousand euros, in 2023 costs 28-35 thousand euros. Prices for one-bedroom apartments crossed the mark of 50 thousand euros, and for two-bedroom apartments - 100 thousand euros. Premium real estate with sea views or in the center of a major city costs up to 3 million euros these days.
- The recent years’ events have had a powerful impact on banking policy. Mortgage and loans’ interest rates have grown considerably, and the bank requirements for customers have become tougher.
- Most developers provide interest-free payment terms only for the period of construction until Act 15 is received. So, the new property gets ready in just around 2 years, and it is very difficult for buyers to raise the required amount in such a short time.
- Construction of new living buildings is projected in remote areas or on some small pieces of vacant land in already densely built-up areas of the city. People looking for a comfortable place are not satisfied with such options. Many dream of living close to the working place or a school and want to use the already established and convenient infrastructure.
Active people are ready to move when they get a new and better-paid job. In this case, the real estate they own turns into a burden. It is much easier to just rent a flat and be able to move to any city in Bulgaria or the world.
Rental is becoming an increasingly significant trend in the modern real estate market. Apart Estate offers to buy an apartment in Burgas, Nessebar, St. Vlas and other cities in Bulgaria to receive regular income from renting out studio and other types of apartments. Our catalogs contain very good offers for flats and houses by the sea, budget apartments and premium real estate.
Also read: "Where to buy an apartment in Bulgaria to rent it out profitably”