Real estate remains one of the most profitable investments
In 2022, the value of all real estate in the world reached $ 379.7 trillion. According to the international consulting company Savills World Research, as of today, residential and commercial property, as well as land, is the greatest source of world’s wealth. A similar trend can be seen in Bulgaria – the real estate in this country continues to be an interesting investment. An analysis of the property market conducted by the Apart Estate agency demonstrates a stable demand for apartments and houses in Burgas, Nessebar, St. Vlas, Pomorie, Sozopol and other cities and resorts of the Bulgarian Black Sea region as an investment.
In 2022, the consulting agency Savills World Research implemented one of the largest studies on the profitability of investments. The results of the analysis surprised many analysts and ordinary people, since, despite all the turmoil in the real estate market and talks about the futility of this sector, it is residential and commercial premises that represent the greatest value today.
At the end of 2022, the real estate market is estimated at $ 379.7 trillion. The value of all stocks is $ 98.9 trillion, debt securities – $ 129.8 trillion, and gold – $ 12.3 trillion. Thus, more money is invested in real estate than in other assets combined.
Analyzing the global real estate market, one can see that 76% of the property market is made up of the residential property sector – flats, studio apartments, houses and townhouses. The value of residential real estate in 2022 was $ 287.6 trillion. The value of commercial property is estimated at $ 50.8 trillion.
Investment packages in Bulgaria are difficult to assess, however, here, the real estate for living also makes up the largest part of the financial market. Anticipating the introduction of the euro and experiencing high inflation, Bulgarians and foreigners have been actively buying flats, studio apartments and houses by the sea, in the mountains and large cities.
Buyers believe that it is better and more profitable to buy property, even if they have to take out a loan, than to save money or purchase shares. The purchased real estate can be rented out, resold, or have a higher price if it is finished and equipped with furniture and household appliances. It also can be used for permanent residence.
Note that two years ago the average cost per square meter in Burgas was 800-1,100 euros. Today an apartment at that price can only be found in a remote neighborhood in a residential building that will be completed in 1.5-2 years. The price does not include repairs and furnishings. In 2023, a square meter’s price increased up to 1,800-2,500 euros, depending on the location and condition of the apartment.
A simple calculation allows you to identify an estimated profit for an apartment bought in Burgas in 2021 and sold in 2023. For example, a one-bedroom apartment of 60 sq. m in a new living building in the Lazur neighborhood was bought for 48 thous. euros, this year it can be sold for at least 80 thous. euros. The benefit is 66%.
A similar picture can be observed in Sunny Beach and other resort towns in the southern Black Sea region. In 2020-2021, a studio apartment could be bought for 14-16 thousand euros, and a one-bedroom apartment in the luxurious Fort Noks gated community – for 24 thousand euros. Today, the same studio apartment costs about 30-35 thousand euros. Prices for one-bedroom apartments start from 48 thousand euros. In this case, the benefit is about 100%.
It is worth noting that due to the lockdown and recent economic and political turmoil, the focus of the real estate market has been shifted. Previously the key segment was composed of studio apartments and flats, while houses and land plots were not so much demanded. In 2022-2023, the picture has changed. Today it is difficult to buy a house, cottage or land in the Burgas region. Buyers are actively interested in this type of real estate, despite the significant price increase.
The Apart Estate agency recommends purchasing property in Burgas and by the sea in Nessebar, Sozopol, Pomorie, in the resorts of Elenite and Sunny Beach. Apartments, studio apartments, cottages are a profitable investment that will allow you to save and increase your savings. You will find the best offers in our catalog on the website or by calling us by phone.