Bulgarian property market in 2020. Dynamics of prices and sales

More than half of 2020 has passed by. For the Bulgarian real estate market, the year started with an increase; it promised growth of prices, sales, and more profitable deals. However, the pandemic and the introduction of first a state of emergency, and then an epidemiological emergency clearly demonstrated that plans and forecasts most often have nothing to do with reality.

During the first two months of 2020, one could observe a high interest in apartments, houses, and townhouses in Bulgaria. Real estate in the Black sea and downhill ski resorts was in high demand. Most of the buyers were citizens of Germany, Great Britain, Poland, Ukraine, Israel, and Bulgaria. Flats in new buildings and in the secondary market turned out to be in equal demand. 

However, in March-April 2020, property sales stopped as it became impossible to move freely between countries and even within one state. Single deals were completed in compliance with safety measures or remotely, based on powers of attorneys. We saw an increased interest in long-term rentals and purchases of cottages and townhouses. 

The revival of the property market began only in May. From this time on, the trend of property sales and the behavior of buyers and sellers can be traced clearly. 

The dynamics of changes in the number of deals are as follows:

• The leader of the fall is Nessebar. One sees a 41% drop in the real estate market. The main reason is the reduction of people who want to buy an apartment in Sunny Beach. The request for apartments without a maintenance fee in Nessebar remains at a high level. 
• The second place in terms of a sales drop belongs to a resort town Byala. The demand fell down to 19%.
• In third place is the city of Pomorie, so much beloved by citizens of Russia, Ukraine, and Kazakhstan. Pensioners and families used to buy property in Pomorie with great pleasure. The current drop is 16%. 

Despite the obvious negative trend, the number of sales has increased in some parts of Bulgaria. 

Sales growth is:

• Varna – 1.5%.
• Kavarna – 5%.
• Balchik – 7%.
• Tsarevo – 11%.

Among the buyers, there are mainly citizens of Bulgaria and Germany. Most of the sellers are Russians.

Many potential purchasers expect deep discounts. Despite the difficult economic and social conditions, the cost per square meter has not reduced. It is only apartments with a maintenance fee that are available at cheap prices. Property in regular residential buildings, cottages, land, as many sellers say, “do not ask for food and drink”, therefore prices for such real restate do not fall. Deep discounts can be received only in case of urgent transactions.