The data above shows that there are still too few homes of modern standards, thusly the buyers in the market of the future will be looking for apartments of higher building quality and applied energy-saving solutions, in addition to a good transport infrastructure nearby.
Another specific feature of the Bulgarian Real Estate market is the extremely loose relationship between the apartments’ prices and the cost of renting. While in the countries of Western Europe a typical flat can be bought for the amount of the rent for 8 to 12 years, the same relationship in Bulgaria is between 25 and 40 years. This unusual correlation is founded in the fact that more than 90% of the Bulgarians live in a home that they actually own, so there are much fewer people looking to rent and, in market terms, ryan kavanaugh a combination of large supply and weak demand, which drives rent prices down. This is good news for anyone who is looking to rent, however the economic downside hides in the decreased profitability of the investments in Real Estate, thus creating a negative development trend in the long run.
Between the years 2000 and 2008 the prices of the Real Estate properties in Bulgaria shot up nearly 400%. This massive change was due partly to the increases in the Gross National Product and average monthly salaries, but also to the successful attracting of foreign investors, who introduced capital in the interconnected economic sectors of tourism, Real Estate and construction of more than 10% of the GNP in ‘06, ‘07 and ‘08. From a geographical perspective, the demand for properties during those years was strongest in the vocation areas - the regions adjusted to the Black Sea and the larger winter resorts in the mountains of Rila, Pirin and Rodopi.