Property market in Varna is more expensive and predictable
22 Nov 2017, STONEHARD
The property market in Varna has completely changed to a steady growth. After the nostalgia for 2007-2008, when there was a boom in holiday buyings by foreign tourists - mostly Russian and British, then the subsequent crisis of 2014-2015, there is now a steady increase of various clients for all neighborhoods of the city. This is explained by drastic change in the interest in any bank for mortgages which is at less than 4%. Enhanced trade in farmland at good prices in the region also greatly favors this change. Clients are people from small settlements who migrate to settle permanently in the district center. The interest in deals at prices of EUR 100,000 – 120,000 has been significantly increased, as opposed to last year when these levels were up to EUR 70,000.
The news on the Varna market, however, is that, while before the main driving force of the trade were Russian citizens seeking expensive housing, now about 95% of the clients of the real estate agencies, even in the vacation sector, are mainly Bulgarians.
The main criterion is the location of the property, not its size. Even in the central districts, deals are made up to 2000 EUR per sq.m.
When choosing a home, buyers have more serious requirements for the materials, the quality of the works, the availability of parking space and the good common areas.
Three-room flats in the areas with easy and fast communication to the city center are already offering about 30% higher prices.
Statistics shows the number of green deals made for new buildings continues to grow as well. Such a deal in dark green indicates the reservation of a property before the building permit, still in the design phase. Customers can adapt the units to their own taste, which is not possible at a later stage.
This is the most logical explanation for the fact that the demand for building plots has already returned to the levels in 2008. Areas are being sought not only in the central part of Varna.
The desired plots are those that allow for a built-up area of 2-3 thousand square meters.
The profile of customers looking for green investment shows that the decisive factor in the deal is the quality, the business history of the construction company and the way of payment.
The statistics show that Briz quarter, which is on the way to the Golden Sands resort and is close to the Sea Garden, is becoming more and more attractive.
Trend in the last year is also the return of confidence in residential properties as an investment opportunity In Varna over 70-80% of the investment deals become apartments, as they can be easily rented in contrast to houses, shops or agricultural land.
Bulgarian and foreign buyers already have almost equal demands on quality and price of their properties with an increasingly rational approach to their location selection.
Supply is still lower than demand, which drives prices up. But this will not last long. Residential buildings, which are to be completed in the next one or two years, are constantly increasing and this will inevitably lead to the moment when the supply will exceed the demand.