Real Estate & Mortgage News in Bulgaria from Propertyshowrooms.com

Bulgaria property prices fall in 2011

Thu, 26 Jan 2012 00:00:00 GMT

New research has revealed the value of Bulgarian property fell by between five and ten per cent in 2011, compared to 2010.

Propertywire reported on the data, which was gathered from brokers operating in the nation, noting that the situation is not expected to change over the course of the next 12 months.

Operations director at a Bulgarian real estate firm Polina Stoikova told the publication that the greatest demand is for properties in a low price bracket that are located in major cities.

Bansko, a ski resort, is one of the places that has experienced some of the biggest falls, with real estate values there sliding by 25 per cent during 2011, the news provider revealed.

In addition, an article in Focus earlier this month cited a study published by Presa Daily, which found home loans in Bulgaria have become more accessible.

According to the research, last year it was possible to obtain finance of between 80 per cent and 90 per cent of a residential property's value, while interest rates on mortgages have fallen and are now close to their 2008 level.

Increased activity reported in Bulgarian real estate

Fri, 12 Aug 2011 00:00:00 GMT

There has been a significant rise in the number of new mortgages issued in Bulgaria, it has been revealed.

According to research from Credit Center, a consultancy based in Sofia, the number of home loans awarded in the second quarter of the year was 18 per cent higher than in the first three months of 2011, the Sofia News Agency reported.

Chief executive officer of Credit Center Tihomir Toshev told the press organisation that this bodes well for the Bulgarian real estate sector.

He explained that buyers and sellers have been active in all areas of the market, although the most popular kind of property is currently a two-bedroom apartment.

Mr Toshev added that "receiving credit is becoming easier and easier", which has enabled more people to purchase a home in Bulgaria.

Last month, the Sofia Echo noted that there was a 27 per cent annual rise in the number of real estate transactions in the country during the first half of the year.

Property auctions double in Bulgaria

Wed, 16 Mar 2011 00:00:00 GMT

The number of property auctions taking place in Bulgaria during the first few months of 2011 was double that of a year previous, it has been reported.

Data provided by the Bulgarian Chamber of Private Enforcement Agents (BCPEA) and targ.bg shows that numbers hit between 1,500 and 1,600 in January and February this year.

This is compared to an average of between 700 and 800 a month in 2010, the Sofia Echo reports.

The news could result in lower prices for a number of individuals looking to buy property in Bulgaria.

According to agents, the increase in property auctions was attributed to the growth of non-performing mortgage loans, as well as to the accumulation of old tenders that found no buyers.

Elsewhere, the news provider reports that the number of residential and administrative building permits issued in Bulgaria during the final quarter of 2010 decreased.

Municipal authorities granted 1,152 housing permits between October and December 2010, down 12.1 per cent against the previous quarter, data from the National Statistics Institute revealed.

More home loans available to Bulgarian property investors

Fri, 16 Jul 2010 00:00:00 GMT

Real estate investors are set to be lured back to Bulgaria after it was revealed that more loans will be made available to buyers.

Following the departure of many purchasers at the height of the global economic crisis, banks are now targeting potential buyers to tempt them back to the country.

However, rather than British investors returning in their flocks, a large number of Russian buyers are now capitalising on the current market conditions.

"The great demand for real estate, which initially came from the UK and other English speaking countries, is being steadily replaced by Russian speakers," confirmed municipal mayor Avren Todorov.

The news may be of interest to those looking at homes for sale in Silistra, with the region a major cultural, industrial and educational centre located in the north-eastern area of the country.

Meanwhile, according to a recent report by Colliers International, prices in the Bulgarian capital of Sofia have continued to fall in 2010, with an annual decline of 17 per cent experienced.

Number of mortgage loans reaches 130 000 in June 2008

Thu, 11 Sep 2008 00:00:00 GMT

The mortgage portfolio of Bulgarian banks reached 130 870 loans at the end of June 2008, an increase of 32 228 over the same month of the previous year, data of the central bank showed. The average size of a mortgage loan surged to 51 692 leva, compared to 44 750 levs in June 2007. Even though interest rates have risen over the past 12 months, mortgage lending to individuals and households has increased by 50 per...

Bulgarian slowdown 'could be temporary'

Wed, 20 Aug 2008 00:00:00 GMT

The recent slowdown in the Bulgarian housing market may only be a temporary lull, experts have suggested.

Foreign Property Buyer said issues such as overpriced houses, unfavourable credit terms and supply exceeding demand have fuelled a drop in the rate of house price inflation.

However, the website stated that some analysts believe the market is likely to pick up again at some point in the future.

This is because investors from overseas are still being drawn to Bulgaria by factors such as its strong buy-to-let market and affordable prices.

"Popular holiday resorts and city locations [are] still attracting strong rental yields and strong demand from investors," Foreign Property Buyer said.

The website added that major cities such as Sofia and Varna could still be "worth a look".

This comes after Bulgaria was flagged up as a good market to consider by Aston Lloyd, which said property values are relatively affordable when compared with many other markets.

British buyers praise Bulgarian purchase

Tue, 12 Aug 2008 00:00:00 GMT

Bulgaria has been praised by two second home buyers for offering both lifestyle and financial attractions.

Scott and Lisa Bain recently paid £43,000 for a one-bedroom apartment in the eastern European country.

The couple, from Dunfermline in Fife, told the Sunday Mail that they plan to use it both as a holiday home and as an investment.

Mr and Mrs Bain stand to collect healthy returns by letting out their residence to holidaymakers, many of whom come to enjoy its ski slopes during the winter months.

Commenting on the purchase, Mr Bain said: "It suits us perfectly.

"We work full time and don't have time to manage the property."

Bulgaria, which joined the European Union in early 2007, was recently found to have seen the largest rate of house price inflation in the world.

The Global Property Guide revealed that last year, property values increased at a higher rate than in any other country.

Bulgarian banks go cold on loans for overdeveloped resorts consultants

Mon, 30 Jun 2008 00:00:00 GMT

Bulgarian banks have started introducing stricter requirements on applicants seeking loans to buy property in Bulgarias bigger resorts, including Bansko and Slunchev Bryag Sunny Beach, over worries that these locations faced overdevelopment, credit consultants said, as quoted by investor.bg on June 30.Foreign nationals interested in buying property in Bulgaria and applying for loans from local banks were increasingly being asked to show their credit history for a period of up to six years, the website quoted Tanya Yakimova from Bulgarian Home Loans, a British consultancy firm that focuses on advising foreigners.

Bulgarian mortgages "attractive" to foreign investors

Mon, 18 Jun 2007 00:00:00 GMT

The Bulgarian mortgage market is becoming increasingly active with interest from European investors, research has found.

Published by the Sofia Echo, a survey by MKB Unionbank claimed to reveal growing interest in the Bulgarian real estate market from UK citizens, in addition to rising demand from European countries such as Germany and Spain.

The bank launched a mortgage service to foreign citizens this month with MKBU now financing purchases of houses and apartments.

Commenting, MKBU managing board chairperson Maria Ilieva said a stable "trend for higher prices" and an improvement in the "quality of Bulgarian property" was the reason why the company decided to start mortgage lending to foreigners.

"Bearing in mind the already strong demand in the country, I expect dynamic development in the business," Ms Ilieva told Focus News.

In related news, an expert has warned officials and local businesses in Bulgaria to avoid the overdevelopment mistakes made in some parts of Spain.

Writing for The Guardian this month, documentary maker Nikolai Chavdarov called for a balance between profit making and urban and rural development.

First-time buyers 'prefer European market'

Mon, 19 Mar 2007 00:00:00 GMT

A new generation of first-time buyers are buying properties in Europe as a consequence of rising house prices in the UK, according to a Sunday newspaper.

Overseas mortgage specialist Conti Financial Services told the Observer that there is growing trend for new buyers to shun the UK market and look overseas instead.

This has become particularly prevalent since several eastern European nations joined the EU in recent years.

Bulgaria, Turkey and northern France are the current property hotspots, said Conti.

"You can buy a one or two bedroom apartment for around £40,000 in Turkey or £60,000 in Bulgaria and you can still get houses for £60,000 to £80,000 in northern France," said Simon Conn, managing director of Conti.

According to BuyAssociation, it is highly likely that market activity in Bulgaria will outdo many of its European neighbours, mainly as a result of its accession to the EU.

"Bulgaria has had a huge amount of press and public interest in overseas property," the company stated.

Bulgaria investors 'should use UK finance'

Tue, 13 Mar 2007 00:00:00 GMT

Investors hoping to buy a property in Bulgaria should consider obtaining a mortgage in the UK in order to get a better rate, a property firm has stated.

Knight International said that although it is possible to get a Bulgarian mortgage, it is not easy to find a competitively-priced deal.

Director Jon Hill said that investors buying off-plan will not be able to get a mortgage from a Bulgarian bank, at least not until the property is at roof level.

This is understandable, he said, because that the lender is merely safeguarding their loan.

However, investors would probably be better off releasing equity in a UK property, "which is easy to actually do and at a better rate".

"That is generally how we recommend people do it," he added.

A recent study by Self-Catering-Breaks found that 20 per cent of overseas property investors prefer a European rather than a British mortgage provider, compared with six per cent who said the opposite.