Bulgarian off-plan property forms the bulk of foreign property purchases. Below is information to help decide whether or not off-plan purchase is a viable option for you.
Off-Plan Property in Bulgaria
Off-plan villas, townhouses and apartments in Bulgaria are available in all the major investment hotspots and they are particularly popular as many developers offer beneficial payment schemes. We carefully vet these schemes and work with only the most reputable and secure development companies that operate in your favoured location of Bulgaria. Off-plan payment schemes currently on offer allow you to buy property off-plan, ie. before or during construction, when the price remains low, with typical down payments of between 10% to 30% of the property value.
By the time construction is finished, prices rise due to market forces and the greater general appeal of a completely finished property that is ready to move into. Investors can therefore sell the property on to another property purchaser and, in doing so, enjoy some excellent annual returns whilst never having paid the full purchase price. Depending on the down-payment and speed of construction, annual returns normally reach an average of 30%.
Investors should however exercise due diligence and choose wisely, making sure their off-plan property in Bulgaria is located in an area where they will resell quickly and easily, or where there is a high rental demand for their buy-to-let option. This is not difficult to do in Bulgaria where tourism has increased by over 50% during the past four years, however some sought after areas are more up and coming than others. It is important to note that reliable year-round rental yields and high investment returns in the capital city of Sofia are proving to be a tempting opportunity to off-plan purchasers today.
With an off-plan investment, even in the worst case scenario if the property cannot be sold upon completion, the final balance due can often be financed by the developer himself over a period of years. Furthermore, the rental income may pay off the finance of this loan and yield further eventual return on investment.
In order to limit financial risk and debts, the developers of any project will wish to sell units off-plan. They understand that if buyers cannot see a physical property at the beginning, they will demand a lower price, while relying purely on the developer’s reputation, the property location, artistic impressions and computer simulations on which to base their decision to purchase.
In addition to the excellent off-plan price, some highly beneficial finance structures are in place. You sometimes need to pay only around 10 - 30% of the purchase price in the form of a deposit, while the rest is payable upon completion. This may be financed by a mortgage if necessary. See our Bulgaria investment finance section for more details.
If you decide to invest in off-plan property in Bulgaria, you will need to decide which strategy you will adopt to achieve the best return on investment. Our experts will help you choose the most appropriate plan, creating an investment programme suitable to your needs, whether this is "pure investment" or a "buy-to-let" strategy. We will also assist you in finding the most appropriate location to suit your investment needs.
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