Over the last two decades, the interest in the real estate market and in particular investments in Bulgaria has increased significantly. This is due to the developing economy, stable real estate prices and the increasingly favorable conditions offered by banks in mortgage lending. Raising of the standards is also crucial.
In order to avoid unforeseen situations, anyone who has decided to invest in a property in Bulgaria should answer some fundamental questions:
The first and most important decision to make is what type of property to target: an apartment in a big city, a vacation property in a resort or holiday village, a country house, an office, a shop or more.
People with less experience usually buy an apartment for rent. In this case, you can buy a furnished home that is already rented out or invest in a property in a new building. The second option allows the apartment to be completed and furnished so that it can then be rented out for a higher rent. The same applies to homes that have been renovated or are in the process of being renovated.
Office or open space such as a shop, restaurant, showroom, etc. Usually, more money is invested because the prices per square meter are higher. However, in a large percentage of cases, the rate of return is higher.
The payback period for holiday properties is much longer than other types of properties. Many different factors are taken into account when determining profitability, such as employment during the year, cost of rent, strong, weak periods, means of support, etc.
A good investment depends on a detailed study of the real estate market at the time of purchase and forecasts for its future development. This guarantees a better solution to the buyer’s capabilities and the ultimate goal of the purchase. When investing in real estate, it is most appropriate that this happens during construction or renovation because the prices are lower than those of the finished product. Important considerations for such a purchase are the characteristics of the project itself, location, company builder and investor. The better option is for the buyer to opt for a stable company with a long history and experience behind them.