There has been a phenomenal increase in the investment potential of the Bulgarian property market and that has led many people to invest in the market to make some fast returns. The rising property prices have attracted many people to invest in Bulgaria. The article provides an insight into the actual scenario of the situation.
A look at the reality of re-sales of property in Bulgaria and the worth of the property suggests that though there is an increase in prices and build rates, the real estate market in Bulgaria is unregulated and the price is decided by the seller himself. This unofficial rating should however be replaced by professional developers who can decide the cost per square meter.
The rates should be decided on the basis of supply and demand. This would also help with the re-sale of the property. The resale price can be a total of the original cost, the renovation charges, local market rates and the desired profit. With the increase in the number of apartments, the buyers have choice and renovated buildings are experiencing lesser demand. Currently, the supply exceeds the demand in Bulgaria, in terms of land and property.
Land resale is lucrative if the location is good and there is good demand for regulated land. Property prices have increased in the recent times and the lack of regulation in Bulgarian real estate market allows the seller to value the property and this often means inflated sales figure rather than the actual market rates. This means that long term investment in land would yield better profits with time, with respect to the current rate of investment.
Although Bulgaria has been labeled as one of the best places to invest in foreign property, the growth rates might not continue at the same rate. The investors are advised to consider Bulgaria as a long term investment rather than hope for immediate returns. The key to investing in Bulgaria is choosing the appropriate location.
Clues for Property Re-Sale
1. The buyers have a great deal of choice for both property and rates since the supply exceeds demand currently.
2. Better returns can be expected in medium to long term, but the returns shouldn’t be over-estimated.
3. People intending to make fast profits should invest wisely avoiding potential risks.
4. Location of the property would directly determine the returns which can also be influenced by the future infrastructural developments in the vicinity.
5. Research on the market price and setting reasonable prices for resale by marketing the best features of the property would make it special.