Russians buy up property on Bulgarian Black Sea coast

During the Q1 2011 Russians were involved almost every property deal. Brokers believe that Russians are interested in Bulgarian properties because of low prices and weak Euro.

According to specialists of Bulgarian Properties Company, in the first six months of 2011 property prices of Black Sea Coast have decreased by 5%, while slump of 10% was recorded in 2010.  Residential properties fell in price more than by 50% since boom times, SETimes reports.

Low property prices encourage deals’ growth. Analysts of Bulgarian Properties report that in the six months of 2011 sales’ volume increased by 50% year-on-year.

Atanas Terziev, a real estate consultant from town of Tsarevo, says that the most demanded apartments among Russian buyers are located in the common buildings. They are not interested in purchase of housing located in the modern resort buildings. «Maintenance fees in popular resort complexes like Slanchev Bryag may reach € 5000 – € 6000 per year. That’s why Russians try to buy apartments in the conventional buildings», - the expert says. He adds that Russians ousted English and Irish buyers from Bulgarian property market.

Irish and British have purchased houses on the seacoast in 2006-2008. Nowadays they are obliged to sell properties to Russians, so they can’t pay for mortgages. Russians, unlike the English and Irish, come in Bulgaria with cash.

During the last five years about 150 thousand Russians bought residential properties in Bulgaria. They spent more than € 695 mln.

According to brokers, most of these buyers are middle class families from Moscow and Saint-Petersburg.