Bulgarian Properties

You are interested in buying property in Bulgaria but are not sure where to start?

We can help you with all the steps to become the proud owner of a property in Bulgaria.

Steps for buying Bulgarian properties

At present under Bulgarian law a foreign national is unable to purchase land, although this legislation is expected to change once Bulgaria has become part of the European Community in 2007. However foreigners are permitted to buy houses and the land surrounding it by starting a Bulgarian Limited Company. The land and house can be owned by the company and the foreigner can have outright ownership of the company.

This procedure may sound complicated, but is in fact relatively simple and our Bulgarian Lawyer will undertake this on your behalf. The procedure can be broken down into the following simple steps:

1. You must ensure that the property you are interested in is still available. Send an inquiry to us and we will answer within 24 hours

2. A reservation fee is required. This is normally 10% of the value of the property, this will be paid to the seller who will therefore be legally bound to the sale with you. At this time a preliminary contract is signed by both parties. Should the seller back out of the sale, the reservation fee is returned and a cancellation charge levied against the seller which you will receive. Should you however decide against the purchase after the reservation fee has been paid you will forfeit this payment to the seller.

3. At this time our fee is payable fixed at 3% of the purchase price. (Therefore before offering a reservation fee the property should have been viewed and the buyer completely satisfied that the property is the one wanted).

4. The buyer is expected to complete the purchase by paying the balance within 3 months from the reservation payment date. Should the buyer fail to pay the balance by this date there is a risk of losing the property, the deposit and the arrangement fee paid to us, however we will do our best to arrange an extension with the seller on your behalf.

Ireland, England, the Netherlands and France are the four European countries appointed by the International Monetary Fund (IMF) as most likely to suffer from a real estate crisis after USA. According to IMF’s analysys, this is due to the significant increase in property prices for the last five years.

The easier access to mortgages any economy provide and the, the more it is affected by the price fluctuations.
According to IMF the raise of property prices increases the amount of financial securities for all households and reflects in less requirements when applying for a load.

This stimulates expenditure increase for all households. USA, Denmark, the Netherlands, Australia provide easy to get credit loans, while in the meantime a huge increase in property prices has been registered in Australia, Ireland and Spain.

Bulgarian Property prices have increased with an average of 30% and 35% in bigger cities and holiday and spa resorts. The total number of Notary deals is 311 000, which is approximately 4%-5% more than last year.

According to data, provided by Bulgarian Properties agencies, there are about 3 million sq.m vacational properties under construction - 2 m illion sq.m along the seaside and the rest mainly near Bansko.

The secondary Bulgarian properties market has also began to expand as there are many owners who have purchased real estates as an investment. This market consists mostly of properties bought off-plan a few years ago by English people.

Changes in customers have also been registered for the last year. Clients from UK and Ireland are less, compared to those from Russia, Greece, Roamnia and Bulgaria.

Bulgarians have begun purchasing properties located in holiday resorts. However, most of the Most of the clients were business owners and people working in tourism full-time. Their average budget requirements are up to 25 000 EUR.

According to property forecasts, there will be a slight recess in the holiday property market. However, this is expected to result only in the number of deals, but it is not likely to cause a decrease of the prices.