Experts are claiming that the Bulgarian property market may have bottomed, making now a good time to reconsider property investment in the country. The market has had a tough time, arguably one of the toughest, not least because its downturn started well before the rest of us. This has led to prices falling up to 50% in the coastal resorts, and 20% in the cities according to those behind the claims. Not that I disagree.
Has the market bottomed? I don’t know and the truth is no one will ever really know when a market hits its absolute rock bottom, in fact by the time we realise that it has we will be the latecomers who have long missed the worm. The best way is to make your own judgements based on growth potential, value for money and macro-economic fundamentals.
In Bulgaria we certainly have low prices, in fact according to the Global Property Guide property prices in Sofia are currently around 1,759 EUR per sqm, compared to 2,354 EUR per sqm in Belgrade, Serbia, 2,406 EUR per sqm in Vilnius Lituania, and 2,748 in Ljubljana, Slovenia.
This would seem to suggest that Sofia property, and that of other parts of Bulgaria is running undervalue. However, Bulgaria’s downturn bit first because of oversupply and the deep recession and drop in foreign demand caused by the global financial crisis certainly never helped that. So, it may well be the time to buy in some places, but I would still be inclined to do some length research into supply and demand in any areas I looked at.
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