"Little Russia" is behind "New Bulgaria" and "Old Europe" in the holiday property market along Bulgaria's Black Sea coast.

Half of the buyers of holiday apartments by the sea are high-income Bulgarians up to 30 years old, who work mainly in the IT sector, and the rest are retirees from Germany, France, Italy and the Netherlands.

Two-room apartments in gated communities are the most sought-after and average prices start at 1900 euros per square meter. Maintenance fees in gated communities are no longer surprising to buyers, who are currently willing to spend BGN 60-70 per month on the maintenance of swimming pools, fitness gyms and children's playgrounds. Ukrainian investors are entering the newly built coastal housing market in Bulgaria.

This view of the Bulgarian coastal property market at the height of summer was presented by National Real Estate Association Board members Atanas Argirov and Stefka Kalcheva in interviews with BTA.

With house prices in Varna increasing significantly over the last couple of years, buyers tend to look for a holiday property which they can use as their first home. House prices in Bulgaria's largest coastal city, located on the northern part of the country's Black Sea coast, have risen by 60% in about two years, while holiday property prices have risen by 25%. Therefore, 20% of people looking for a first home choose vacation properties.

Many buyers prefer real estate in and around the resort of St. Constantine and Helena, which has become a structural part of the city of Varna. The resort now has more residential buildings than hotels.

Two-room apartments are the most popular, accounting for 40% of real estate purchases in Varna.

South

In the Burgas area on the southern part of the Bulgarian coast, interest in holiday properties is increasing and half of the deals are with Bulgarian buyers. The other half is with people from Germany, mostly pensioners who originally lived here on rent. People from Poland, the Czech Republic and Israel (mainly Russian Jews) show interest in such purchases. These new buyers have partially filled the void created by the Russians who sold their real estate in the Burgas area. Many Russians would have preferred to stay in Bulgaria, but they faced visa and transport problems, which posed an insurmountable barrier to using their summer homes here.

Prices of holiday properties near Burgas do not show any significant year-on-year growth, only a modest 5-6% which is in line with inflation. Sales activity in 2023 and 2024 has been flat, with no major peaks. Prices are expected to rise by a further 2-3% by the end of 2024, which would put annual growth between 4% and 8%.

As usual, people looking to buy holiday properties on the southern stretch of the Bulgarian coastline are most attracted to the resorts of Sozopol, Nessebar, Sunny Beach and Primorsko. A German community has long been established in Aheloy. They mainly invest in closed properties. Ukrainians are interested in buying apartments in the city of Burgas.

Ukrainians are definitely a market factor in Burgas as they are involved in 30% of holiday property purchases.

Pomorie appeals to Poles, German speakers and Ukrainians. Sozopol and Nessebar are at the top of the ranking, along with Ravda and Sveti Vlas. Proximity to the sea is one of the most important price factors. /BTA