The future must be built in the present

Correctly analysing the market and buying an apartment at the initial stage of construction in Bulgaria is a profitable investment in the future, an opportunity to earn extra money and save.

Off-plan property in Bulgaria is sold in large cities, ski and balneological resorts, and along the coast.

It is very important to define the purpose of the purchase and what you wish to gain from this property.

Construction stages in Bulgaria and calculation of residential area

There are 16 stages that a developer goes through to commission a residential building or complex. At each stage a certification Act is obtained.

The very first and most important Act is the building permit.

Most often the payment schedule stipulated by the contract is tied to the receipt of the Acts. The first payment, 20-40%, is made upon signing the preliminary contract; subsequent transfers follow: after obtaining Act 14 (shell construction, building frame), Act 15 (completed construction), and Act 16 (commissioning).

Clients often ask: „Is it possible to live in a house without Act 16?“ It is possible to live in a new-build with Act 15, but the state has not yet accepted the building from the developer. If the developer has taken care of you, let you into the house, and connected separate temporary meters for water and electricity while waiting for Act 16, this shows that it is important to him that you, as the future owner, are satisfied and may bring in friends or relatives who will also buy property. Rarely, but it does occur (especially in resort complexes), the opposite picture arises: the developer has obtained Act 15, the owner has started to use his apartment, but the developer has not submitted the documents for Act 16, or has submitted them but the building was not accepted. In this case, utility payments are considered common for the whole entrance and are divided in equal shares, regardless of whether you use the apartment or not.

In Bulgaria the calculation of areas has changed since 2003. Anyone who wants to buy property must know that there is the total area of the apartment, the living area, and the common parts. The total area of the apartment includes the living area and the common parts. The percentage of common parts is calculated individually and averages 5-15%. Common parts are the areas of common use: staircase, lift, and so on. The living area includes everything within the perimeter of the apartment plus half or the full thickness of the wall, which, according to Bulgarian standards, is 50 cm.

You can buy property cheaply in Bulgaria at the construction stage at the initial stage, when the building is at the foundation-pit stage. At each subsequent stage of the building's construction, the price rises. This continues until construction is completed. With the passing of each successive stage, the price per square metre increases and the choice of apartments decreases.

In the last quarter of 2019, building permits were issued in Bulgaria for 1,630 residential buildings (9,018 apartments). The increase in the level of construction amounted to 6.6%.

Resort property on the Black Sea coast reaches no more than 4-6 storeys in height, while urban property has occasionally reached 15-16 storeys over the past few years.

Layout of urban property in residential buildings on the coast:

• 60-70% - apartments with 1 bedroom (combined living room with kitchen, bedroom, bathroom, hallway, balcony),
• 20-25% apartments with 2 bedrooms (living room with kitchen area, 2 bedrooms, 1 or 2 bathrooms, entrance hall, terrace),
• 10-15% studios,
• 5% - multi-room apartments.

Sales of residential property to foreign buyers in the first half of 2019 grew by 28.9% compared with the same period of the previous year. Investing money in Bulgarian property remains a reliable way of preserving and increasing one's capital.

Advantages and disadvantages of buying an apartment in a building under construction in Bulgaria

It is profitable to buy an apartment in a new-build from a developer in the large cities of Bulgaria: Varna, Burgas, Sofia, Plovdiv.

Buying resort property from a developer means investing in a new, fresh apartment of which you will be the first owners. In addition, you will also receive an instalment plan. But such a purchase will not bring you other benefits. Resort property is more profitable to buy on the secondary market. Of course, there are developers on the coast too who strive to compete and offer interesting conditions for buyers, but there are only 10-15% of them.

Advantages of buying an apartment in a building under construction in Bulgaria

• The price per square metre is the lowest, with the opportunity to save up to 30% of the total cost of the property.
• The opportunity to receive additional discounts for prompt payment or for buying several apartments in the building.
• Receiving an interest-free instalment plan up to the moment the building is commissioned. Depending on the scale of the development, the terms range from 1 to 3 years.
• Freedom of choice: floor, area, price, view from the window. To buy an apartment in a new-build in Bulgaria means to choose the very best option in the building or complex. The most sought-after apartments in Bulgaria are studios in residential buildings/complexes and small apartments.
• The opportunity to monitor the construction process, the quality of the construction and the materials being used. The presence of video cameras on site makes it possible to do this remotely.
• One of the important nuances is the ability to redesign the layout of the property to suit your individual taste. At the construction stage this is legal, and changes are permitted.

Disadvantages of buying housing in a building under construction in Bulgaria:

• You see the layout on paper. Not everyone can visualise the finished home.
• Waiting, and the inability to use it during construction. On the other hand, ready-to-move-in offers are more in demand and their number is smaller.
• There are risks when buying new housing, but they can be reduced to a minimum. Housing should be bought from a reliable developer with a track record, one who has an excellent reputation and dozens of completed projects that you can visit, view and use to picture the level of quality of your future home.

Tips when buying an apartment at the construction stage in Bulgaria:

• Checking the documents: notarial deed of the land plot, building permit, cadastral plan, architectural distribution, presence of Act 15, Act 16, if they exist.
• When buying property at the construction stage, it is worth using the services of a lawyer or a reliable estate agency in Bulgaria that has a lawyer. It is important that the following points are clearly and precisely spelt out: the payment schedule, the obligations of the seller and the buyer, and the sanctions towards both parties in the event of non-fulfilment of the terms of the contract; it is desirable that these be „mirrored“.
• The reliability of the developer. Find out the history, the reputation and with what funds he is building: loans or his own.

The company “Bulgaria Avenue” will be delighted to select the most profitable, liquid and best option that suits you personally in price, quality and location.