Profitable investments through letting

All over the world, people are always and everywhere interested in earning money by investing in various sectors.

Investing in real estate has always been considered a reliable and successful platform for preserving and growing capital.

Key advantages: keeping money in real estate, security, and rising housing prices.

The Bulgaria Avenue real estate agency  will select and help you buy the most liquid and profitable real estate for renting out. Investment property in Bulgaria, whether a flat, house, or studio, will bring its owner guaranteed profit and secure their future. On our website you will find investment property options in Bulgaria - by the sea, in the city, in the mountains, in the countryside. From developers and on the resale market.

Is it worth buying property in Bulgaria in 2020?

The dynamics of the Bulgarian property market are positive. The market can offer the buyer everything from inexpensive properties to elite-class houses, so if you are considering investing money in real estate, in 2020 it is worth choosing Bulgaria.

According to national statistics, experts forecast a rise in property prices of 7-10% on average for 2020.

In Bulgaria, as throughout Europe, economic growth is being observed and there are no prerequisites for a crisis that could cause a drop in property prices.

According to data provided by the National Statistical Institute, in the last quarter of 2019 GDP (gross domestic product) grew by 3.7% compared with the last three months of 2018, when GDP growth was 0.8%.

It should be noted that in 2010-2012 mortgage rates in Bulgaria were around 8-10%, whereas today the interest rate is 2.7% per annum.
In the last quarter of 2019, construction permits were issued in the country for 1,630 residential buildings, or 9,018 flats/apartments. The growth in construction activity was 6.6%.
Sales of residential property to foreign buyers in 2019 grew by 28.9% compared with the same period the previous year.

According to the report by the Real Estate Investment Association for the second quarter, the majority of real estate was bought in Sofia, Plovdiv and Varna, with Burgas in second place. During the reporting period, the greatest interest in the Bulgarian real estate sector was shown by citizens of Israel, Europe, America, Russia and Ukraine.

Thus, investing money in Bulgarian real estate is a reliable way to preserve and grow your capital.

Bulgarian investment property – for sale or rent

The property market in Bulgaria is saturated with a wide variety of offerings. In 2020, property prices in Bulgaria are the lowest in Europe. On the coast, in the mountains, in small towns and villages, housing prices start from €5,000-10,000.

Therefore, anyone planning to buy abroad can purchase inexpensive property in Bulgaria.

It is important to define your goal before purchasing. Buying investment property in any country requires analysis and knowledge of the market. The most important factor should be the balance of price, quality and location.

How to earn money from property in Bulgaria

To rent out property, you need to decide:

 - whether you plan to rent it out yourself;

 - through a management company;

 - through a real estate agency.

• Renting out apartments in Bulgaria on a daily basis

When purchasing property on the Black Sea coast from a developer or on the resale market, almost every apartment complex/hotel has a management company through which, after signing a contract, you can receive additional income at the end of the year.
Larger developers offer guaranteed rental income of on average 5% per annum.  Handling daily rentals yourself is much more profitable, but then you need to live in Bulgaria. Each management company usually takes 30-40% of the profit.

Let’s suppose. You decided to buy a flat by the sea for  €50,000.
The management company guarantees you €2,500 per year. But if you handle the letting yourself, you can earn €60-70 per day in a liquid complex (this is important). The season lasts around 100 days in summer, giving you a total of €6,000-7,000. That is around 12-14%. Therefore, it is more profitable to rent out a flat in Bulgaria yourself.

• Long-term rental of flats/apartments in Bulgaria

Investment returns can be obtained through this type of letting by buying property in a new development or in elite buildings in the best districts of large cities.

The most sought-after cities suitable for long-term rentals are Sofia (the capital), Varna and Plovdiv. Speaking of urban seaside property, Varna is one of the most interesting cities for investment. In 2017 the city became the youth capital. It has many prestigious universities where students from Germany and Scandinavia come to receive medical education.
Students rent flats for €500-700 per month for a period of 5-6 years. The price per square metre in the city centre in an elite new build starts from €1,300.  Rental yields can reach 10%. This type of letting is more profitable and stable than on the coast, but the investment is also much higher.

• Long-term rental of commercial premises in Bulgaria

By buying an office, shop, restaurant or café in a liquid location, it is possible to earn from €20 per square metre. Prices in large cities are around €1,000 per square metre.

Our company is often asked: „Where is there high demand for renting flats in Bulgaria?“

The answer is very simple — it depends on the goals of the property purchase and the size of the investment.

• On the southern coast — resort property prices are affordable, so they suit any budget.
• On the northern coast — more expensive, due to nature reserves and park areas, with no industry.

There is demand for flat rentals everywhere; it is important to choose liquid housing!

What to pay attention to when investing in resort property

There are certain nuances and laws you need to know in order to make the right choice.

Very important!!! When you purchase a flat or house abroad, it is better to trust a competent specialist in the field of real estate.

For example, not all developers allow you to rent out apartments in their complex on your own. In such a case, this property is not suitable for investment, but only  for holidays or living.

Pay attention to whether the complex has categorisation; if it does, you will not be able to rent it out on your own, only through the management company.

Tips for renting out a flat in Bulgaria

If you plan to rent out the flat yourself, in the first year you need to try to equip the flat with everything necessary for the comfortable stay or living of your guests. This way you will be able to gather reviews and recommendations. For short-term (daily) letting of property, you need to obtain categorisation from the town hall's tourism department. For long-term rentals, categorisation is not required.

If you plan to rent out the flat through an agency/management company, read the contract carefully — this is very important. Because, in addition to profit in the form of guaranteed rent or a certain contractual amount, additional expenses may be stipulated that need to be agreed upon so that there are no surprises.

Bulgaria Avenue will be happy to work with you individually and select the most profitable and interesting option that will bring you investment returns and profit. Get in touch — we are always glad to hear from you!