Buying a Bulgarian off-plan property or any other off-plan property means reserving a plot on a new development before the property is completed and often before construction has started. The developer is keen to sell as many properties as early as possible in order to raise capital for construction and minimize the risk to themselves and the borrowed funds from banks.
Properties that are marketed by estate agents at this early stage are usually discounted by around 10 to 15% below market value because there is nothing to show potential purchasers, except a floor plan and artists impressions of the finished development.
Usually at this stage of marketing a pattern emerges amongst investors; those that arrive first tend to buy the most sought after property – first the penthouses then the corner units and finally the ground floors units with private gardens – which then has the effect of increasing the price of other units within the development.
Estate agents love to sell off-plan properties as developers often pay attractive commissions. But what's in it for the buyer? Why is buying off-plan property in Bulgaria so popular? There is no doubt that a significant proportion of foreigners buying Bulgarian off-plan property are experienced speculators looking to make a risk-free, high-return investment by selling on the purchase contract before completion.
Even so, around 30% of foreigners looking for a holiday home in Bulgaria plan to buy a Bulgarian off-plan property. Though the idea of committing hundreds of thousands of Euros on the basis of plans and specifications will unnerve buyers who would rather see a finished property before handing over the Euro, a large minority are more than happy to do so. For them, it would seem the the advantages outweigh the disadvantages of buying off plan.
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