The first quarter of 2022 was fateful for many countries, but especially for our close neighbour that found itself at the centre of the conflict, namely Ukraine. We all know what happened and continues to happen on the country's territory.

As with any crisis, the war between Russia and Ukraine has led to chaos in many sectors of the economy. One of these is the real estate sector. Here, however, we are not talking about a crisis and a decline in real estate transactions, but quite the opposite.

Problem or not

We will address a specific issue and a painful topic for most real estate agencies and Ukrainian citizens who have sought refuge in our country, and more specifically along the Black Sea coast. It is a well-known fact that Bulgaria's beaches and seaside towns are highly preferred by many foreign citizens for investment in various sectors and tourism. Today, however, we are talking about people who have sought a temporary or even permanent home in our country. Why has this become a problem?

Why there are not enough "luxury" properties for everyone who wants one

Many Bulgarian citizens and property and hotel owners opened their doors to refugees from Ukraine, and in particular to that part of the population of the war-torn country that cannot afford to pay a certain monthly rent, given all the obstacles they are going through. Another part, however, having chosen Bulgaria because of the beautiful nature and relatively affordable rents, finds itself in an awkward position. Why? There are not enough properties on the market to meet the requirements and expectations of most Ukrainian citizens. What kind of apartments are in demand? The most commonly sought-after rental properties along the Black Sea coast are: a one-bedroom apartment, two-bedroom apartment or larger, fully furnished, in a good/convenient area, priced from 500 to 1,000 euro. In view of the high demand for mid-range and luxury properties, these proved insufficient to accommodate everyone who is willing to pay the price. Despite all these factors, however, we cannot speak of a significant increase in rental prices.

How landlords reacted to the refugee wave

Although most landlords welcome Ukrainian citizens, some property owners are hesitant to rent out their properties to them, and not for any other reason, but out of security concerns regarding the payment of the monthly rent and utility costs.

Conclusion

In conclusion, we can say that the higher concentration of refugees in Bulgaria's seaside towns has definitely affected the balance between supply and demand. This does not mean, however, that the available properties have run out or will run out, because we all know how dynamic the real estate market is, especially in the rental sector.

Our advice to you, whether you are a landlord or a tenant, is: choose carefully a consultant who is able to negotiate the most favourable deal for you and meet your needs. To avoid subsequent problems with unpaid bills or improper conduct, insist on a simple but professionally drafted lease agreement that can protect your rights in the event of a dispute.