The Russian city of Sochi is losing its competitiveness for seaside property in favour of other countries like Bulgaria, due to high costs.
This forecast is made in an article posted on the website of The Moscow Times, a Russian English-language newspaper.
The author claims that a property boom in Sochi after this year’s Olympics is not very likely. Starting prices at the Black Sea resort are close to USD 1,700 per square meter, where Bulgarian rivals can boast with half this sum.
“Moreover, better quality of some services in Bulgaria comes together with interest-free 3-year mortgages”, Evgenia Starkova, a Russian property entrepreneur has told The Moscow Times.
The director of another real estate agency explained that Russian middle-class citizens preferred Bulgarian seaside, while the better-off ones opted for Spain or Italy.
Short travel by plane, the more moderate Bulgarian climate in summer, and the fact that many of Bulgarians have studied Russian at school add to the reasons many Russians choose the country.
The seaside city of Sochi showed off this February with the most expensive Olympics in history, with investments worth more than USD 50 B.
Russian businesses have said that they expect tourists and buyers will be attracted to the destination long after the Games, due to its climate, the combination of mountains and sea, and to other upcoming sport events that are scheduled to take place later at the resort.
However, high prices turn away potential Sochi home owners, with a mere 700 apartments changing hands every year.