With the vaccines came back the hope that soon our daily lives could return to normal. After COVID 19, however, there is something else coming that is no less scary - the economic crisis.
In times of crisis for the Bulgarians there has always been one safe choice - real estate investments. Whether it is a plot in the countryside or an apartment in the city, the Bulgarians prefer to keep their money in a property investment rather than in a bank. In recent years, agricultural land has become firmly established as an alternative to urban investments. With the development of the market, the owners realized that their rural properties can be sold even faster thatan apartment. On the other hand, the price of land is growing steadily and at a much faster rate than real estates in the city.
Here are the top trends in the agricultural land market in 2021, according to Agrion’s experts.
The pandemic and climate change have created serious problems for the agriculture in 2020, especially in Dobrodzha. However, Agrion’s experts do not report a decline in transactions. On the contrary - there is a steady increase in sales, and one of the reasons is the owners selling their land for financingthe purchase of a second home or other real estate.
There are currently a lot of people in the real estate market who want to buy a home, experts say. Market research and rumors of falling property prices are often the reason they embark on a search for a deal. And the easiest way to finance a purchase is to sell hereditary agricultural land. About 20 decares can often bring in enough cash to buy a house in the village or to partially finance the purchase of an apartment in the city.
Boom in demand for rural real estate
The increased demand for rural properties leads to increased demand for land near those settlements. Usually the clients are younger people who are looking for a holiday home or want to move out of the cities in which they currently live.
Buying a country house often leads to a resurgence of interest in agriculture. Young people are interested in organic farming, clean food and opportunities to produce it.
This arouses the demand for agricultural land, near settlements, in the mountains or by the sea.
The engine of the market at the moment are the deals with ideal parts.
Often landowners are whole families who have a hard time reaching a common decision to sell. Therefore, some of them prefer to sell their share without headaches with relatives and co-owners. For all of them, Agrion has a solution, even in the most complicated cases. The company's lawyers have also proved to be capable to cut a Gordian knot between 30 heirs, some of whom live abroad.
Businesses are looking for fields to invest
For business, the crisis is not only a challenge, but also an opportunity for profit. That is why Agrion's brokers report a serious interest in the exclusive properties with investment potential, which have recently been actively offered by the company.
Demand for the plots is high because they are located in communicative places, such as near highways, large cities and seaside resorts, and investors see huge potential in their development.
The terrains are suitable for hotels, warehouses, holiday villages. The plots are also an opportunity for those looking for a long-term investment. The area of the properties varies from one to over 1000 decares, which makes them perfect for the construction of both small sites and large production sites or TIR parking lots, for example.
Curiously, the interest is divided between direct investors and real estate agencies looking for plots for their clients.
Leasing and financing - help for farmers
The pandemic and climate change have forced landowners and farmers to be flexible. As the largest company in Bulgarian agriculture management, Agrion has renewed and improved the conditions of its financial products to help farmers.
With the new conditions, each plot of land from Agrion can be purchased on leasing, with payment scheme tailored to the cash-flow of their customers. This is a serious relief for farmers who have the opportunity to buy property without disrupting their financial planning or to obtain the necessary financing without losing assets.
Repayment depends on the specific needs of the lessee. Farmers can choose how many installments and when to pay their lease, taking into account these payments with the income fluctuation.
Despite the fragile hope, 2021 brings yet a lot of worries and fears for farmers. It is possible that agriculture will suffer from another bad year, and the pandemic will continue to disrupt the economy.
Therefore, more and more farmers will look for flexible products that do not bind them to tight payment deadlines or unaffordable monthly instalments, that can drown their business, Agrion’s experts say.
Trends for 2021
The market is currently in a delicate balance between supply and demand, but also between fears and hopes.
This means that next year the prices of agricultural plots may collapse if the pandemic or jump sharply in case of a favorable development of the situation at hand.
On the other hand, the economic crisis will probably force many people to sell their hereditary land, so that they can survive the year, experts say. They advise those who urgently need money to sell now, when that prices are relatively high, because next year may not be the same case.
Those who invest in land, on the other hand, must look carefully at the statistics. For the last 10 years the price of agricultural land has increased by 600%. However, this has not been a constant over the years, there are periods in which it has gone down and those in which it has grown rapidly. However, it is certainly an asset that will not lose its value in the long run.