In the dynamic world of real estate investment, understanding the return on investment (ROI) in residential properties is crucial for stakeholders. A recent study published in ‘Строително предприемачество и недвижима собственост’ (Construction Entrepreneurship and Real Estate) has shed light on the ROI trends in Varna, Bulgaria, from 2017 to 2024, offering valuable insights for investors, developers, and brokers.
The research, led by Yana Stoencheva from the University for National and World Economy, focused on the ROI of two-bedroom apartments across various neighborhoods in Varna. The study revealed significant variations in ROI levels, which are pivotal for both construction entrepreneurs and real estate market participants.
Stoencheva’s findings indicate that the neighborhoods of Vinitsa, Mladoст 2, and Kaisieva Gradina experienced the highest growth in ROI during the studied period, with increases of 100.78%, 63.49%, and 61.39% respectively. “These neighborhoods have shown a consistent trend, suggesting stable ROI over the years,” Stoencheva noted. This trend is most evident in the Chaika, Asparuhovo, and Mladoст 1 neighborhoods, offering investors a higher degree of predictability and stability in returns.
Conversely, neighborhoods like Morska Gradina, Vladislavovo, Levski, and Gritska Mahala saw a notable decline in ROI. This underscores the importance of strategic location choices for investors. “Investors need to be clear about their goals and align their property choices with their priorities,” Stoencheva emphasized.
The study’s implications are far-reaching. For developers, it highlights the importance of focusing on high-growth areas to maximize returns. For investors, it provides a data-driven guide to making informed decisions. Brokers can use this information to better advise their clients on market trends and potential ROI.
As the real estate market continues to evolve, such research becomes increasingly vital. It not only informs current investment strategies but also shapes future developments, ensuring that the market remains dynamic and responsive to investor needs. The insights from Stoencheva’s research are a testament to the power of data in driving informed decision-making in the real estate sector.