The comparison was made with the same period of the previous year, 2021. In subsequent years, the rise in prices continued – in 2023, property prices in Bulgaria increased by 9.4%. The study was carried out at sites in the capital of the state, Sofia, and in the coastal resort area. Such dynamics of price growth have not been noticed in the country for more than 10 years, which very opportunely plays into the hands of construction companies throughout the country. The intensification of construction and renovation of existing facilities is flooding the market with new offers, increasing dynamics and expanding price diversification even further. The activation of the Bulgarian real estate market was somewhat slowed down by the COVID-19 pandemic, but the country has already recovered from the pandemic and property prices have returned to normal.
While buying property in Bulgaria, consider a house in a resort area: in the capital, on the seashore or at a ski station, for which Bulgaria is so famous. The cost of unfinished real estate in Bulgaria is usually 25-30% lower than a ready-made house or apartment in a residential complex. And if you consider that the construction of apartments usually takes a minimum of time, then within a year you can begin to settle into your new “nest”.
So, you have decided to buy an apartment somewhere in a resort area of Bulgaria, you had a wonderful first vacation and now it’s time to return home in the cold and bad weather. At this point, do not forget that real estate abroad is purchased not only for living or recreation. During your absence, an apartment or house can be rented out for a season or until your next visit. This step will provide you with return on investment in real estate.
Real estate investment profitability in Sofia and other cities
Analysis of data from Bulgarian real estate websites shows that the March price increase of 11.5% continues to increase by the summer of 2023. For example, the cost of a square meter of housing in the central area of Sofia in March was approximately 2,306 euros. By August, the cost of a square increased to 2,546 euros. The same can be said about the remote areas of the Bulgarian capital. In the Varbnitsa area, the average price of a meter in March 2022 was 1,030 euros, and by August it had risen to 1,260 euros per square meter.
Also, try to find houses for sale in Burgas Bulgaria. There is also a tendency for housing prices to rise. In the Lazur district in spring, apartments cost from 1,688 euros per square meter, and in August the average supply price in this area was more than 2,000 euros/m2.
In Varna, there is also a trend towards rising prices, but not as active. For example, housing in the St. Nicholas area in the spring cost from 1,052 euros per square meter, and in the summer the cost increased to 1,080 euros. In the area of the Sunny Day resort, the cost of apartments has not changed for the summer; the price tag here starts from 2,375 per meter. In the Golden Sands area, houses for sale, Bulgaria, prices increased by 40 euros – from 1,003 to 1,043 euros per square meter.
International Investment experts note that the likelihood of further rapid growth in real estate prices in Bulgaria is not high. The Bulgarian market is supported by strong demand for housing, slow growth in the number of mortgage loans and the absence of the “bubble” observed in many European countries after emerging from the pandemic.
Real estate investments with the highest returns
Offices. Oversupply
According to Cushman & Wakefield3, in the second quarter of 2021, leased office space in Sofia increased by 53 thousand sq. m. m. The total area of class A and B offices in the capital reached almost 2.19 million sq. m. m. The share of vacant space was 14.3% – at the beginning of the year the figure was 12.9%: the transition of employees to remote work and the uneven pace of economic recovery reduced the demand for office space in Sofia and other large cities in Bulgaria.
On the other hand, the lack of major new projects may lead to a decrease in supply: by mid-year, only 212 thousand square meters are under construction. m of office space.
Rental rates remain at €15 per sq. m. m in central business districts, and in buildings located along the main highways of Sofia – €12–14 per sq. m. m.
Warehouses and industrial areas. Everything for the locals
In this segment the volume of rented space almost corresponds to pre-crisis indicators. In Sofia, most of the completed projects were built by companies for their own use. At the moment, the area of industrial and warehouse premises under construction is about 330 thousand square meters. m, of which almost 70% are custom built and will be used directly by the owners.
For the first half of 2021, the level of vacancy in this segment in Sofia was about 4% of the total supply.
Rental rates in Sofia remain stable, in the range of €4.2–4.4 per sq. m. m. Premises over 10 thousand sq. m. m are offered at a price of €3.8–4.0 per sq. m. m.
