Authored by the expert who managed and guided the team behind the Bulgaria Property Pack
Everything you need to know before buying real estate is included in our Bulgaria Property Pack
Bulgaria stands out as one of Europe's most affordable property markets, with apartment prices significantly lower than neighboring countries like Greece, Romania, and Spain.
The country offers exceptional value for money due to a combination of economic factors, demographic challenges, and infrastructure development that creates unique investment opportunities for buyers seeking European property at bargain prices.
If you want to go deeper, you can check our pack of documents related to the real estate market in Bulgaria, based on reliable facts and data, not opinions or rumors.
Bulgaria's property prices remain 40-60% lower than Western European averages due to low salaries, population decline, limited foreign demand, and developing infrastructure.
Despite challenges with corruption and bureaucracy, urban markets like Sofia show strong growth potential with rental yields of 4-5% and price appreciation forecasts of 3-10% annually through 2025.
| Factor | Bulgaria | EU Average/Comparison |
|---|---|---|
| Apartment Price per m² | €1,800 (Sofia) | €3,000-4,000 (major cities) |
| Average Monthly Salary | €1,315 | €2,500+ (Western Europe) |
| Population Change (30 years) | -2 million | Stable/growing in most EU |
| Rental Yields | 4-5% | 3-6% (varies by country) |
| Property Transaction Tax | 2-3.3% | 3-10% (varies by country) |
| Foreign Ownership | EU: full, Non-EU: restricted | Generally unrestricted |
| Market Outlook | Moderate growth expected | Mixed, depends on location |
Fact-checked and reviewed by our local expert
Yeheli Samuels 🇧🇬🇮🇱
CEO and Founder, Dira Bulgarit - Israeli real estate in Bulgaria
What are the current property prices per square meter in Bulgaria compared to Greece, Romania, and Spain?
Bulgaria offers the most affordable property prices among major European markets, with Sofia apartments averaging €1,840 per square meter as of September 2025.
In Bulgaria's capital, central districts command €3,000-4,000 per square meter, while suburban areas range from €1,000-1,700 per square meter. Other major Bulgarian cities like Varna and Plovdiv typically see prices between €1,500-2,000 per square meter for apartments.
Greece shows significantly higher prices, with Athens apartments averaging €3,800-4,800 per square meter and Thessaloniki ranging €2,100-2,600 per square meter. The Greek national median reaches approximately €3,400 per square meter for apartments and €4,818 per square meter for houses.
Romania presents mixed pricing, with Bucharest apartments at €1,725-1,860 per square meter and Cluj-Napoca reaching €2,960 per square meter. Spanish property commands premium prices, with Madrid averaging €3,800 per square meter and Barcelona reaching €5,100 per square meter.
It's something we develop in our Bulgaria property pack.
How do average salaries and purchasing power in Bulgaria compare with the rest of Europe?
Bulgaria has the lowest purchasing power in the European Union, with wages significantly below Western European standards despite lower living costs.
As of Q2 2025, Bulgaria's gross monthly salary averaged BGN 2,572 (€1,315), with median earnings around €1,064. This represents a substantial gap compared to Western European countries where average salaries typically exceed €2,500 monthly.
Bulgaria's purchasing power stands at approximately 64% of the EU average, creating a challenging dynamic where property may seem affordable relative to local prices, but disposable income remains limited. Living costs are indeed lower than Greece, Romania, or Spain, but the salary differential often outweighs these savings.
Greek salaries generally range €1,300-2,000 monthly, Romanian wages average €1,200-1,400, while Spanish workers earn €1,800 or more on average. This salary disparity directly impacts local property demand and affects how much Bulgarians can afford to pay for housing.
The low purchasing power explains why property prices remain suppressed in Bulgaria despite EU membership and economic growth.
What are the main reasons foreign buyer demand is lower in Bulgaria than in other EU countries?
Foreign buyer interest in Bulgaria remains limited due to perceived corruption, bureaucratic inefficiency, and concerns about market transparency.
The main barriers include:
- Persistent corruption concerns that create uncertainty about legal processes and property transactions
- Slow and unpredictable bureaucracy that complicates purchase procedures
- Small domestic market size limiting resale opportunities
- Declining population reducing long-term demand prospects
- Underdeveloped infrastructure compared to Western European alternatives
Real and perceived risks about the legal system, regulatory environment, and political stability significantly impact investment decisions. Many foreign investors prefer more established markets like Portugal, Spain, or Greece despite higher prices.
Bulgaria's shrinking labor pool and market size make large-scale development projects less attractive to international developers. The country also lacks the international brand recognition of competitors like Croatia's Adriatic coast or Portugal's Algarve region.
These factors combine to suppress foreign demand, keeping prices lower than they might otherwise be in a more internationally recognized market.
How much has Bulgaria's population declined in the last 30 years, and how does this affect housing demand?
Bulgaria has experienced one of Europe's most dramatic population declines, losing more than 2 million people over the past 30 years.
| Period | Population | Change |
|---|---|---|
| 1990s | ~8.5 million | Baseline |
| 2000s | ~7.8 million | -700,000 |
| 2010s | ~7.1 million | -700,000 |
| 2025 | 6.45 million | -650,000 |
| Annual decline | 40,000-70,000 | Ongoing |
| Main causes | Emigration, low birth rates | EU mobility |
| Regional impact | Rural areas most affected | Urban concentration |
This demographic decline puts persistent downward pressure on housing demand, particularly outside major cities and tourist regions. Rural areas face surplus housing stock with minimal demand, while urban centers like Sofia maintain stronger markets due to internal migration patterns.
The aging population structure further compounds the challenge, as older residents typically downsize or move to care facilities rather than purchase new properties. Migration to Western Europe continues as EU membership allows Bulgarian citizens to work freely across the union.
Don't lose money on your property in Bulgaria
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What is the unemployment rate and overall economic stability like in Bulgaria compared to Western Europe?
Bulgaria maintains a low unemployment rate of 3.6% as of Q2 2025, which compares favorably with many EU countries.
Economic growth is positive, with 2.9% expansion expected for 2025, though Bulgaria continues to lag Western Europe in GDP per capita and overall economic development. The country benefits from EU structural funds and foreign direct investment, particularly in manufacturing and services.
However, labor shortages have become a significant challenge due to emigration to higher-wage EU countries. This creates a paradox where unemployment is low, but available workforce is limited, affecting both housing demand and construction supply.
Economic stability has improved since EU accession, with better institutional frameworks and regulatory alignment. Political stability remains a concern, with frequent government changes affecting long-term policy consistency.
Bulgaria's economy is increasingly integrated with Western Europe through trade and investment, but salary levels and living standards remain substantially below Western European averages, contributing to continued emigration pressure.
How well-developed is Bulgaria's infrastructure, and how does that influence property values?
Bulgaria's infrastructure is improving through significant EU-funded investment programs, though development remains uneven across regions.
Transport infrastructure has seen major upgrades, with investments in roads, railways, airports, and digital connectivity. Sofia, Varna, and Burgas airports benefit from EU-funded modernization, improving international accessibility for property owners and tourists.
Social infrastructure including healthcare, education, and public services remains underdeveloped compared to Western European standards. Healthcare quality varies significantly by region, with urban centers offering better services than rural areas.
Internet and telecommunications infrastructure is generally good, supporting remote work and digital nomad trends that could benefit property demand. Road networks are improving but still lag behind Western European standards, particularly in rural areas.
Infrastructure quality directly impacts property values, with well-connected areas commanding higher prices and better rental yields. Properties near major transport links, quality healthcare facilities, and good schools maintain stronger value appreciation than those in poorly serviced areas.
What property taxes, transaction fees, and ownership restrictions exist for locals and foreigners in Bulgaria?
Bulgaria offers relatively straightforward property ownership rules with moderate transaction costs compared to many European countries.
Transaction costs include a property transfer tax of 2-3.3% of the property value, typically paid by the buyer, plus notary fees of approximately 0.1%. Capital gains tax applies at 10% for profits from property sales held less than three years.
EU citizens enjoy full property ownership rights, including land ownership, with no restrictions on purchase quantities or locations. Non-EU foreigners can buy apartments and commercial properties but need to establish a Bulgarian company to purchase houses with land or agricultural property.
Agricultural and forest land remains largely restricted to Bulgarian citizens and EU nationals, with some exceptions for investment projects. Annual property taxes are low, typically 0.1-0.45% of the property's tax assessment value.
Inheritance taxes are minimal for family members, making Bulgaria attractive for generational wealth transfer. The straightforward ownership structure and moderate costs make property transactions relatively accessible compared to countries with higher transfer taxes or complex ownership restrictions.
How easy is it to rent out property in Bulgaria, and what are the average rental yields?
Bulgaria's rental market offers stable opportunities with moderate yields, though returns typically trail higher-performing European markets.
Average gross rental yields range 4-5% in major cities like Sofia, Varna, and Plovdiv, with net yields around 2-3% after accounting for management costs, taxes, and maintenance. These returns are lower than Romania (6-9%) but comparable to Greece (3-5%).
Foreigners can rent out properties without restrictions, and the rental process is straightforward with standard tenancy agreements. Short-term rental regulations are relatively permissive, allowing Airbnb and similar platforms in most areas.
Rental demand comes primarily from young professionals, university students, and expats working in Sofia's growing tech and business sectors. Tourist rental demand exists in coastal areas and ski resorts but remains limited compared to established Mediterranean destinations.
Property management services are available and affordable, with typical fees of 8-12% of rental income. The rental market remains stable despite population decline, as internal migration to cities maintains urban demand while rural areas see weakening rental prospects.
It's something we develop in our Bulgaria property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Bulgaria versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How much new housing supply is being built in Bulgaria each year, and does it outpace demand?
Bulgaria's housing construction sector faces significant supply constraints, particularly in major urban centers where demand exceeds new development.
Annual new housing supply is limited by tight permitting procedures, limited available land in prime locations, and financing challenges for developers. Property prices nationally rose 15-18% in 2025 amid supply shortages, indicating demand exceeding available inventory.
Sofia, Varna, and coastal resort areas experience tight new build supply, driving price appreciation and maintaining strong market dynamics. Construction permits are slow to obtain, and development costs have increased due to labor shortages and material price inflation.
Rural areas present the opposite dynamic, with surplus existing housing stock and minimal new construction demand. The aging population and emigration create oversupply in smaller towns and villages.
New developments tend to focus on higher-end projects in prime locations rather than affordable housing, creating supply gaps in mid-market segments. EU funding supports some infrastructure and housing projects, but private development remains constrained by market size and financing availability.
What role does corruption or inefficiency in government and legal systems play in keeping property values low?
Corruption concerns and government inefficiency significantly depress Bulgaria's property values by limiting investor confidence and market transparency.
High perceived corruption levels create uncertainty about legal processes, property rights enforcement, and transaction security. International investors often avoid markets where bribery, bureaucratic delays, and unpredictable court outcomes are common concerns.
Inefficient government processes slow property transactions, building permits, and dispute resolution, increasing costs and risks for property owners. Complex bureaucracy can take months or years to resolve issues that might be handled quickly in more efficient jurisdictions.
These systemic issues deter foreign investment, limit market liquidity, and suppress property values below levels that might exist in a more transparent, efficient system. Domestic buyers also face challenges, but they're more familiar with navigating local systems.
EU accession has improved some institutional frameworks, but progress remains slow and uneven. Property values in Bulgaria would likely be significantly higher if governance issues were resolved and institutional efficiency improved to Western European standards.
How attractive is Bulgaria for tourism and expats compared to Croatia, Portugal, or Italy?
Bulgaria offers authentic experiences and exceptional value but trails established destinations in tourism infrastructure and international recognition.
Bulgaria's attractions include mountain resorts, thermal spas, Black Sea beaches, and historic cities, all available at costs significantly lower than Croatia, Portugal, or Italy. The country appeals to budget-conscious travelers and those seeking less crowded, authentic experiences.
Tourism infrastructure remains underdeveloped compared to Croatia's Adriatic coast or Portugal's Algarve region. International flight connections are fewer, accommodation standards are variable, and English-language services are less common.
Expat life in Bulgaria is highly affordable, with good quality of life in cities like Sofia, Plovdiv, and Varna. However, salaries, healthcare systems, and amenities lag behind Western European alternatives, limiting appeal for many professionals.
The country is gaining popularity among digital nomads and retirees seeking affordable European living, but expat communities remain smaller than in Portugal, Spain, or Croatia. This limited international recognition affects second-home demand and property values in resort areas.
Bulgaria's value proposition is strong for price-conscious buyers, but it hasn't achieved the premium positioning of Mediterranean competitors.
What are the long-term forecasts for Bulgaria's real estate market?
Bulgaria's property market is forecast to experience moderate growth through 2025, with urban areas significantly outperforming rural regions.
Property prices are expected to rise 3-10% annually through 2025, driven by Eurozone accession prospects, continued foreign investment, and urban supply constraints. Sofia and coastal regions show the strongest growth potential due to economic development and tourism demand.
Eurozone entry, expected in the coming years, could provide a significant boost to property values through currency stability, increased foreign investment, and improved financing accessibility. EU structural funds will continue supporting infrastructure development.
Rural areas face continued challenges from population decline, aging demographics, and surplus housing stock. Properties in smaller towns and villages may see flat or declining values as demand shifts to urban centers.
Long-term risks include persistent demographic decline, governance challenges, and competition from other emerging European markets. However, Bulgaria's EU membership, strategic location, and value pricing position it well for moderate growth if institutional improvements continue.
It's something we develop in our Bulgaria property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Bulgaria's property market represents a compelling value proposition for European real estate investment, with prices 40-60% below Western European averages and growing urban markets offering solid returns.
While challenges exist with demographics, infrastructure, and governance, the combination of EU membership, Eurozone prospects, and affordable pricing creates opportunities for informed investors seeking European property exposure at entry-level prices.
Sources
- Average apartment price per sqm Sofia
- Average apartment price Bucharest
- Tinsa Property Prices Spain
- Global Property Guide Bulgaria Rental Yields
- Bulgaria Population Decline Analysis
- Bulgaria New Home Prices Forecast
- Sofia Price Forecasts
- Bulgaria Real Estate Market
- Bulgaria Average Monthly Salary Q2 2025
- Bulgaria Lowest Purchasing Power EU