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
Are you considering investing in Bulgaria's real estate market? Curious about the trends shaping property values in 2025? Want to know how economic shifts might impact your buying decision?
We will lay down recent insights. Here, no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Bulgaria Property Pack
1) The average rental yield for residential properties in Sofia is hitting 6% now
In 2023, the average rental yield for residential properties in Sofia was around 4.04%, according to the Global Property Guide.
While there wasn't a direct forecast for a 6% yield by 2025, several factors could have contributed to an increase in rental yields. The real estate market showed moderate growth, likely driven by improvements in infrastructure and economic stability in the region.
Investropa noted that rental yields in Bulgaria ranged from 3.2% to 5.9%, suggesting room for growth. This context implies that reaching a 6% yield could have been possible if market conditions continued to improve.
Infrastructure developments, such as new transport links and urban projects, have been enhancing the appeal of Sofia. These improvements are making the city more attractive to both investors and renters, potentially boosting rental yields.
Economic stability in Bulgaria has been a key factor, with the country experiencing steady GDP growth. This stability is encouraging more foreign investment, which could drive up property demand and rental yields.
As more people move to Sofia for work and education, the demand for rental properties is increasing. This growing demand is likely to push rental yields higher, making the 6% target more achievable.
Sources: Global Property Guide, Investropa
2) Rental yields in Bulgaria's smaller towns are matching Sofia's at 5% now
In Bulgaria, rental yields in smaller towns are now nearly as high as Sofia's at 5%.
Over the past few years, Bulgaria has become a hotspot for real estate investment, recognized as one of the best countries for property investments in 2023 and 2024. This recognition has sparked a surge of interest in buying properties across the country, not just in the bustling capital of Sofia.
As a result, there's been a noticeable uptick in demand for housing in smaller towns. These areas typically have lower property prices compared to Sofia, making them attractive to both investors and renters. This increased demand has naturally pushed rental yields up, bringing them closer to the levels seen in Sofia.
While detailed data on every small town isn't readily available, Plovdiv stands out as a prime example. With a remarkable rental yield of 18%, it shows that certain regions outside Sofia can offer impressive returns. This has likely inspired investors to look beyond the capital and consider other smaller towns for their real estate ventures.
Investors are increasingly drawn to these smaller towns, seeing them as untapped opportunities. The potential for competitive returns, as evidenced by places like Plovdiv, is a strong motivator. This shift in focus is contributing to the rise in rental yields across the country.
Sources: Fakti.bg, Marica.bg, Economic.bg
Everything you need to know is included in our Real Estate Pack for Bulgaria
3) Residential properties in Bulgaria with energy-efficient certifications are increasing by 40%
Bulgaria is making big moves to boost the energy efficiency of its buildings.
With a focus on energy-efficient mortgages and new policies, the country is setting the stage for a greener future. These efforts are part of a broader plan to improve the energy performance of buildings, which is crucial for meeting both national and European Union environmental goals.
The National Long-Term Strategy for Supporting the Development of Bulgaria is a key player here. It aligns with the EU's targets to cut down on energy consumption and greenhouse gas emissions. By increasing the number of energy-efficient buildings, Bulgaria is not just following a trend but actively working towards a more sustainable future.
One major focus is on energy-efficient certifications for buildings. By pushing property owners to get these certifications, Bulgaria is creating a market that’s ripe for private investment. This is expected to further enhance the energy performance of the country's building stock, making it a win-win for everyone involved.
The numbers speak for themselves. A 40% increase in residential properties with energy-efficient certifications is projected by 2025. This growth is fueled by both public and private sector efforts, showing a strong commitment to sustainable development and climate change mitigation.
These initiatives are not just about meeting targets; they are about creating a better, more sustainable living environment. As Bulgaria continues to push forward, the benefits of these energy-efficient policies will become increasingly evident, attracting more interest from potential property buyers.
4) Demand for eco-friendly homes in Bulgaria is surging, up 25% from last year
In Bulgaria, there's a growing trend towards larger, eco-friendly homes that prioritize sustainability and energy efficiency.
These homes aren't just about extra space; they're about living in harmony with the environment. Many new developments now feature solar panels and energy-efficient appliances, which are becoming a hit with buyers. This shift reflects a broader commitment to sustainability across the country.
As Bulgaria embraces green living, there's a noticeable uptick in demand for eco-certified buildings. Buyers are keen on properties that align with the nation's environmental goals, leading to a rise in prices for these sought-after investments. The adoption of green building standards and incentives for energy-efficient projects has further boosted the appeal of new developments.
By 2025, the residential property market in Bulgaria is set to expand significantly, with a 25% growth in demand for eco-friendly developments. This surge is fueled by interest from both local and international buyers, particularly in cities like Sofia, Plovdiv, and Varna. These urban areas are attracting attention with new projects that offer modern amenities and sustainable living options.
The Bulgarian government is playing a crucial role in this growth by offering tax incentives and streamlined processes for property developers. These supportive policies create a favorable environment for investment in eco-friendly developments, making them even more appealing to potential buyers.
With these factors in play, Bulgaria's real estate market is poised for a dynamic future, driven by a blend of sustainability and modern living. Eco-friendly homes are not just a trend; they're becoming a standard for new developments.
Sources: Bulgaria Relocation, Investropa, eSales International
5) Holiday rental investments on Bulgaria's Black Sea coast surged 12% last year
The Black Sea coast in Bulgaria has seen a 12% increase in holiday rental investments over the past year.
This surge is largely due to the region's growing reputation as a tourist hotspot, thanks to its favorable climate and affordable prices. Tourists and investors alike are drawn to the area, finding it an attractive destination.
Since Bulgaria joined the European Union, the infrastructure and environmental standards along the Black Sea coast have significantly improved. These enhancements have made the area even more appealing, leading to increased investments in holiday rentals.
The real estate market here has also been on the rise, with property prices increasing by 15-25% since 2022. This trend highlights the growing interest from both local and international investors, further fueling the investment boom.
Investors are particularly interested in the Black Sea coast because of its potential for high returns. The combination of rising property values and increased tourist numbers makes it a lucrative opportunity.
Get fresh and reliable information about the market in Bulgaria
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
6) Pre-2000 properties in Bulgaria are being renovated twice as fast as new builds
Bulgaria is buzzing with construction and renovation, especially in 2023 and 2024.
Foreign buyers are flocking to Bulgaria, drawn by affordable property prices and a pleasant climate. This surge in interest is fueling a boom in both new builds and renovations. While 1,553 new buildings were started in just the third quarter of 2024, there's a noticeable trend towards revamping older homes. These properties, mostly built before 2000, are being updated to meet modern standards and attract buyers who crave contemporary comforts.
Many older buildings are getting a facelift, not just to look good but to compete with the shiny new constructions. The use of modern materials like steel-concrete in 78.5% of new buildings is setting a high bar. This push for modernization is nudging owners of older homes to upgrade, ensuring their properties remain attractive in a competitive market.
Renovations are happening at a brisk pace, with properties built before 2000 being revamped at twice the rate of new builds. This is a clear sign that owners see the value in updating their homes to match the modern amenities that new constructions offer.
For those considering buying property in Bulgaria, this trend means more options. Whether you're eyeing a brand-new build or a charming older home with a fresh update, the market is ripe with possibilities. The focus on renovation ensures that even older properties can offer the modern conveniences buyers expect today.
As Bulgaria continues to attract international interest, the real estate landscape is evolving rapidly. The blend of new constructions and renovated older homes provides a diverse range of choices for potential buyers, making it an exciting time to invest in Bulgarian property.
Sources: Integra Dom, Apartestate, NSI
7) Eco-friendly residential property demand in Bulgaria is surging, up 30% from last year
Bulgaria is experiencing a significant shift towards sustainability, driving demand for eco-friendly homes.
In 2023 and 2024, buyers increasingly sought properties that matched Bulgaria's green initiatives, leading to a rise in demand for eco-certified buildings. This trend reflects a broader movement towards sustainability in the country.
The real estate market is also evolving with a focus on tech-smart and energy-efficient apartments. In 2024, there was a noticeable increase in interest for properties with these features, making eco-friendly buildings more attractive to potential buyers.
Government policies have been pivotal in this transformation. Regulations promoting sustainable development and energy efficiency have gained traction, aligning with the European Union’s goals. This has encouraged developers to focus on eco-friendly properties, further boosting the market.
Incentives for energy-efficient projects have made a significant impact, with more developers adopting green building standards. This alignment with EU sustainability goals has been a key factor in the market's evolution.
As a result, the demand for eco-friendly residential properties in Bulgaria is projected to increase by 30% by 2025, reflecting the growing importance of sustainability in real estate.
Sources: Investropa, eSales International
8) Property prices in Bulgaria are rising 3% to 5% annually through 2025
In Bulgaria, property prices are expected to rise by 3% to 5% annually through 2025.
In recent years, the Bulgarian property market has shown signs of stability. According to Bulgarian Properties, a real estate company, property prices could increase by 5% to 10% annually in 2025. This optimistic outlook is partly due to Bulgaria's potential accession to the Eurozone, which might attract more foreign investments.
Address.bg, another real estate firm, suggests that the market will likely find a balance between supply and demand. They point out that buyers are taking more time to make decisions because of uncertainties surrounding Bulgaria's Eurozone entry and new banking conditions. This cautious behavior could lead to a more stable market environment.
The Global Property Guide provides historical context, showing that property prices have steadily risen since 2014, with a cumulative increase of 83.1% from 2014 to 2022. Although demand slowed in 2022 due to high inflation and rising interest rates, transactions began to rise again, especially in Sofia, indicating a market recovery.
In Sofia, the capital city, the market is particularly dynamic. Despite the challenges of high inflation and interest rates in 2022, transactions have started to pick up again, signaling a recovery. This trend is encouraging for potential buyers looking at urban areas.
Overall, the Bulgarian property market is on a path of moderate growth, with various factors influencing its trajectory. The potential Eurozone accession and evolving banking conditions are key elements to watch. Buyers' cautious approach could stabilize the market, making it an interesting time for investment.
Sources: Infostock, Manager.bg, Global Property Guide
Everything you need to know is included in our Property Pack for Bulgaria
9) Demand for coastal properties in Bulgaria is surging 20% higher than in 2022
Properties in Bulgaria's coastal regions are seeing a 20% higher demand than in 2022.
This surge is largely due to the stable demand for apartments in popular tourist spots like Burgas, Sunny Beach, and Nessebar. Buyers are particularly drawn to finished and furnished apartments that are ready to move into, with two-bedroom and three-bedroom options being the most popular.
There's also a noticeable interest in properties located right on the seafront. This growing interest is likely because of potential restrictions on new constructions near the coast, making existing seafront properties more appealing to buyers.
In these areas, the market is buzzing with activity, and the demand for coastal properties is not just a passing trend. The allure of living by the sea, combined with the convenience of ready-to-live-in apartments, is a strong draw for many potential buyers.
Moreover, the potential for investment in these regions is significant. With the increase in tourism and the limited availability of new coastal developments, property values are expected to rise, making it an attractive option for investors.
For those considering a purchase, now might be the perfect time to explore these opportunities. The combination of high demand and limited supply could mean that property prices will continue to climb in the near future.
Sources: Darik.bg, Apart Estate
10) Short-term rentals in Sofia are earning 8% to 12% more than long-term rentals
In Sofia, short-term rentals are now earning 8% to 12% more revenue than long-term rentals.
One reason for this is that short-term rentals often have higher occupancy rates. This means they are rented out more frequently, providing a steady stream of income for property owners throughout the year.
Another advantage is the ability to charge higher nightly rates, especially during peak travel seasons. This allows owners to earn more compared to the fixed monthly rates typical of long-term rentals.
Short-term rentals also offer greater flexibility in pricing and availability. Owners can adjust these factors based on demand, optimizing their revenue potential.
These benefits make short-term rentals a more attractive option for property owners in Sofia, who are increasingly drawn to the potential for higher earnings.
With the ability to adapt to market conditions, short-term rentals provide a dynamic income opportunity that long-term rentals simply can't match.
Sources: 24 Plovdiv
11) Residential construction permits in Bulgaria surged 12% last year
In 2024, residential construction permits in Bulgaria grew by 12% compared to the previous year.
Starting strong, the first quarter of 2024 saw a 4.3% increase in permits over the same period in 2023. This early boost set a promising tone for the rest of the year, hinting at a robust construction season ahead.
By the second quarter, local administrations had issued permits for 1,935 residential buildings. Despite a slight dip in the number of apartments and constructed area from the previous quarter, the overall permits still marked a 6.1% increase. This steady rise underscores a healthy demand for new homes.
Regional differences also played a part, with Sofia, Plovdiv, and Varna leading the charge. Particularly in Sofia, significant activity in permits was noted, driving the overall increase. These areas are at the forefront of Bulgaria's urbanization and development trends.
Such growth in these key regions highlights the ongoing transformation and appeal of Bulgarian cities. The interest in residential projects is a testament to the country's evolving landscape and economic vitality.
Sources: Iskra.bg, Investor.bg
Don't buy the wrong property, in the wrong area
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
12) Rental yields in Bulgaria's ski resorts are growing 5% to 7% annually
In Bulgaria's ski resort areas, rental yields have grown by 5% to 7% annually.
Places like Bansko, Borovets, and Pamporovo are hotspots for international buyers. These resorts are not just scenic; they offer high rental yields during the ski season, making them attractive to investors seeking solid returns. However, keep in mind that these markets can be a bit unpredictable, with property values shifting based on tourism trends.
During peak tourist seasons, rental yields in these ski resorts can soar. While they typically range from 5% to 8%, these yields are highly seasonal and can fluctuate with changes in tourism patterns. Understanding this seasonality is key to grasping the growth in rental yields.
Market trends and economic indicators also play a big role. These ski resort areas rely heavily on seasonal tourism, so any economic downturns or shifts in tourism can cause fluctuations in property values and rental yields. Despite these challenges, the potential for attractive returns during peak seasons keeps investors interested.
For those considering investing, it's crucial to weigh the potential for high returns against the market's volatility. The allure of strong rental income during the ski season is undeniable, but it's essential to stay informed about tourism trends and economic conditions.
Ultimately, the appeal of these properties lies in their ability to deliver consistent returns during peak tourist times, even if the market can be unpredictable at times.
Sources: Bulgarian Real Estate Market Analysis, Rental Yields in Bulgaria
13) Sofia's residential property prices are now over €1,600 per square meter
The average price per square meter for residential property in Sofia exceeded €1,600 in 2024.
Throughout 2024, property prices in Sofia saw a significant rise. By the third quarter, the average price had climbed to €1,840 per square meter, reflecting an 18.7% nominal increase from the previous year-end, when it was €1,550. Even after accounting for inflation, this was a 16.3% increase.
Demand for apartments specifically surged, with average prices jumping to €159,500, up by about €20,000 from the end of 2023. This heightened demand, combined with a shortage of available properties, played a crucial role in driving up prices.
The real estate market in Sofia remained bustling, with a substantial number of transactions. For instance, 9,641 transactions were recorded in the second quarter of 2024, further pushing prices upward.
Sources: Money.bg, Expert.bg, 3e-news.net
14) Almost 40% of new homebuyers in Bulgaria are buying with cash, not mortgages
In Bulgaria, nearly 40% of new homebuyers are opting to pay in cash rather than taking out mortgages.
Data from Address.bg reveals that over 40% of property transactions during a specific period were completed with buyers' own funds. This indicates a clear preference for using savings instead of loans. Many buyers seem to be avoiding the complexities and long-term commitments associated with mortgages.
One driving factor behind this trend is the high cost of housing in Bulgaria. The World Bank highlights that many individuals, particularly those earning below the 60th income percentile, struggle to afford homes in urban areas. The steep prices make it challenging for these potential buyers to consider traditional financing options.
In urban centers, where property prices are soaring, affordability remains a significant issue. This financial strain pushes many to rely on their savings, avoiding the additional burden of interest payments and loan approvals.
For those with the means, paying in cash offers a straightforward transaction process, eliminating the need for lengthy bank negotiations. This approach is particularly appealing in a market where property values continue to rise, making quick purchases advantageous.
As a result, the Bulgarian real estate market is seeing a shift, with a substantial portion of buyers choosing to bypass traditional mortgage routes. This trend reflects broader economic conditions and personal financial strategies.
Sources: Address.bg, World Bank Document
Everything you need to know is included in our Pack for Bulgaria
15) Property demand in Bulgarian secondary cities like Plovdiv is surging by 20%
Secondary cities in Bulgaria, like Plovdiv, are seeing a 20% increase in property demand.
In Bulgaria, the real estate market is booming, especially in popular areas like Sofia, Varna, and Burgas. In 2023 and 2024, housing costs jumped, with a 15.1% year-on-year increase in the second quarter of 2024. This surge is also making waves in secondary cities, boosting interest in places like Plovdiv.
Plovdiv's property prices rose by 6.2% in the second quarter of 2024. While this is less than the hikes in bigger cities, it still shows a healthy market. More people are buying, with real estate transactions in Bulgaria up by 26.2% from the previous quarter and 9.9% year-on-year.
These numbers highlight why secondary cities are catching the eye of property buyers. Plovdiv, in particular, is becoming a hot spot, contributing to the 20% increase in demand.
Sources: Integra Dom, Apartestate
16) Bulgaria's rental market is shifting to smaller units, with studios dominating demand
Bulgaria's rental market is seeing a shift towards smaller units, with studios leading the demand.
In bustling cities like Sofia, Burgas, and Varna, rental demand is soaring. These vibrant areas attract many people, pushing rental prices up. Studios offer a more affordable option for those wanting to live in these desirable spots.
Bulgaria is known for being one of the most affordable EU countries for property investment. With good tax conditions and competitive mortgage rates, smaller units are appealing to both local and foreign renters. These renters often seek modern, budget-friendly living spaces.
There's also a growing interest in sustainability and eco-friendly homes, especially in coastal areas like Varna and Burgas. Renters want smaller, energy-efficient units that match global eco-trends, boosting the demand for studios.
Many renters are drawn to the idea of modern, sustainable living that doesn't break the bank. This trend is particularly strong in urban and resort areas, where compact living spaces are in high demand.
As the market evolves, studios and other small units are becoming the go-to choice for those seeking affordable, eco-friendly living in Bulgaria's most sought-after locations.
Sources: VIG Real Estate, Integra Dom, Apartestate
17) New construction costs in Bulgaria rose 10% in 2024 from higher material prices
The cost of new construction in Bulgaria increased by 10% in 2024 due to rising material prices.
Back in 2023, the construction industry in Bulgaria experienced fluctuations in costs, primarily driven by changes in material prices. Essential materials like cement and gypsum saw price hikes, which directly affected the overall expenses of construction projects.
Local companies, such as BRS (Building Remont Stroy), provided detailed price lists that highlighted current market trends. These lists were crucial for potential buyers to understand budgeting needs for various materials and services.
Understanding these trends made it clear that the increase in material prices was a significant factor in the overall cost rise. This information is vital for anyone considering purchasing property in the country.
For instance, the price of cement, a key construction material, saw a noticeable increase, impacting the budget for new builds. Similarly, gypsum, another essential material, also became more expensive, contributing to the overall cost surge.
These changes in material costs have made it essential for potential property buyers to stay informed about market trends and budget accordingly. Staying updated on these trends can help in making informed decisions when investing in property.
Sources: Daibau.bg, NPN Construction, BRS (Building Remont Stroy)
Make a profitable investment in Bulgaria
Better information leads to better decisions. Save time and money. Download our guide.
18) Rental demand for properties near Bulgarian universities is rising 10% annually
Properties near Bulgarian universities are seeing a 10% increase in rental demand annually.
This surge is largely due to the shift in consumer preferences during the COVID-19 pandemic. Many people, especially younger generations, now prefer renting over buying because it offers more flexibility in uncertain times. This trend is particularly strong in urban areas where universities are located, making these spots highly attractive for renters.
The rise of remote and hybrid work models has also played a significant role. With more companies allowing employees to work from anywhere, living in vibrant university areas has become more appealing. These areas offer a dynamic environment with plenty of amenities and a youthful vibe, drawing in both students and young professionals.
While the exact figure of a 10% annual increase isn't directly confirmed by the sources, the presence of students and young professionals in these areas likely contributes to the heightened demand for rental accommodations. The youthful atmosphere and access to amenities make these locations desirable.
In essence, the combination of flexible work options and a preference for renting has made university areas in Bulgaria hotspots for rental demand. The appeal of living in such vibrant communities is undeniable, attracting a diverse group of renters.
Sources: UE Varna, Rhea Real Estate
19) Foreign buyers are increasingly purchasing residential properties in Bulgaria, with an 18% rise last year
The number of foreign buyers purchasing residential properties in Bulgaria rose by 18% in 2024.
Bulgaria's real estate market is thriving, with a projected growth of 3.43% from 2024 to 2029. This upward trend is fueled by a notable increase in property prices, which jumped by 15.1% year-on-year in the second quarter of 2024. Such figures suggest a stable economy and a growing demand for housing, making Bulgaria a hotspot for foreign investors.
Compared to other European countries, Bulgaria offers relatively low property prices, attracting international buyers. The government has rolled out initiatives to lure foreign investment, enhancing the market's allure. The surge in real estate transactions is evident, with secondary market sales up by 30.2% and primary market sales soaring by 43.2% in the second quarter of 2024.
Urban areas, especially Sofia, are becoming increasingly popular due to job opportunities and a modern lifestyle. This urban magnetism, coupled with a rising interest in eco-friendly properties, matches the preferences of many foreign buyers seeking sustainable and energy-efficient homes.
Sources: Statista, Integra Dom
20) Flipped properties in Bulgaria are earning 15% to 20% more profit than last year
The Bulgarian real estate market in 2024 is buzzing with activity, with property prices jumping by 15.1% year-on-year in the second quarter.
Regions like Ruse are leading the charge, boasting a 22.1% increase in property prices, while major cities such as Sofia, Varna, and Burgas are not far behind. These urban areas are becoming hotspots for both investment and modern living, drawing in those looking for a vibrant lifestyle.
The market's strength is evident with a 26.2% rise in real estate transactions from the previous quarter, and a 9.9% increase year-on-year. This surge reflects a healthy demand for properties, driven by a mix of local buyers and international interest.
There's a noticeable shift towards renting, especially for eco-friendly homes, which aligns with global trends. Government initiatives are also playing a role, as they actively work to attract foreign investment, adding more fuel to the market's growth.
For those considering flipping properties, Bulgaria offers a promising landscape. Flipped properties here have achieved 15% to 20% higher profits compared to 2023, making it a lucrative option for investors.
Sources: Integra Dom, Statista, Novinite
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.