Real Estate in Bulgaria 2024: Analytics and Interview with an Expert on Trends and Investment Opportunities

What is this article about?

In this article we will tell you what you can rent or buy and for how much. An experienced realtor will answer the most pressing questions. We will understand the current situation on the real estate market , the phenomenon of Sofia , and look into the future.

The situation on the real estate market in Bulgaria

The capital of Bulgaria, Sofia, is among the top ten fastest growing housing markets in the world. According to the Global Residential Cities Index, real estate in Bulgaria has increased in price by one place in the last 12 months alone. Tokyo is in 15th place in this ranking. Milan is in 30th place. Zurich is in 46th place. Warsaw is in 50th place. Stockholm is in 107th place, where real estate has fallen in price by 14.3% over the past year. And Ankara tops the ranking. Here, prices have soared by 105.9% over the past year.

Bulgarian Real Estate Photos and Iconography

If you look at ads for the sale or rent of real estate in key cities, you will immediately notice the prices that have skyrocketed since 2020. Here we see that on average, in the Serdika quarter of Sofia, a three-room apartment cost an impressive 22 February 2022. And if you look at the price history for a longer period, you will see another price peak. However, it does not reach today’s level. This peak occurred during the time of Bulgaria’s entry into the European Union and the time following this event.

And in Varna, the average prices for three-room apartments in the city center at the beginning of 2021 were around 80,000 euros, and have now risen to other neighborhoods and in other cities.

The situation is about the same with rental prices. In 2021, the average rental price for a three-room apartment in the center of Varna was 297 euros, now it is about 600 euros. The price has literally doubled. In Sofia in 2021, a three-room apartment in the center was a little over 500 euros, now it is 665 euros. It is clear that the situation will differ depending on the city and neighborhood, but the trend towards rising prices is evident. On the other hand, the number of sales transactions, the number of sales has been declining since 2020.

Apartment for rent in Bulgaria

Welcome to the Bulgarian apartment! By Bulgarian standards, this is a three-room apartment. In our country, it is considered a two-room apartment, since there are only two bedrooms. This apartment is for rent. It is located in a good area of ​​the city, not far from the sea. The area of ​​this apartment is 70 m². It has all the necessary furniture and household appliances. An electric boiler for hot water is nothing new here, in Bulgaria this is a common occurrence. But the special feature of this apartment is the presence of a shower cabin, which is rare in Bulgaria. Such an apartment is considered an above-average apartment here. The rent for such an apartment will cost 1,300 leva.

Apartment for sale in Bulgaria

And this apartment is now for sale. The living area of ​​the apartment is 129 m² and there is also a large terrace of 65 m². And also, as they call it in Bulgaria, “common areas” – 12 m². Almost 200 m² in total. The apartment is located in this place (in the photo). A large living room, which is divided into zones: a kitchen and a recreation area. There are the necessary household appliances, a washing machine, a dishwasher, a stove with an oven, an extractor hood and a refrigerator. There is also furniture. In this room, there is an entrance to one of the balconies. In Varna, this is a rarity, an apartment with three bedrooms at once. This is what one of the bedrooms looks like, there is a closet. The peculiarity of this apartment is that there are two bathrooms at once. And one of the bathrooms even has a bathtub, which is very rare in Bulgaria. The price of such an apartment is 189,000 €.

Our viewers have asked us questions about real estate. We decided to ask professional realtor Tatyana Nadtocha these questions. She has been involved in real estate in Bulgaria, in particular in Varna, for over 10 years. She has over 100 successful sales and over 700 real estate rental transactions under her belt.

Can a foreigner buy real estate in Bulgaria?

Yes, you can buy real estate in Bulgaria, but to do this you will need to open an account in a Bulgarian bank.

The first steps to buying an apartment, where to start?

Start with the simplest thing, come to Bulgaria. And the most important thing is to decide where exactly you want, that is, where exactly a person wants to buy an apartment or a house or a plot of land. Feel this place, understand, see what kind of people live there. This is very important. When faced with such advertising, what they write, describe, what beautiful nature there is, how everything is good and wonderful. In fact, there may be, let’s say, some problematic neighbors. Yes, that is, you need to choose a place first of all, start looking for real estate by price with the help of a realtor. If a person has strong nerves and a lot of time, you can try yourself. But again, it is better to have a person next to you who will speak Bulgarian, communicate with sellers in Bulgarian.

Typical mistakes buyers make when buying real estate

One of the most common is either too quick decision-making, that is, people have not seen the market, have not seen the offers, but very quickly make a decision to buy, in the heat of the moment, so to speak. Or the opposite situation. When people postpone making a decision for a very long period. While they think, while they weigh the pros and cons. Good options go away. Therefore, a golden mean is needed here.

It happens that we really did go into an apartment. It is very good. It meets all the parameters that people told me. The price is attractive. Then yes, then there is no point in looking for something else, you need to make a quick decision. Well, that’s about 10% out of 100. My advice to people, future buyers, is not to rush, but not too much, and not to think for long. And again, if they work with a professional, then of course, you need to listen to the advice of the real estate agent. We look at real estate differently, we know all the pros and cons. We can go in and immediately understand. Which side of the world the windows face, and so on. There are nuances.

Of course, they don’t take into account Bulgarian peculiarities. We are used to a slightly different quality of housing. The market and real estate here are different. After all, the climate is different, the construction features, so to speak, the layouts are different. And comparing is a big mistake, by the way. I come across it very often. But I had such an apartment in Ukraine. I want one like that. That is, looking for the same, similar, you may never find. That is, you need to adapt to those conditions, to those realities that exist today.

How long does it take to find and register ownership of real estate in Bulgaria?

Personally, I will talk about my statistics. Well, work with buyers usually takes place from the moment of meeting with buyers to the final deal. That is, until the deal itself, as a rule, it takes from 3 to 6 months. Sometimes it is a little faster, sometimes a little longer. But again, it depends very much on the initial outgoing parameters, budget, area, condition, and so on, and the market, actually. To find an apartment, and as a rule, a minimum is needed, this is the very minimum – this is about a month.

At most, it depends, let’s say, on the mood and patience of both the broker and the buyer. But by the way, I have one story where we bought what we wanted. We, I say, me and my clients, well, we bought the apartment of our dreams. Let’s say, after 5 years. The task was set 5 years ago and when I finally had such an offer. I didn’t even advertise it and immediately called my clients and said, here is what you want. Let’s go and see it and that’s it. We literally made a decision in 2 days and bought it. But it was worth it.

The fastest deals I’ve had were within 3 days. That is, even within half an hour, that is, a person came in, saw, and said: I’ll take all this. That is, it happens. Well, as a rule, it’s an average statistical value. But again, I’ll repeat, it’s from 3 to 6 months. This includes searching, and registration, and all the registration. In fact, if the registration is standard, it takes about a month. Some people, when they come, they think… There are even questions like, can we pay with a card, that is, I paid for the apartment with a bank card. Of course, you can’t.

Advice for buyers from an experienced realtor

Be sure to pay attention to the floor. This is the first basic rule. That is, the apartment should not be on the ground floor, that is, on the ground. They exist, they are bought, but they are bought, as a rule, for recreation. In the summer they came, rested, left. Again, the purpose of the purchase is important here. If the apartment is needed for living. Then you need to choose an apartment not on the first floor. Why? Because in Bulgaria there is often no central heating to which we are accustomed. Well, in large cities, there is an exception to the rule – this is Sofia, that is, there often, in most houses there is central heating.

In cities like Varna, Burgas, Plovdiv and so on there is no central heating. Heating is done with the help of air conditioners. We don’t have temperatures here: -30 and -20 don’t even happen, that is, the coldest winter is the coldest temperatures that I remember. Yes, the lowest temperatures that I remember were somewhere around -12 -15° maximum. But that’s just 1-2 days there and that’s it, for the whole winter. At the same time, air conditioners, of course, they don’t give such heat.

Therefore, I repeat, the first floor is not, and the last floor should be considered with caution. Because again, the last floors. There may be leaks over time and again, it is cold in winter, colder than in an average apartment, and it will be hot in summer. And you should try to look not at the corner, but at some apartments. Where you will have, let’s say, on the right, on the left, below, above you will have neighbors who will heat you. Absolutely right.

Well, if it’s absolutely impossible. That is, if you really liked the apartment. And it’s on the corner. Then you need to make sure it’s on the south side, preferably. Like south, southwest, southeast, that is, where the sun is. My recommendation to people. If possible, look at the apartment both in the morning before lunch and after lunch. Again, come a second time, look. Because you will live in this apartment not only in the morning, yes. When you look at it with a realtor. It’s possible, a good realtor can easily show two or three showings to understand.

What is the best way to search for real estate, on your own or with a realtor?

I can say that there is no clear-cut option here. Despite the fact that I am a realtor. Yes, as any other realtor would probably say: yes, yes, only with a realtor. Here you need to look at the situation. If you have been living in Bulgaria for a long time, then you already know the market well. I mean that you understand the areas of the city well, you see what construction is going on, how someone is building. You visit friends. Well, in general, you have some experience of finding it. And already based on this experience. Why not.

It is possible, but again you need to have a person who can legally accompany you in this transaction. If there is time, again, it takes a lot of time. Just to filter out unsuitable options. As a fairly experienced realtor, I can already understand from the photos, from the description what is being discussed and if this option does not suit some parameters, we will not even go there. If a person thinks that he has enough of this knowledge, then please, why not. It is possible, but if you want to save time, money and most importantly nerves, to avoid some troubles in the future. After the purchase, of course it is better to contact a professional.

What are the realtor’s commissions?

This is 3% without VAT, that is, you should always pay attention when signing a contract with a real estate agency. Pay attention to the fact that 3% is indicated without VAT, that is, in fact, with VAT it will be a purchase of a purchase. When for rent? And when you rent out 50% of the monthly rent. And in Sofia? There, everyone dances as they want. I talked to a Sofia realtor and she told me. She says, Tanya, in Varna you know each other. You know who works how, who has been working for how many years. We generally take care of our reputation. And Sofia is a big city and there are a lot of one-day agencies that enter the market, work, and close. In my opinion, there is chaos there.

What is the current price range for real estate in Varna?

There are apartments, including one I am selling, which costs half a million euros. In general, there is, let’s say, no limit to perfection. You can find something for 3 million, there are quite expensive offers. When people write me requests that we have 30,000 dollars, can we buy an apartment in Varna? I say, no, we can’t. Unfortunately, this is the cost of a garage now in Varna. A budget of 30,000 dollars in Varna, it is impossible to buy anything.

At least to buy an apartment with at least one, at least one bedroom. A living room like here, a living room and one bedroom. In a normal area. You need to start with an amount of about 100-120,000 euros and also be patient. Because even with this money there is no guarantee, it is not a fact that we will immediately find something suitable. The average price per square meter is now in a good, I mean a good area. This means that the area that is close to our park, to the sea, that is, not a residential area. The price starts somewhere from 1,500 euros and up per square meter.

What is the current rental price range in Varna, minimum, average price?

Average price, if with one bedroom, that is, a living room and a bedroom. It has a kitchen and usually a fold-out sofa. That is, let’s say a family with a child can rent such an apartment. Which we will talk about now about the price of such an apartment. A living room and one bedroom, the price varies again from area to area, the area and the condition greatly affect that is. The minimum price is somewhere around 300 euros, the maximum is no limit. There are apartments that are 1,000 euros and higher. Well, the average, that is, can you find it somewhere in the area is this a long-term? Yes. On a daily basis, it will cost 30-40 euros per day minimum, that is, we are talking about the minimum limit. Yes, we are not talking about some super-luxury or there in walking distance to the sea. That is, this is an average area, the average price is 30-40 per day. utilities. Utilities, as a rule, are separate and are calculated by meters. Includes water and electricity.

Which areas in Varna are considered the most expensive?

The most expensive area is the Greek Mahalla, in Bulgarian it sounds like “Gritska Mahala”, I will say it in Bulgarian. Because when people look in search engines, so that they understand what they need and look in Bulgarian. The Opera area. It is called Opera because the Opera Theater is located there. This is the “Ideal Center” of the city. The “Municipality” area is also the center of the city. “Vins” is the University of Economics, it is also a small area, but it is around this university. Then there are “Generalite”, “Okruzhna Bolnitsa”. This is all that is located if you open a map of the city of Varna. This is all that is within walking distance to the park. That is, these are the most prestigious, the most expensive areas, but again, I will repeat once again, the most expensive area is the Greek Mahalla. In the Greek Mahalla, prices now start at 2,000 euros. This is generally in the best case, there are already new buildings that even at the construction stage are 3,000 euros per square meter.

Is it possible to buy real estate with Act 15? And what is the difference from Act 16?

There is industrial current, that is, in this house the current is not yet household, it is at industrial rates. According to the Law, in such a house, in general, it is not even allowed to carry out repair work. I mean that private individuals, that is, people are not allowed to go there and do any repair work there.

It is possible to buy such an apartment. This is not an obstacle to buying, but you need to understand that when buying an apartment on act 15. You will need to wait for some certain time. As a rule, these terms are very vague, and until the moment the house is put into operation, that is, until the moment of receiving act sixteen, and if earlier it was economically financially justified, such a risk. There was a price, in general, cheaper and much cheaper on act sixteen, but now this difference is very small. Let’s say somewhere around 100-150 euros per square meter can be saved.

An apartment should be purchased only from a builder who already has a good reputation and quite a lot of experience, including the risks of not completing the construction. What terms do they promise? If it is a new construction company that has not built anything yet. I would not buy an apartment in such a house from such a builder. If it is, for example, some already well-known one, that is, there are quite a lot of them now, and if the apartment is being built by such an investor who has everything in order with previous constructions and no problems. And again, if the house is almost already sold.

There are a few houses in Varna. They are still on the fifteenth act, but there are no free apartments there. It is all sold out, you can buy there without fear, but you just need to be patient and wait until it is finished. Because they do not let you in, you want to, you have already bought and you want to do repairs. But you cannot do it because they simply will not let you in. You understand, that is, you need to sit and wait until they receive the sixteenth act and then.

How much does it cost to maintain real estate, annual expenses?

Property maintenance, what is included. If it is a regular apartment building, then as a rule it is just a property tax. And garbage removal is paid. You can pay it in advance at the beginning of the year, there will be a 5% discount even on this. This amount of tax can be paid in two stages during the year. I can tell you with an example. Yesterday I paid one of my clients. So she has a 70 square meter apartment. I paid 70 euros.

Bulgaria is actually very attractive in this regard. Because many people like to compare Bulgarian real estate with Spain and Alicante. But they forget what taxes there are and what taxes there are when you want to sell this real estate. Here you also need to take into account such a factor that the apartment can be in a so-called gated community. Then there is a maintenance fee. It is paid either monthly. By the way, I recommend doing this, because it is not so painful. Let’s just say that the amount accumulated is not that big.

What is a support fee, why is it charged and what does it include?

The maintenance fee in Bulgaria includes security, video surveillance, sometimes there is a swimming pool, a gardener and something else. These are the services. The maintenance fee is usually 10 dash 12 euros per square meter per year. That is, if the apartment is 100 m², then for a year it is 1,200, so pay attention to this when you buy an apartment. Yes, again, you are paying for comfort. You are in a closed area, in a guarded area. You have a swimming pool in the summer, there is a playground on the territory. There are, let’s say, such tasty moments for which, in general, people are ready to pay. It is imperative to inquire about what the maintenance fee is. Because sometimes it happens that there is an apartment, for example, in Sunny Beach, in Sveti Vlas at very good tasty prices. Well, they keep quiet about the fact that there is a large maintenance fee. Why a tasty price? Because people there are apparently tired of paying this fee, they want to sell it faster.

Does purchasing real estate in Bulgaria give the right to obtain a residence permit?

Buying real estate in Bulgaria does not automatically give the right to obtain a residence permit. But it can certainly be an advantage. Because when people apply for a D visa. This is the first step. To obtain a residence permit, you need to get a D visa at the embassy. And when people apply for a D visa, they are required to provide a rental agreement. Where will you live? You must show where you will live in this country. Not in a tent on the beach. And of course, when you show a document that you are the owner of an apartment in Bulgaria. Of course, this will already be a huge plus for obtaining a D visa.

What are the stages of purchasing an apartment in Bulgaria?

Well, we are talking about the fact that we have already sort of decided on an apartment. Yes, we have chosen an apartment. So the first stage is to leave a stop deposit, in Russian a down payment. You need to leave a down payment on the apartment so that this apartment is not shown to the next clients and is removed from the advertisement. As a rule, we are talking about 1,000 euros. If you work with a realtor, then this is formalized by a special agreement in the agency.

The next stage is a preliminary agreement directly between the buyer and the seller, in which all the terms of the transaction, the obligations under the transaction and the terms are stipulated. This is a very important document, according to which, after signing this agreement, 10% “kaparo” in Bulgarian is transferred, that is, 10% of the deposit. Yes, that’s right. And from this moment, as a rule, about two weeks pass, sometimes more, sometimes less, there you need to look at the situation according to the documents and the intentions. The preparation of documents is already underway.

And the next stage is the actual transaction with a notary. It is necessary to take this into account. Since we are foreigners in Bulgaria. According to Bulgarian law, we must be accompanied by an interpreter. It is mandatory for transactions with a notary, that is, that’s all. After this, you are already the happy owner of Bulgarian real estate.

Why have prices risen so much and, most importantly, what will happen to real estate prices in the future?

Will they grow, stabilize or collapse? In order to answer this question, let’s get acquainted with some information about the Bulgarian real estate market. Bulgarians are among the leaders in Europe in terms of the amount of real estate, according to the National Statistical Institute. This statistic puts Bulgaria in fourth place in Europe in terms of the amount of real estate per capita. And Germany ranks last in this indicator.

The Phenomenon of Empty Apartments in Bulgaria

Who occupies housing in Sofia? Almost half of the housing in Sofia is occupied by the owner, that is, the owner himself. Another almost 6% in Sofia are occupied by close friends or relatives of the owner, usually a brother, sister, children. They live in such an apartment without rent. 8.5% of housing is occupied by people who rent housing and pay rent. 0.6% of housing is put up for rent. This housing is looking for people to live in it, this housing is in the process of finding a landlord.

The most interesting thing is that 34% of all housing in Sofia is empty – no one lives there. This housing is not sold or rented. Even if someone wants to buy or rent, they will not be able to. This situation has come to be called the phenomenon of empty houses in Sofia .

But Vidin is the leader in empty housing, followed by the city of Burgas, where more than half of the housing is empty. This situation does not benefit the cities, half-empty neighborhoods, the need to build infrastructure – transport, streets, sewerage, communications, etc. for a house 50-60% full. This is economically inexpedient.

Why is the housing not being used, sold or rented out?

Firstly, in Bulgaria, banks stopped offering interest on deposits, but on the contrary, banks started offering negative interest rates on deposits, that is, deposits as a means of income and saving have lost their purpose. And people need to keep their savings. On the other hand, banks offer mortgages with interest rates lower than in EU countries. Therefore, someone began to invest in real estate.

Secondly, the super-rich are buying.

Thirdly, speculation. They bought it cheaper and sold it more expensive. All these factors lead to the fact that housing is bought quickly and it cannot enter the free market. This creates an artificial shortage of housing offers. And as a result, the price rises. There is also another factor, some people do not rent out their empty homes because they are afraid that their interests will not be protected, because the cost of possible apartment renovation is significant.

What will happen to property prices in Bulgaria?

What will happen next? One well-known capital architect shared his experience of how he copes with this in Barcelona. Since 2019, there has been a regulation that allows municipalities to buy empty housing even without the owner’s consent for 50% of the market price. Some Sofia real estate experts refer to the experience of France. There is a double tax on empty real estate. This could possibly be the optimal solution in this situation.

By the way, Bulgaria has one of the lowest property taxes in the EU, and the estimated value of the property, from which the tax is calculated, is lower than the market value. In this way, it would be possible to fill city budgets and bring property prices to a state accessible to the majority. Making housing more affordable. Therefore, if no radical legislative initiatives appear, then prices will most likely remain at an inaccessible level for the majority, and entire neighborhoods will stand half-empty.

What are the current minimum prices for housing and rent in Sofia?

We found several listings with the lowest prices. A small, 26 m², old studio apartment in Sofia is offered for 52,000 euros. And a small studio of 24 m² is for rent for 250 euros per month almost in the center. This is the bottom of the market.

What will happen to prices with the transition to the euro?

After the transition to the euro, real estate prices will rise only slightly, if at all.

Can I get a mortgage loan to buy a property in Bulgaria?

Yes, you can. If you have official permanent residence status or Bulgarian citizenship. The rate for mortgage loans is about 3%. To apply for a mortgage loan in a Bulgarian bank, you need a certificate of your salary and a down payment of 20% of the cost of the property you are buying.

Where to look for real estate in Bulgaria?

If you want to rent or buy an apartment, then most often they search for it here on imot.BG , OLX, bazar.BG, Alo.BG. Here you can find the desired option, both from a realtor and from the owner.

I hope this information about Bulgarian real estate was useful and will help you make the right decision. Write your comments.