Bulgarian Real Estate 2021

If you are thinking about buying real estate in Bulgaria, you need to get the necessary information before making an important decision.

This video will also be useful for those who are already on their way to purchasing real estate in Bulgaria, or are already in the process of doing so, to help them prioritize their options. Please note that we do not work in the real estate or tourism industries, so the information in the video is as is, without any distortions.

All real estate purchases in Bulgaria can be divided into three main groups.

Real estate groups

1. Purchase of real estate for permanent residence in Bulgaria.

2. Purchasing a property that is only planned to be used occasionally, for recreation.

The rest of the time the property is empty or, at best, rented out.

3. Buying real estate as an investment.

That is, you do not intend to live in it yourself, but are buying it for the purpose of renting it out and generating income, or in anticipation of an increase in the price of the purchased property. 

Real estate for permanent residence in Bulgaria

If you're buying a property for your own permanent residence in Bulgaria, you need to approach your choice with particular care, as you'll have to live in it. 

We recommend excluding resort complexes from your search immediately. We recommend searching for properties in ordinary towns where local residents live. There are several reasons for this. They have the necessary infrastructure for comfortable year-round living. In ordinary towns, there will often be no maintenance fee (monthly fees for the entire building). And if there is one, it will be minimal.

In regular towns, transportation and telecommunications are better. You'll have a choice of internet providers. And nearby, you'll find chain stores with significantly lower prices and a much wider selection than in resort stores.

There will also be schools, kindergartens, medical and sports facilities, and so on, the choice of which depends on the specific locality. An additional advantage of this option is that such properties can be rented or sold at a higher price if needed. This is problematic for apartments in resort areas. For example, at the moment, in Sunny Beach, some apartments are being sold for half price because they need the money, and demand is weak. This isn't the case in regular cities, where demand is always stable and significantly higher.

It's important to keep in mind that central heating and gas are virtually nonexistent in Bulgaria. With a few exceptions, heating is provided by electricity. Electricity prices are higher. Therefore, choosing your floor is crucial. The higher the floor, the warmer the apartment will be. Electricity consumption varies significantly depending on the floor. Electricity costs can vary by hundreds of euros per month depending on the floor.

In Bulgaria, the first floor is usually the second. However, we don't recommend rushing to buy an apartment on that floor. In Bulgaria, ground floors, also known as "parter," are often occupied by offices and shops, which are typically poorly heated or not heated at all. The office might not be operational, so your floor will be above the street. We had an apartment like that where we had all the air conditioners on full blast, but it was still cold. Then we found a warm apartment where you can get by with almost no heating in the winter.

What's the mystery? Bulgaria is located in the south of Europe. For example, Varna is located at a latitude further south than Gagra. Therefore, the sun provides significantly more heat, even in winter. Your electricity bill is affected by the orientation of your windows; south-facing windows are preferable because, again, they're cheaper to heat in winter. 

A common practice observed in Bulgaria is to buy an electric blanket, which the apartment owner sleeps in, and not heat the apartment at all in order to save money.

Obviously, this causes dampness and, consequently, mold, so choosing the right floor is crucial in Bulgaria. However, keep in mind that the price varies significantly depending on the floor, although the best floors tend to sell out first. It's also worth considering the neighborhood where you're planning to buy, as this significantly affects the price. Some neighborhoods are home to so-called ethnic minorities. Before buying, inquire about the availability of internet providers in the building. If there's only one, this should be a red flag, as the price will likely be inflated. 

Before buying, be sure to check all the parking details. Ideally, buy a parking space, especially if you're in a large city, especially close to the center. Otherwise, you might have to park your car in a paid lot far from home. In Bulgaria, a higher percentage of the population owns cars, and the built-up area is larger, making it much more difficult to find parking. 

Holiday properties in Bulgaria

Ideally, you should purchase a vacation home in the same location you would for permanent residence, meaning you should look for housing in regular towns or villages where local residents live. However, such housing is significantly more expensive. Because of this, many people still buy resort properties in complexes. When choosing a cheaper option, consider the considerable maintenance fees for your property, which accrue throughout the year, as well as the costs of electricity and water, equipment, and repairs. Renting such a property will be more difficult, especially outside the holiday season. Therefore, it won't offer much of a benefit compared to renting a similar apartment or staying in a hotel during your vacation. 

Keep in mind that when purchasing a resort property for recreational use, you will have to travel to the same place year after year, and perhaps after some time you will get tired of it and start thinking about selling.  

For the amount you pay for an apartment, you can spend 10-15 years vacationing luxuriously in different places around the world, instead of going to the same place year after year.

Bulgarian real estate for investment

When purchasing real estate for investment purposes, research the rental demand in your intended location. As a reminder, there is high and stable demand for rental housing in large cities such as Sofia, Varna, Burgas, and others.

Resort properties located in complexes are practically useless as an investment. Don't expect significant price increases, but a price drop is quite possible, and in some cases, the drop can be dramatic. Sometimes, owners sell for half the price to recoup at least part of their investment. Renting such apartments will be more difficult, especially outside the holiday season.

We still have questions from our viewers. We decided to put these questions to a professional real estate agent who specializes in selling real estate in Bulgaria.

Realtor answers questions

What types of real estate are there in Bulgaria?

The same as everywhere else: apartments, houses, land plots, hotels, commercial real estate.

Is it possible to buy a house with land in a village?

Yes, of course, it's possible. There's one small catch: the house is purchased in the name of an individual, and the land in the name of a legal entity if the buyer is not an EU resident. 

It would be interesting to see such a house as it looks in reality. 

Please, let's go to a unique village near Varna and see several houses in various price ranges. The village of Rogachevo is located 20 km from Varna and 5 km from the sea near the resort of Albena.

A distinctive feature of this village is its large percentage of foreign residents. New housing development is currently underway.

Let's take a look at this house, which has three levels. There's a balcony on this level. There's also a plot of land that could be used to build a swimming pool, for example. 

The neighboring house, inhabited by Russian citizens, was built by an English writer and his Ukrainian wife. Zhirinovsky's neighbor. Yes, Zhirinovsky's neighbor's house in Moscow.

And here is the second property.

What neighbors...

People understand that the most important thing here is the plot and the building permit. The house itself can either be restored or removed and a house built on its foundation. When you buy a vacant plot, it takes another six months to obtain all the permits for water and electricity. This also requires considerable energy and financial costs. Therefore, it's easier to buy a plot like this with a house already in place and build it. It's better to buy an empty plot for the same price and then shell out another 10-15 thousand euros for electricity, water, and permits. And all this takes 6-7 months of paperwork. It's very slow here. 

If you don't want to buy a ready-made house, you can purchase a plot of land and build your own house.

Roman also showed us areas for development.

The plot is 14 acres. A prime example of a plot that costs twice as much as the previous one, where we rented a house. But here, in addition to the price, you'll also have to spend money on permits and about six months to obtain a building permit and connect electricity. So, if the plot with the house cost 20,000 euros there, then here, in addition to the 33,000 euros price, you'll also have to spend an average of 10,000-15,000 euros to prepare all the paperwork. 

What should you pay attention to first when buying real estate?

But here, as with everything, it's worth paying attention to the condition of the property and the documentation available. Make sure the owners showing the house are the actual owners...

What are the features/differences in buying real estate in Bulgaria?. 

There aren't any specific features, just like everywhere else. You look, you like it, you buy it, and the paperwork is the same as in any other country. The only caveat is when buying land, because if you're not an EU citizen, you'll need to set up a company. Plus, most land plots have plans for widening roads or streets. Therefore, the state takes away part of the land. If it's more than 20% of land, they'll pay you the portion they've taken away, but at their own valuation. And accordingly, you should base your purchase on this. For example, if you buy a 1000-square-meter plot, it's entirely possible that they could take away one hundred square meters. This determines the type of house you can build and the tax rate.

Are there any special features to buying property by the sea?

There aren't any specific features as such. The only thing to keep in mind is if you're buying an apartment or house in a resort area like Varna or Burgas. There are certain towns there where grocery stores aren't open year-round, only from May to October. That's the only special aspect, a downside I'd say. If you own an apartment or house there, you'll have to travel 20-30 kilometers to get groceries during the off-season.

What are the real price ranges for real estate in Bulgaria? For one-bedroom apartments, two-bedroom apartments, city houses, and rural houses.

It all depends on the area. For example, if you choose the Varna region, prices there range from €600 and up on the resale market. But in Burgas, for example, in Sunny Beach, prices there are very low. You can find apartments there for as little as €400 per square meter. And if you choose Sofia, prices in Sofia are much higher than in Varna, with prices there reaching €800-900 and up per square meter.

How to buy real estate in Bulgaria correctly? (for residents of Russia, Ukraine, and other countries).

The most important thing is to look, don't be afraid to ask questions, and see as many lots, apartments, and houses as possible. This way, you'll have a choice, and have an understanding and vision of what you want. And the best thing is when you walk into a property, be it a house or an apartment, and if you feel something inside: "Wow!" Then that's it, stop looking at anything else and stick with this one. 

How to pay for real estate in Bulgaria?

However, payment for real estate is only accepted via bank transfer. A cash deposit is permitted, but it's limited to up to €5,000. Anything over €5,000 is only accepted via bank transfer. 

How to sell real estate in Bulgaria?

If you live in Bulgaria, this isn't difficult. Advertise online or contact a real estate agency that will guide you to your clients. If you don't live in Bulgaria, it's best to have a trusted person, either friends or relatives, or a company with whom you can enter into an exclusive agreement. Leave the keys with them, and they will show and sell the house, plot, apartment, or property on your behalf. 

That was the last question for today.

Let's consider purchasing a one-bedroom apartment. One of the most popular options is Burgas.

As we can see, the location is excellent: the city center is on one side, and the city park and the sea are on the other. Looking further, this is the ground floor, or what we would call a clean first floor. This isn't a plus in this case, as it might be more comfortable in the summer, but in the winter, energy costs will be significantly higher and moisture issues are possible. The advantages include the proximity of a store and a bus stop, and the distance to the sea, as you can see for yourself. Price trends for one-bedroom apartments in this area—it turns out prices have even increased slightly, which can't be said for resorts.

The most popular and cheapest option right now is an apartment in Sunny Beach. A combination of factors has caused property prices in this and several other Bulgarian resorts to drop.

Here we see a one-bedroom apartment for €13,990. Let's take a closer look at this apartment; the price per square meter is €550. The location isn't ideal, but considering the price, it's reasonable. If you decide to buy an apartment in Sunny Beach, try to follow this rule: don't buy property to the left of the main road (if you look at the map in the classic orientation, north is at the top). Firstly, it's really far from the sea, and secondly, you'll constantly have to cross the main road. There is an overpass, but you have to walk a bit further to get to it. Therefore, the walk to the sea will be even longer.

The apartment in question adheres to this rule and is located significantly to the right of the highway, closer to the sea, and even to the right of the second busiest road in Sunny Beach. The maintenance fee is €480 per year, which is neither expensive nor cheap for a resort complex; it's an average price. Among the advantages are the proximity of a store and bus stop, and the southern location. You can see the distance to the sea yourself, but it's usually underestimated; it's best to check for yourself. For this price, don't expect to find a property on the beachfront. 

Let's look for something cheaper, is there one?

Here's a property even cheaper, over €2,500! €480 per square meter. Well, the location is very far from the sea and, in fact, not in Sunny Beach, but beyond its boundaries, right in the middle of nowhere, which is completely unacceptable for most. Therefore, saving a couple of thousand euros could turn into big trouble. We see that both apartment options are on the ground floor. If you only live in the apartment in the summer, this is actually a plus—it won't be too hot and your energy bills will be lower. However, in the winter, it will be cold and damp, and you might need to do more renovations. 

A villa in Sunny Beach will cost you from 50,000 euros in a gated complex.

But if you take a closer look at the ad, you'll see that the distance to the sea is 3 km, and the maintenance fee is 10.50 euros per square meter, which works out to 1,323 euros or lev per year. 

A villa in the prestigious resort of Sveti Vlas costs from 115,000 euros.

Long-term lease agreements are typically concluded for 1 year.

Please note that the prices listed above are the lowest, and such properties sell out quickly. There are likely to be some drawbacks. 

When searching for real estate, we use the largest real estate website in Bulgaria, Imot.bg.

Is it dangerous to buy property in Bulgaria?

Now that you've found what you were looking for, the next step is actually purchasing the property, registering ownership, and paying for it. Don't relax here.

To safely buy real estate in Bulgaria, you need to thoroughly check the property legally, especially for collateral. Selling property with a bank lien is a Bulgarian know-how. If you visit Russian-language social media groups, you can read stories about people who have found themselves in trouble. They bought apartments in Bulgaria. And then, sometimes years later, bailiffs came to the unsuspecting owners with an eviction order, because their apartment was transferred to the bank. It turns out that Bulgarian law stipulates that a notary is not required to check the documents for the apartment being purchased, including whether it is mortgaged, before completing the transaction.

All responsibility for the transaction and document verification falls on the buyer. Over time, the scammers refined their scheme. The seller would obtain a certificate stating that the apartment was not mortgaged, and the sale and purchase transaction would take place with a notary the following day. However, the scammers would take out a bank loan overnight, secured by the apartment, and sell it to the new owner the following day, thereby receiving two prices for the apartment. Clearly, this is a complete criminal scheme. There have been cases involving government officials and notaries, but it operated successfully for many years in Bulgaria. Now, they seem to be trying to restore some order. However, we recommend thoroughly checking the property before purchasing for any mortgages or hidden debts. 

Also, if you're buying a ready-to-move-in apartment, check for Act 16. Is the apartment directly connected to the electricity and water company? Is there a subscriber account, or is the connection arranged through the developer? This will prevent you from spending years chasing leads and seeking justice.

I'd also like to point out that good apartments in well-located buildings sell out relatively quickly; when a property is ready for delivery, there are very few available apartments, and what's left are usually unmarketable. 

The best option is to find a professional realtor you can trust and also hire an independent, competent lawyer who is not affiliated with the seller and who should thoroughly check the entire history of the property you're buying. Don't be lazy; gather information from multiple sources and take the time to do so. Purchasing a property with a mortgage from a Bulgarian bank can serve as an indirect guarantee of a clean transaction. In this case, the bank providing the loan will also have an interest in ensuring you don't end up with a mortgaged apartment; the bank will be obligated to thoroughly check the property. 

If you're buying a new building during the construction phase, be sure to research the developer thoroughly. What percentage of projects are fully completed and delivered? Were there any unforeseen circumstances, and if so, what were they? We generally don't recommend investing money during the construction phase, especially at the initial stage. An exception might be a symbolic deposit, which you're willing to fork out in advance. Even an ideal developer with an impeccable reputation can suddenly go bankrupt, and where will you then find your money? 

But be warned: even following all these measures, you can't guarantee a safe real estate purchase in Bulgaria, and the risk of potential problems in the future remains. A real estate buyer is a tasty morsel for scammers and other crooks. But you have the power to minimize the risks.

Maintenance costs

Real estate costs in Bulgaria consist of two components:

1. annual tax;
2. support fee.

All real estate in Bulgaria is subject to tax. Agricultural land and forests are excluded. Foreigners who purchase real estate automatically become taxpayers.

The tax rate is set by the specific municipality where the property is registered. It ranges from 0.15 to 0.251 TP3T of the property's cadastral value (501 TP3T below the market value).

Maintenance fees are regular charges for housing maintenance. They are paid directly to the management company. For gated communities, this is a mandatory expense. The fee can be fixed or calculated based on the property's square footage. Typically, one square meter of an apartment costs the owner €8-12 in maintenance fees. The higher the class of the complex and the broader the package of services, the more expensive the maintenance.

(Question and Answer)

Is it worth buying property in Bulgaria now? 

If you've chosen Bulgaria, then yes, it's worth it. Prices for ordinary real estate are currently stable and not inflated, and in the resorts, prices have even generally dropped.

Prices are attractive now, but will they double with the arrival of the Euro? 

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

Can I get a mortgage to buy property in Bulgaria?

Yes, you can, if you have official status in Bulgaria. With temporary residence, the interest rate at Bulgarian banks was 5% (but due to the coronavirus, banks suspended lending). With permanent residence or Bulgarian citizenship, the mortgage rate is currently around 3%. To apply for a mortgage at a Bulgarian bank, you need a salary certificate and a down payment of 15-20% of the purchase price. 

I hope this information was helpful and will help you make the right decision.

Video version of the article:

https://youtu.be/PWWjHVW0DSo