Bulgarian Real Estate 2024: Analysis, Trends, and Expert Opinions

In this article, we'll explain what's available for rent or purchase and for how much. An experienced realtor will answer your most pressing questions. We'll also explore the current real estate market situation., the phenomenon of Sophia, let's look into the future.
The situation on the real estate market in Bulgaria
Capital Bulgaria Sofia entered the Top 10 fastest growing housing markets in the world. According to Global Residential Cities Index In Bulgaria, real estate prices have increased by one place in the last 12 months alone. Tokyo ranks 15th, Milan 30th, Zurich 46th, and Warsaw 50th. Stockholm ranks 107th, with real estate prices down 14.31% over the past year. Ankara tops the list, with prices there up 105.91% over the past year.

Bulgarian real estate photos and infographics

Bulgarian Real Estate Market Analysis 2024: Trends, Prices, and Forecasts

If you look at real estate listings for sale or rent in key cities, you'll immediately notice the skyrocketing prices since 2020. We see that the average price for a three-bedroom apartment in Sofia's Serdika district was impressive on February 22, 2022. And if you look at price history over a longer period, you'll see another price peak. However, it doesn't quite reach the current level. This peak occurred during and after Bulgaria's accession to the European Union.

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

The situation with rental prices is roughly the same. In 2021, the average rent for a three-bedroom apartment in central Varna was €297; now it's around €600. The price has literally doubled. In Sofia, a three-bedroom apartment in the center was just over €500 in 2021; now it's €665. While the situation will vary depending on the city and neighborhood, the upward trend is clear. On the other hand, the number of sales transactions has been declining since 2020.

Apartment for rent in Bulgaria

Welcome to a Bulgarian apartment! By Bulgarian standards, this is a three-room apartment. We consider it a two-room apartment, as it only has two bedrooms. This apartment is for rent. It's located in a good area of the city, near the sea. The apartment is 70 square meters and includes all the necessary furniture and appliances. An electric hot water heater is commonplace here; it's a common feature in Bulgaria. What makes this apartment unique is the presence of a shower, a rarity in Bulgaria. This apartment is considered above average here. Rent for this apartment is 1,300 leva.

Apartment for sale in Bulgaria

This apartment is currently for sale. The living area is 129 m², plus a large 65 m² terrace. And what's called "common areas" in Bulgaria is 12 m². A total of almost 200 m². The apartment is located in this location (pictured). The large living room is divided into zones: a kitchen and a sitting area. It has all the necessary appliances, including a washing machine, dishwasher, stove and oven, range hood, and refrigerator. Furniture is also included. This room also has access to one of the balconies. In Varna, this is a rarity: an apartment with three bedrooms. This is what one of the bedrooms looks like; there's a closet. A unique feature of this apartment is that it has two bathrooms. One of them even has a bathtub, a very rare find in Bulgaria. The price of this apartment is €189,000.

Our viewers contacted us with questions about real estate. We decided to put these questions to professional realtor Tatyana Nadtocha. She has been involved in real estate in Bulgaria, particularly Varna, for over 10 years. She has over 100 successful sales and over 700 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 exactly where you want to buy an apartment, house, or plot of land. Get a feel for the place, understand it, and see what kind of people live there. This is very important. When you see advertisements that describe the beautiful nature, how everything is fine and wonderful, in reality, there may be, say, some problematic neighbors. So, you need to choose a location first and start searching for a property based on price with the help of a realtor. If you have strong nerves and plenty of time, you can try it yourself. But again, it's better to have someone with you who speaks Bulgarian and can communicate with the sellers in Bulgarian.

Typical mistakes buyers make when buying real estate

One of the most common is either making a decision too quickly—that is, people haven't seen the market or the offers, but they make a purchase decision very quickly, in the heat of the moment, so to speak. Or the opposite situation. When people put off making a decision for a very long time. While they're thinking, while they're weighing the pros and cons, good options disappear. So, a happy medium is needed.

Sometimes we actually walk into an apartment. It's very nice. It meets all the criteria people told me. The price is attractive. Then yes, there's no point in looking elsewhere; you need to make a quick decision. Well, that's about 10% out of 100. My advice to people, future buyers, is to take your time, but not too much, and don't think too long. And again, if they're working with a professional, then of course, you need to listen to the real estate agent's advice. We look at real estate differently; we know all the pros and cons. We can walk in and immediately understand what's going on. Which direction the windows face, and so on. There are nuances.

Of course, they don't take into account Bulgarian peculiarities. We're accustomed to a slightly different quality of housing. The market and real estate here are different. The climate is different, after all, and construction features, so to speak, are different. And comparing is a big mistake, by the way. I see it very often. But I had an apartment like this in Ukraine. I want one like that. So, if you search for the same thing, something similar, you might never find it. So, you have to adapt to the conditions and the realities that exist today.

How long does it take to find and register property ownership in Bulgaria?

Personally, I'll talk about my statistics. Working with buyers typically takes from the moment we meet them to the final transaction. That is, the transaction itself typically takes between 3 and 6 months. Sometimes it's a little faster, sometimes a little longer. But again, it depends greatly on the initial parameters, budget, area, condition, and so on, and the market itself. To find an apartment, and as a rule, the minimum required is about a month.

At most, it depends, let's say, on the mood and patience of both the broker and the buyer. But I actually have a story where we bought what we wanted. We, I say, my clients and I, we kind of bought the apartment of our dreams. Let's say, after five years. The goal was set five years ago, and when I finally had such an offer, I didn't even advertise it; I immediately called my clients and said, "Hey, I have what you want. Let's go see it, and that's it." We literally made the decision in two days and bought it. But it was worth it.

The fastest deals I've ever had were within three days. That is, even within half an hour, meaning someone comes in, sees it, and says, "I'll take it." That does happen. Well, as a rule, it's the statistical average. But again, I repeat, it takes between three and six months. That includes searching, paperwork, and all the paperwork. In fact, with standard paperwork, it takes about a month. Some people, when they come, think... There are even questions like, "Can we pay with a card?" I mean, I paid for the apartment with a bank card. Of course not.

Buyer's Advice from an Experienced Realtor

Be sure to pay attention to the floor. This is the first fundamental rule. That is, the apartment shouldn't be on the ground floor, meaning it shouldn't be on the ground floor. They exist, and people buy them, but they're usually bought for vacations. They come in the summer, relax, and leave. Again, the purpose of the purchase is important. If the apartment is needed for living, then you shouldn't choose an apartment on the ground floor. Why? Because in Bulgaria, there's often no central heating like we're used to. However, in the big cities, there's an exception to this rule—Sofia, where most buildings often have central heating.

Cities like Varna, Burgas, Plovdiv, and so on don't have central heating. Heating is provided by air conditioners. We don't have temperatures here: -30 and -20 don't even happen, so the coldest winters are the coldest I can remember. Yes, the lowest temperatures I can remember were somewhere around -12 to -15°C maximum. But that's just for one or two days, and that's it for the entire winter. And air conditioners, of course, don't provide that kind of warmth.

So, I repeat, not the first floor, but the top floor should be considered with caution. Because, again, these are the top floors. Leaks can develop over time, and, again, it's cold in the winter, colder than the average apartment, and hot in the summer. And you should try to look at apartments other than corner apartments, but rather apartments of some kind. Where, let's say, you have neighbors to the right, left, below, and above you who will provide heat. Absolutely right.

Well, if you absolutely can't stand it. That is, if you really like the apartment. And it's on a corner. Then you need to make sure it's facing south, preferably. Like south, southwest, southeast—where the sun is. My recommendation to people is to view the apartment both in the morning before lunch and after lunch, if possible. And then come back a second time to see it. Because you won't just be living in this apartment in the morning, yes. When you view it with a realtor. It's possible; a good realtor can easily do two or three showings to get a feel for it.

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

I can say there's no clear-cut answer here. Even though I'm a realtor. Yes, any other realtor would probably say, "Yes, but only with a realtor." You need to look at the situation. If you've lived in Bulgaria for a long time, then you already know the market well. I mean, you understand the city's neighborhoods well, you see what construction is going on, and how people are building. You visit friends. Well, in general, you have some experience in finding a place. And based on that experience, why not?.

It's possible, but again, you need someone who can legally guide you through the transaction. If you have the time, it takes a lot of time just to weed out unsuitable options. As a fairly experienced realtor, I can already tell from photos and descriptions what's involved, and if an option doesn't meet some criteria, we won't even go there. If someone thinks they have enough knowledge, then go ahead, why not. It's possible, but if you want to save time, money, and most importantly, your nerves, and avoid any future problems, then after the purchase, it's certainly better to consult a professional.

What are the realtor's commissions?

It's 3% without VAT, so you should always pay attention when signing a contract with a real estate agency. Keep in mind that 3% is listed without VAT, so essentially, it will be with VAT on a purchase. When you rent? And when you rent out, 50% is deducted from the monthly rent. And in Sofia? There, everyone does what they want. I spoke with a Sofia realtor, and she told me, "Tanya, in Varna, you know each other. You know how everyone works, how long they've been in business. We generally value our reputation. But Sofia is a big city, and there are a lot of fly-by-night agencies that enter the market, work, and then close. I feel like it's chaos there.".

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

There are apartments, including one I'm selling, that cost half a million euros. Basically, there's no limit to perfection here, so to speak. You can find something for 3 million, and there are some pretty expensive offers. When people ask me if they can buy an apartment in Varna with $30,000, I say no. Unfortunately, that's the price of a garage in Varna right now. A budget of $30,000 in Varna means you can't buy anything.

The minimum requirement for purchasing at least one apartment is one bedroom. A living room, like this one, a living room and one bedroom. In a decent neighborhood. You need to start with somewhere between 100,000 and 120,000 euros, and be patient. Because even with that kind of money, there's no guarantee we'll find something suitable right away. The average price per square meter is currently in a good neighborhood, I mean a good neighborhood. That means a neighborhood close to our park, to the sea, not a residential area. Prices start at around 1,500 euros and up per square meter.

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

The average price for a one-bedroom apartment is a living room and a bedroom. It has a kitchen and usually a fold-out sofa. So, for example, a family with a child could rent such an apartment. We'll talk about the price of such an apartment now. A living room and one bedroom. The price varies again depending on the area, which is greatly influenced by both the area and the condition. The minimum price is around 300 euros, and there's no maximum. There are apartments for 1,000 euros and above. So, is this average? Can you find a long-term apartment somewhere in the area? Yes. A daily rental would cost 30-40 euros minimum, so we're talking about the minimum limit. Of course, we're not talking about some super-luxury apartment or one within walking distance of the sea. So, this is an average area, the average price is 30-40 euros per day. Utilities. Utilities are usually billed separately and are calculated by the meter. They include water and electricity.

Which areas of Varna are considered the most expensive?

The most expensive district is the Greek Mahala, which is called "Gritska Mahala" in Bulgarian. I'll say it in Bulgarian. Because when people search in search engines, they need to understand what they're looking for and look in Bulgarian. The Opera district. It's called "Opera" because the Opera House is located there. It's the "Ideal Center" of the city. The "Obshchina" district is also the city center. "Vins" is the University of Economics, it's also a small district, but it's around the university. Then there are "Generalite" and "Okruzhna Bolnitsa." That's all you'll find if you open a map of Varna. That's all that's within walking distance of the park. So these are the most prestigious, most expensive districts, but again, I repeat, the most expensive district is the Greek Mahala. In the Greek Mahala, prices now start at €2,000. That's the best-case scenario; there are new buildings that, even at the construction stage, cost €3,000 per square meter.

Is it possible to buy real estate with Act 15? And how is it different from Act 16?

It's important to understand what Act 15 is. Act 15 means the house is technically ready, so to speak. That is, it has a roof, windows, a façade, an interior entrance, and railings. Everything is complete, but the finishing touches are not yet complete, utilities, Energo Pro, and the Vik Varna water utility are not yet connected.

There's industrial current, meaning the electricity in this building isn't household electricity; it's at industrial rates. By law, even repairs are generally not allowed in such a building. I mean, private individuals—that is, people—are not allowed to enter and carry out any repairs.

It's possible to purchase such an apartment. This isn't a barrier to purchase, but you need to understand that if you purchase an apartment with Act 15, you'll have to wait a certain amount of time. These deadlines are usually very vague, and until the building is commissioned, that is, until Act 16 is received, this risk exists. While this was previously economically justified, the price used to be generally cheaper, much cheaper, with Act 16, now the difference is very small. We'd say you could save about 100-150 euros per square meter.

You should only buy an apartment from a builder who already has a good reputation and extensive experience, including the risk of not completing the project. What timeframes are they promising? If it's a new construction company that hasn't built anything yet. I wouldn't buy an apartment in such a building from such a builder. If it's, say, a fairly well-known one (there are plenty of them these days), and if the apartment is being built by an investor who has a track record of success with previous projects and no problems, then again, if the building is practically already sold.

There are a few buildings in Varna. They're still in the fifteenth act, but there are no available apartments there anymore. They're all sold out, so you can buy there without fear, but you just have to be patient and wait until it's finished. Because they won't let you in. You want to buy, you've already bought it, and you want to renovate it. But you can't do it because they simply won't let you in. You see, you have to sit there and wait until they get the sixteenth act, and then...

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

Property maintenance, what's included? If it's a standard apartment building, it's usually just the property tax. Garbage collection is also paid. You can pay it upfront at the beginning of the year; you'll get a 5% discount even on that. This tax amount can be paid in two installments throughout the year. I can give you an example. I paid a client's rent yesterday. She has a 70-square-meter apartment. I paid 70 euros.

Bulgaria is actually very attractive in this regard. Many people like to compare Bulgarian real estate to Spain or Alicante. But they forget what taxes there are there, and what taxes apply when you want to sell the property. Another factor to consider is that the apartment can be in a so-called gated community. In such a community, there's a maintenance fee. It's paid either monthly. I recommend doing this, by the way, because it's less painful. Let's just say the amount involved isn't that large.

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

The maintenance fee in Bulgaria includes security, video surveillance, and sometimes a swimming pool, a gardener, and other services. These are the services. The maintenance fee is typically 10–12 euros per square meter per year. So, if the apartment is 100 square meters, that's 1,200 euros per year. So, pay attention to this when buying an apartment. Yes, again, you're paying for comfort. You're in a gated community, a guarded area. You have a pool in the summer, and a playground on the property. There are, let's say, special features that people are generally willing to pay for. You should definitely inquire about the maintenance fee. Because sometimes you can find apartments, say, in Sunny Beach or Sveti Vlas, at very attractive prices. But they don't mention the high maintenance fee. Why the high price? Because people there are apparently tired of paying this fee; they want to sell it quickly.

Does purchasing real estate in Bulgaria entitle one to a residence permit?

Purchasing real estate in Bulgaria doesn't automatically entitle you to a residence permit. But it can certainly be an advantage. This is because when people apply for a Type D visa, this is the first step. To obtain a residence permit, you need to obtain a Type D visa at the embassy. And when people apply for a Type D visa, they are required to provide a lease agreement. Where will you live? You must demonstrate where you will live in this country. Surely not in a tent on the beach. And of course, you must show proof of ownership of an apartment in Bulgaria. This will certainly be a huge advantage in obtaining a Type D visa.

What are the steps to purchasing an apartment in Bulgaria?

Well, we're talking about having already sort of decided on an apartment. Yes, we've chosen an apartment. So the first step is to leave a stop deposit, or earnest money in Russian. You need to leave a deposit to prevent the apartment from being shown to future clients and to remove it from the listing. Typically, we're talking about 1,000 euros. If you're working with a realtor, this is formalized in a special agreement with the agency.

The next stage is the preliminary agreement directly between the buyer and seller, which stipulates all the terms of the transaction, the obligations under the transaction, and the terms. This is a very important document; after the agreement is signed, 10% "kaparo" (or 10% in Bulgarian), or 10% as a deposit, is transferred. Yes, that's right. From this point on, it usually takes about two weeks, sometimes more, sometimes less. It's then a matter of assessing the situation with the documents and the intentions. The paperwork is already being prepared.

The next step is actually conducting the transaction before a notary. This is a crucial point to consider. Since we are foreigners in Bulgaria, Bulgarian law requires us to be accompanied by an interpreter. This is mandatory for transactions before a notary, that's all. After that, you're the proud owner of Bulgarian real estate.

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

Will they grow, stabilize, or collapse? To answer this question, let's take a look at some information about the Bulgarian real estate market. Bulgarians are among the leaders in Europe in terms of property ownership, according to the National Statistical Institute. These statistics place Bulgaria fourth in Europe in terms of property ownership per capita. Germany ranks last in this indicator.

The Phenomenon of Empty Apartments in Bulgaria

Who occupies housing in Sofia? Almost half of Sofia's housing is owner-occupied. Another 61,000 apartments in Sofia are occupied by close friends or relatives of the owner, typically a brother, sister, or children. They live in these apartments rent-free. 8.51,000 apartments are occupied by people who rent and pay rent. 0.61,000 apartments are listed for rent. These apartments are looking for people to live in them; these apartments are in the process of finding a landlord.

The most interesting thing is that 34% Of all the housing in Sofia, it stands empty; no one lives there. This housing is not for sale or rent. Even if someone wanted to buy or rent it, they wouldn't be able to. This situation has become known as the phenomenon of empty houses in Sofia.

But Vidin leads the way in vacant housing, followed by Burgas, where more than half of the housing is empty. This situation isn't beneficial for cities: half-empty neighborhoods necessitate the construction of infrastructure—transportation, streets, sewers, utilities, and so on—for buildings occupied by 50-60%. This is economically unviable.

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

Firstly, banks in Bulgaria stopped offering interest on deposits; instead, they started offering negative interest rates on deposits, meaning deposits, as a means of generating income and saving, have lost their purpose. And people need to protect their savings. On the other hand, banks offer mortgages with interest rates lower than in EU countries. So some people have started investing in real estate.

Secondly, the super-rich are buying.

Third, there's speculation. They bought it cheap and sold it for more. All these factors lead to housing being bought quickly and not being able to enter the open market. This creates an artificial shortage of housing supply, which in turn drives up prices. Another factor is that some people don't rent out their empty homes because they fear their interests won't be protected, given the significant cost of potential renovations.

What will happen to property prices in Bulgaria?

What's next? A well-known Sofia architect shared his experience of dealing with this in Barcelona. Since 2019, a regulation has been in place there that allows municipalities to purchase vacant properties, even without the owner's consent, for 50% of the market price. Some Sofia real estate experts cite the French experience, which imposes a double tax on vacant properties. This could be the optimal solution in this situation.

Incidentally, Bulgaria has one of the lowest property taxes in the EU, with the assessed value of the property, on which the tax is calculated, being lower than the market value. This could help replenish city budgets and bring property prices within reach of the majority, making housing more affordable. Therefore, unless radical legislative initiatives are introduced, prices will likely remain unaffordable for the majority, and entire neighborhoods will remain 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 sq. m., older studio apartment in Sofia is listed for €52,000. And a small, 24 sq. m. studio apartment is available for rent for €250 per month, near the city 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 to buy property in Bulgaria?

Yes, you can. If you have official permanent residency status or Bulgarian citizenship. The mortgage rate is around 3%. To apply for a mortgage from a Bulgarian bank, you need a salary certificate and a down payment of at least 20% of the purchase price.

Where to look for real estate in Bulgaria?

If you want to rent or buy an apartment, then most often people search for it here 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 helps you make the right decision. Please leave your comments.

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