Real estate prices in Bulgaria

Bulgaria is one of the hottest property hotspot not only in Eastern Europe but also across the globe. There are three major types of properties in the Bulgarian real estate sector. These include residential properties, commercial properties and holiday real estate properties.

Since the beginning of 2014, there has been a considerable increase in demand for residential houses in Bulgaria thus spurring a rise in rental and sale prices for residential properties. This rise in demand and as such prices is attributed to an increase in foreign demand for residential properties. Among the areas that have witnessed an increase in demand for residential properties is Sofia, Black Sea coast, Varna and Plovdiv. Whereas this is the case, it is vital to mention that Bulgaria still has the most favorable rental and sale prices for residential properties in Eastern Europe and within the European Union. For instance, the average price of buying a residential property in Bulgaria is approximately €600 to €700 per square meter. On the other hand, the average price for renting residential properties is €3 to €10 per square meter per month. Notably, this price depends on the location of the residential property, with properties in Sofia renting at a higher price because of their high demand as compared to properties in other parts of Bulgaria. Importantly, most of the residential properties are easily accessible and are located within the vicinity of the capital city, Sofia and near the major towns in this country.

Similarly, there has been a significant increase in the demand for commercial properties in Bulgaria since 2011. Arguably, there are numerous projects that have contributed immensely toward the growth of office space. Currently, the office space in this country stands at approximately 1,570,242 square meters. Importantly, the rental rates in Bulgaria increased by an average of 8% for the first time since 2011 for commercial properties reaching €13 per square meter per month. However, in most places, the average prices for commercial properties such as office space range between €10.5 and €12 per square meter per month. Again, it is vital to mention that the prices of these properties are influenced by the location of the property as well as issues such as tenant specifications. Importantly, real estate analysts project that the demand for premium office space will increase considerably in 2014/2015, which may influence the rise in rental prices.

Finally, it is essential to mention that there has been a considerable increase in the demand for holiday real estate properties in the last few years. Notably, while the 2007/08 global financial crisis had an impact on the flow of investment in holiday properties in different tourist destinations in Bulgaria, there are indications that the holiday real estate sector is slowly picking up. Currently, the average selling price for holiday homes and other properties that focus on tourism is €512 per square meter. However, it is important to note that this price is higher or lower depending on the location of the property.