Is this the right time to sell your property in Bulgaria online? The real estate market in Bulgaria had a very good year in 2022. 2023 has started off pretty strong as well. It’s like the property market has been given a wake up call recently and has been responding well to it.
The biggest factor behind the decent performance of the housing market in Bulgaria was the positive role played by the banks. Most of the banks lowered interest rates on deposits, which meant that property investment suddenly looked so much more attractive than saving the money in banks.
The low interest rates on mortgage loans also played a major role. Banks were also more relaxed about lending to customers, which meant that there was enough capital available to those looking to buy property in Bulgaria fast.
In Bulgaria, demand for properties can go up all of a sudden after years of lethargy in the market. This is something that has happened time and again. 2022 was marked by an increase in the number of property transactions done purely for investment purposes after travel restrictions were lifted. Such transactions, where the house purchased did not serve as the primary residence of the buyer, formed 30 percent of all property deals in the market.
That was the single biggest change seen in recent years. Bulgarians today have higher disposable incomes than ever before. This means they can afford to speculate in property with the goal of earning a substantial profit on it later.
In Sofia, for example, there has been a lot of interest in the residential properties around the Vitosha Boulevard. But most of the apartments that were sold here in 2022, and so far in 2023, have been done purely with an investment purpose.
There is also a renewal of interest in new projects in the luxury end of the property market. The demand for “smart” homes and offices, or energy efficient, interconnected apartments is the next big thing in the real estate market in 2023. It is nothing unusual for a home or an apartment to cost more than EUR 1 million. Last year, a luxury home at the Vitosha Mountains was sold for a record EUR 3 million. Another beachside villa at the Black Sea Coast went for EUR 1.95 million. Such prices were unthinkable in Bulgaria only a few years ago.
While such transactions are rare and happen only once or twice a month in Bulgaria, the fact is they are happening more often than before and this indicates that wealthy investors have started making the moves in the market. This is certainly good news for homeowners, as the influx of wealthy buyers will only drive up property prices for everyone.
Who is buying in Bulgaria?
Wealthy or upper class Russians continue to dominate the real estate market in Bulgaria. They are involved in most of the property transactions here, either as buyers or sellers. There is also a lot of interest in properties in popular beach resorts at the Black Sea Coast from British and Irish buyers.
Which are the most popular areas in Bulgaria with foreign buyers?
Generally, foreign investors prefer to invest in beach-facing luxury villas at the Black Sea Coast. Apartments in Sofia downtown remain popular. Properties at the Iztok and Lozenets districts are fetch a premium. The apartments around the subway station and the Paradise Centre can fetch a good price as well.