Published on and written by Cyril Jarnias
In the heart of the Thracian plain, Stara Zagora is increasingly appearing on the radar of real estate investors looking for a market that is still affordable but supported by solid economic fundamentals. As the sixth-largest city in Bulgaria by population, a crossroads of several major European corridors, and a major energy and industrial hub, the city combines attractive prices, decent rental yields, and medium-term capital gain potential.
Stara Zagora represents an interesting alternative to the Bulgarian real estate market, less heated than major cities like Sofia, Varna, or Plovdiv. To invest, it is essential to understand the local dynamics, key market figures, the current legal framework, and to identify the most promising property segments.
A Growing Market in a Strategic City
Stara Zagora is often presented as one of the most developed economic centers in Bulgaria and even in Southeastern Europe. Industry is the leading sector in terms of value added, driven by energy, machinery, electronics, food processing, textiles, and automotive. The Maritsa Iztok energy complex, located about forty kilometers away, employs around 11,600 people and supplies a significant portion of the country’s electricity, placing the region at the heart of Bulgaria’s energy transition.
GDP per capita in Bulgaria stands at 36,470 BGN, indicating a socio-economic profile favorable for residential investment.
This economic base is complemented by a privileged geographical position. The city is located at the intersection of several pan-European corridors (VIII and IX) and near corridor IV. The road network is dense, the connection to the Trakia highway is quick, and the city is a major railway hub connecting Sofia, Burgas, Ruse, and Svilengrad. This network facilitates daily commutes, supports logistics, and strengthens the appeal of industrial and commercial zones, with obvious spillover effects on residential and commercial real estate.
The city of Stara Zagora has all the infrastructure of a major modern city, including hospitals, the University of Thrace, schools, hypermarkets, banks, and hotels. Its cultural offerings are rich with an opera, theaters, museums, and festivals. It also stands out for its remarkable green heritage, such as the extensive Ayazmoto park located north of the city.
Price Levels and Accessibility: A Still Affordable Market
Compared to other major Bulgarian cities, Stara Zagora is at the lower end of the price range, while showing steady growth in recent years. In major urban centers, the national average for an apartment ranges between €1,200 and €2,000/m² depending on the city; in the capital, Sofia, the range easily climbs to between €1,600 and €3,000/m². In Stara Zagora, recent data shows average prices generally between €850 and €1,100/m² for apartments, a level significantly lower than Sofia, Plovdiv, or Varna.
The average price per square meter for apartments in the Stara Zagora municipality is about €1,031.
In terms of accessibility for local households, the indicators are rather favorable. The price-to-income ratio is 3.10, meaning an average home costs just over three years of median net income—a much lower level than in many European capitals. The “mortgage loan as a percentage of income” ratio remains around 22.33%, while the housing credit accessibility index is 4.48. The average interest rate for a 20-year fixed loan is around 3.9% (range 2.8–5.7%). These figures confirm that in Stara Zagora, home buying is not limited to an elite, which mechanically supports owner demand and thus the resale market.
To illustrate Stara Zagora’s positioning in the Bulgarian landscape, one can compare its average real estate market prices to those of other major cities like Sofia, Plovdiv, or Varna. This comparison helps situate its economic attractiveness and accessibility relative to the country’s main urban centers.
Simplified Comparison of Average Prices in Major Bulgarian Cities
| City | Average Apartment Range (€/m²) | Synthetic Comment |
|---|---|---|
| Sofia | 1,600 – 3,000 | Capital, most expensive market |
| Plovdiv | 1,200 – 1,900 | 2nd city, strong residential demand |
| Varna | 1,300 – 1,800 | Coastal city, tourist market |
| Burgas | 1,200 – 1,600 | Black Sea coast, strong seasonality |
| Stara Zagora | 850 – 1,100 | Industrial hub, prices still moderate |
| Ruse, Veliko Tarnovo | 850 – 1,100 | Dynamic regional cities |
In this context, investing in Stara Zagora allows one to position themselves in a major city, benefiting from a robust economy, at an entry cost that remains below the country’s already “premium” markets.
Rental Yields and Rent Dynamics
From an investor’s perspective, gross rental yields are a key indicator. For Stara Zagora, the average gross rental yield for apartments is estimated at 4.20%, placing it slightly below the recent Bulgarian average of around 4.53%, but in the same zone as Sofia (4.26%) or Haskovo (4.41%). Importantly, the city stands out with higher yields in the city center than in the outskirts.
Key Yields and Ratios in Stara Zagora
| Indicator | Estimated Value |
|---|---|
| Average Gross Rental Yield (apartments) | 4.20% |
| Gross Yield – City Center | 5.34% |
| Gross Yield – Outside Center | 4.76% |
| Price-to-Rent Ratio – City Center | 18.71 |
| Price-to-Rent Ratio – Outside Center | 20.99 |
| Average Net Monthly Salary | 2,260 BGN |
These ratios concretely mean that in the city center, the gross yield is slightly above the national average, while the outskirts offer a slightly lower yield, but still competitive in a European context. However, it should be kept in mind that these yields are “gross”: net yields, after deducting taxes, maintenance fees, condominium charges, vacancy periods, and possible management, will generally be 1.5 to 2 points lower.
Rents remain moderate, which explains sustained rental demand, notably from young households, students from the University of Thrace, and employees of major local companies.
Average Monthly Rent by Housing Type
| Property Type | Location | Average Rent (BGN/month) | Usual Range (BGN) |
|---|---|---|---|
| 1-Bedroom Apartment (T2) | City Center | 383 | 300 – 450 |
| 1-Bedroom Apartment (T2) | Outside Center | 267 | 150 – 350 |
| 3-Bedroom Apartment (T4) | City Center | 700 | 600 – 800 |
| 3-Bedroom Apartment (T4) | Outside Center | 483 | 400 – 600 |
These rents fall within an overall range from about 200 to 1,100 BGN depending on size, location, and level of amenities (from a simple studio to a new luxury apartment). The rental market is described as tight in some neighborhoods, with high demand near the center, universities, and major transport routes. Many apartments are offered furnished or partially furnished, which facilitates renting for a foreign investor.
Apartments: Purchase Price and Yield by Type
To refine the analysis, it is useful to look at average profitability by apartment type, based on data in euros.
Price and Gross Yield by Apartment Type in Stara Zagora
| Apartment Typology | Average Purchase Price (€) | Average Monthly Rent (€) | Gross Annual Yield |
|---|---|---|---|
| 1-Bedroom (T2) | 74,000 | 280 | 4.54% |
| 2-Bedroom (T3) | 106,600 | 383 | 4.31% |
| 3+ Bedroom | 123,000 | 383 | 3.74% |
We observe that smaller units offer on average a slightly higher yield than larger apartments. An investor primarily targeting cash flow and maximum yield rate would therefore be wise to focus first on well-located T1/T2 units, even if it means accepting a higher tenant turnover rate. Two- or three-bedroom apartments remain interesting for more stable tenant profiles (families, couples, student co-living) and can offer greater capital gain potential if the market continues to rise.
Sustained Price Momentum and Capital Gain Prospects
Nationally, residential prices have increased by about 38% over five years, driven by the boom in cities like Sofia and Plovdiv, which have seen increases close to 46%. Stara Zagora stands out by ranking third nationally, with a rise of about 34% over the same period. In other words, without being the country’s most speculative market, the city shows regular and significant growth.
First quarter 2025 data confirms strong home price appreciation in Bulgaria, with a national average annual increase of over 15%. Stara Zagora recorded growth of 13.3% year-on-year and 4% quarter-on-quarter. Cities like Ruse or Varna show even more pronounced increases, though often from slightly lower initial price levels.
Major agencies and Bulgarian market analysts anticipate continued price increases, but at a more moderate pace. Projections speak of annual price growth of around 8 to 10% in major cities over the coming years, with a peak of momentum expected around 2025 before stabilization around 8–10% annually. In Stara Zagora, this trend should continue to be supported by a combination of factors: job transfers related to energy transition, massive investments in industrial zones, infrastructure improvements, and gradual scarcity of well-located land.
For an investor targeting medium-term capital gain, purchasing an apartment around €1,000/m² in a developing neighborhood presents interesting potential. This price level, relatively low compared to other European markets, could allow for a significant increase in property value over a 5 to 10 year period if market growth projections hold true.
The Short-Term Rental and Airbnb Market
Beyond classic long-term rental, Stara Zagora is starting to appear on the map of short-term rentals, like Airbnb. A recent analysis, covering the period September 2024 – August 2025, lists 98 active listings in the city, which remains modest but significant for a non-beach tourism market in the traditional sense.
Performance varies greatly depending on property quality, location, and management. The top 10% of listings generate at least $943 in monthly revenue, with occupancy rates above 71% and nightly prices starting from $70. The top quartile of properties is around $669 monthly, with occupancy above 51%.
The median monthly revenue generated by Airbnb rentals is about $396, for a 30% occupancy rate and an average price of $44 per night.
Summary of Airbnb Market Performance in Stara Zagora
| Indicator | Top 10% | Top 25% | Median | Bottom 25% |
|---|---|---|---|---|
| Monthly Revenue (approx.) | ≥ $943 | ≥ $669 | ~ $396 | ~ $217 |
| Occupancy Rate | ≥ 71% | ≥ 51% | ~ 30% | ~ 16% |
| Average Price per Night | ≥ $70 | ≥ $53 | ~ $44 | ~ $38 |
Seasonality is pronounced: the month of May is generally the strongest in terms of revenue, while February is the low point. Interestingly, occupancy often peaks in September, while the average nightly price reaches its peak in July.
Average monthly revenue in dollars during the high season (May, June, September).
For an investor considering short-term rental, this data shows that potential exists, but performance heavily depends on the ability to position in the top quartile of the market, offering a quality product, well-located (city center, near parks, the train station, or the university), and managed professionally. Most listings accept very short stays (1–2 nights), and more than half are available over 270 days a year, offering great flexibility.
Neighborhoods, New Developments, and Property Typology
The residential market in Stara Zagora is structured around a dense center, a ring of urban neighborhoods (Zheleznik, Kazanski, Tri Chuchura, Remiza, Ayazmoto, etc.), and a crown of suburban villages and villa zones, highly sought after for single-family homes.
The central neighborhoods (often referred to as “Tsentar”) concentrate the majority of well-maintained old buildings, renovated or modernized apartments, and small new projects. Rents there are the highest, but also the most stable. They feature many examples of 50 to 100 m² apartments, sometimes luxuriously furnished, offered between 500 and 1,000 BGN per month.
Neighborhoods like Zheleznik (East and West), Kazanski, Tri Chuchura-Center, Remiza, or Ayazmoto combine socialist-era buildings, new residential complexes, and recent condominiums. They offer per-square-meter prices generally lower than the hyper-center and attractive gross rental yields, particularly for mid-range rental budgets.
At the same time, there is strong dynamism in new construction. In the western part of the city, near the Billa supermarket and the medical school, several new buildings are under construction or recently completed, some with a very high pre-sale rate (70–80% of units sold before delivery). In the east, small “boutique” buildings of about ten apartments are generating marked interest, sometimes selling “off-plan” thanks to early reservations.
In peripheral areas and villages, the market is dominated by single-family homes, often with gardens, sometimes needing renovation. Prices are attractive, ranging from €24,000 to €70,000 depending on condition and location. These properties are suitable for a second home, a renovation project, or a countryside residence. They can also meet specific rental demand: long-term rental to local families, retirement in the countryside, or housing for teleworkers in a semi-rural setting.
Commercial Real Estate and Land: Industrial Zones and Plots
Beyond residential, Stara Zagora offers substantial opportunities in commercial real estate, building plots, and industrial zones. The city and region have invested in structured industrial parks, attracting companies in automotive, logistics, renewable energy, and technology sectors.
The “Zagore” industrial zone is a joint project between the municipality, local companies, and the national industrial zones company. Located within the urban perimeter with quick access to the Trakia highway, it offers serviced plots with technical infrastructure and a detailed development plan. Its first phase covers about 135,000 m², divided into 11 lots of 4,000 to 15,000 m². The goal is to attract high-value-added industries by offering comprehensive administrative and logistical support.
Another zone, Elenino, is designed as a “green” hub of over 300,000 m², focused on environmentally friendly activities and clean energy. Together, these zones have already absorbed over €376 million in investments, generating more than 2,000 jobs.
Purchasing land on the immediate outskirts, in areas where road infrastructure is improving and industrial demand is growing, can offer strong capital gain. It is crucial to master urban planning rules, the land status (regulated, existing connections), and usage constraints. In the region, prices vary from a dozen to a hundred euros per square meter, depending on location and characteristics like access to water or electricity.
Legal and Tax Framework for Foreign Investors
Investing in Stara Zagora, as elsewhere in Bulgaria, requires understanding the country’s specific legal and tax framework. Bulgaria remains very open to foreign capital, with a relatively simple system and low taxes compared to most European Union states.
Foreigners, whether European or not, can freely purchase apartments and buildings. EU and EEA citizens have the same rights as Bulgarians to acquire land—subject to certain restrictions still in force on agricultural land. Nationals of third countries cannot directly own land in their own name. To buy a house with a garden, for example, it is then necessary to set up a Bulgarian company (usually an EOOD/OOD) that will own the land, with the investor holding the company shares.
The purchase follows a standard process: selection, negotiation, and signing of a preliminary contract with a deposit (5-10%). Next come legal checks (title, mortgages, permits) and, for non-EU buyers purchasing land, the possible creation of a company. The transaction concludes with the signing of the notarized deed, registration in the land registry, and declaration to the municipality. The total timeframe is one to two months. It is possible to complete all steps remotely via a notarized power of attorney given to a lawyer or representative.
In terms of costs, one must budget for an additional 5 to 10% on top of the sale price, adding notary fees (0.1 to 1.5% of the value, capped), transfer tax (between 0.1 and 3.5% depending on the municipality), registry fees (about 0.1%), lawyer fees (often 0.5 to 2% of the price), and real estate agency commission (generally 2 to 3%, shared or not between seller and buyer).
Standard property tax rate in Spain, expressed as a percentage of the property’s fiscal value.
Rental income is taxed at a flat rate of 10% on net income (or gross in some cases), placing Bulgaria among the lowest-taxed jurisdictions in the EU. Capital gains upon resale are also subject to a 10% tax, but the system provides several exemptions: no tax if the property is a primary residence held for more than three years, or if up to two properties are held for more than five years; inherited properties are also exempt from capital gains tax. For an investor holding assets for several years, the tax dimension is therefore often limited.
Finally, it should be recalled that Bulgaria applies a uniform tax rate of 10% for personal income tax and corporate tax, and that there are no inheritance taxes between spouses and direct descendants. These elements enhance the country’s appeal for long-term investors.
Financing, Credit, and Risk Profile
Bulgarian banks grant mortgage loans to foreigners, but conditions vary by nationality and risk profile. Generally, it is possible to borrow up to €250,000 over a maximum term of about 25 years, with loan-to-value (LTV) ratios that can reach 70–80% for completed properties, and more prudent ratios for projects under construction.
Loans are primarily in euros, with rates between 2.8% and 6% in 2025, often more favorable for EU nationals. Banks require proof of stable income, property appraisal, and sometimes life and home insurance. Opening a local bank account is essential to pay for the purchase and repay the loan.
In the case of Stara Zagora, the local context—good employment levels, rising wages, a growing but still affordable real estate market—creates a relatively healthy environment for financing. Investors wishing to limit leverage can also take advantage of the modest remuneration of bank deposits in Bulgaria and the relative stability of the currency (lev pegged to the euro via a currency board), to arbitrate between local financing and equity.
Rental Demand, Tenant Profiles, and Imbalances
The rental market in Stara Zagora is fueled by several categories of demand: students and recent graduates from the University of Thrace (notably from the medical school, which hosts a significant share of international students), employees of major industries (energy, automotive, food processing), service sector workers (banks, commerce, administration) and, to a lesser extent, foreigners settled in the region.
In several major Bulgarian cities, like Stara Zagora, it is difficult to find well-maintained apartments at a reasonable rent. Prices, perceived as overvalued especially in central neighborhoods, reflect strong demand and insufficient new supply according to property owners.
At the same time, rental transactions remain insufficiently documented in official statistics, which complicates fine-grained market analysis. Some investors are turning away from seeking immediate rental yield to primarily target capital gain upon resale after a few years of holding, betting on price increases and the gradual scarcity of good addresses.
For an investor interested in Stara Zagora, this means the strategy must be clearly defined: either optimize rental yield by carefully choosing location, typology, and level of amenities, possibly positioning in the quality short-term rental segment; or accept a moderate but presumably stable gross yield, with an eye on asset appreciation in the medium or long term.
Risk Factors and Points of Vigilance
Any growing market carries risks that should be anticipated. In Stara Zagora, several elements deserve particular attention.
The first is demographic: some sources indicate that the city’s population may have fallen below the symbolic threshold of 100,000 inhabitants, with marked aging (nearly a quarter of residents are over 65 years old) and a negative natural balance. Despite this, the real estate market remains dynamic, supported by economic development, incoming industrial investments, and the energy sector transition, which is expected to lead several thousand employees to retrain into other professions, often located in the region.
Construction starts have increased sharply, with housing deliveries nearly doubled since the mid-2010s. In the short term, this may put pressure on prices in some segments, especially if demand softens. However, on a national scale, analysts foresee continued price increases, even if slower, suggesting that major regional cities like Stara Zagora will remain buoyed by this general trend.
The third point is related to the regulatory and political context. Bulgaria has implemented a screening mechanism for foreign direct investments, notably for non-European investments exceeding €2 million in sensitive sectors. While this filter mainly concerns large industrial or strategic projects, it is part of the landscape to be aware of for major investors. Add to this local debates on land use planning, illustrated by some contested decisions to reclassify forested areas into buildable land, which can influence citizen perception and the development of certain neighborhoods.
As everywhere, usual risks exist: construction quality, permit compliance, clarity of property titles, and transparency of intermediaries. The best defense is to be accompanied by an independent lawyer and a reputable agency, to conduct rigorous checks, and, in the case of off-plan purchase, to confirm that the necessary administrative acts (Act 14, Act 15, Act 16) have been or will be legally obtained.
Where Does Stara Zagora Fit in a Bulgarian Investment Strategy?
Overall, Stara Zagora occupies a somewhat specific place on the map of Bulgarian real estate investment. It does not benefit from the tourist appeal of coastal cities like Varna or Burgas, nor the capital image of Sofia, nor the heavily promoted historical charm of cities like Veliko Tarnovo. However, it combines several advantages rarely found in a single market:
Discover the main economic, real estate, and geographical assets of this dynamic region.
Fueled by energy and industry, with significant foreign investment in automotive and renewable energy.
Prices still significantly lower than the capital (+34% in 5 years), offering good appreciation potential.
Yields comparable to or higher than in the city center, with light taxation (10% income tax, property tax 0.1-0.3%).
At the crossroads of European transport corridors, with good road, rail, and Black Sea port access.
Large parks, rich cultural life, historical heritage, and renowned thermal spas nearby.
For a foreign investor looking to diversify their real estate portfolio in Bulgaria, Stara Zagora can therefore represent a good compromise between yield, relative security, and growth potential. It is particularly well-suited for several strategies:
Four promising investment avenues to capitalize on the local market’s dynamism and the region’s specificities.
Acquisition of small or medium-sized apartments to rent to employees, students, or couples. Expected gross yield: 4.5 to 5.3%. Medium-term capital gain perspective.
Targeting well-located and equipped accommodations for business travelers, families on medical trips, tourists from the Rose Valley, or those in transit to the coast.
Investment in quality real estate projects in the west and east of the city. Advantages: strong demand, liquidity at resale, and appeal to tenants seeking comfort and energy performance.
Positioning on land or commercial properties linked to the development of industrial zones (Zagore, Elenino, bypass, Trakia highway). Goal: land appreciation and capitalizing on regional economic transformation.
As always, the key lies in fine location selection, understanding local dynamics, and relying on reliable professionals. In a country where transaction costs and taxation remain low, but where market information can be fragmented, Stara Zagora rewards those who take the time to study the terrain—and could offer, for the years to come, one of the best risk-return profiles in the Bulgarian real estate market outside the capital.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
