Published on and written by Cyril Jarnias
Bulgaria, an emerging Eastern European country, is increasingly attracting international real estate investors with its dynamic market and attractive prices. With sustained economic growth and a booming real estate sector, Bulgaria offers numerous opportunities for savvy investors. In this article, we will explore the most promising neighborhoods for real estate investment in Bulgaria, along with growth prospects for the coming years.
Sofia: The Bustling Capital
Sofia, the capital of Bulgaria, is undoubtedly the nerve center of the country’s economic and real estate activity. With a population of over 1.2 million and a GDP per capita above the national average, Sofia attracts many foreign investors. The most sought-after neighborhoods for real estate investment are:
Lozenets: The Chic and Trendy Neighborhood
Lozenets is one of Sofia’s most upscale neighborhoods, offering a pleasant living environment and high-end properties. This residential area attracts an affluent clientele, consisting of young professionals and expatriates. Real estate prices here are higher than the city average but offer interesting appreciation potential.
- Average price per m²: approximately €1,500 to €2,000
- Average rental yield: 4% to 6%
- Rental occupancy rate: over 90%
Oborishte: Old-World Charm in the Heart of the City
Oborishte is a central neighborhood in Sofia, known for its historic architecture and numerous green spaces. This area attracts enthusiasts of older properties to renovate, offering strong appreciation potential. Proximity to downtown and main tourist attractions also makes it a popular spot for short-term rentals.
- Average price per m²: approximately €1,200 to €1,800
- Average rental yield: 5% to 7%
- Rental occupancy rate: approximately 85%
Good to know:
Sofia concentrates the majority of foreign real estate investments in Bulgaria, with per square meter prices steadily increasing for several years. Central neighborhoods like Lozenets and Oborishte offer an excellent balance between profitability and appreciation potential.
Varna: The Pearl of the Black Sea
Varna, Bulgaria’s third-largest city and main seaside resort, has experienced spectacular real estate development in recent years. With its international airport and sandy beaches, Varna attracts many tourists and foreign investors. The most promising neighborhoods for real estate investment are:
Briz: The Booming Residential Neighborhood
Briz is a residential neighborhood located north of Varna, offering stunning views of the Black Sea. This area is experiencing rapid development with the construction of many modern residential complexes. Investors find interesting opportunities here, both for long-term and seasonal rentals.
- Average price per m²: approximately €800 to €1,200
- Average rental yield: 6% to 8%
- Rental occupancy rate: approximately 80% (higher during summer season)
Zlatni Pyasatsi (Golden Sands): The Popular Seaside Resort
Zlatni Pyasatsi, also known as Golden Sands, is one of Bulgaria’s most popular seaside resorts. Located just 17 km north of Varna, this resort offers strong potential for seasonal rental investment. Apartments and studios here are particularly sought after by tourists.
- Average price per m²: approximately €1,000 to €1,500
- Average rental yield: 7% to 10% (during summer season)
- Rental occupancy rate: over 90% during peak season
Good to know:
Varna and its coastal region offer excellent opportunities for seasonal rental investment. Real estate prices here remain relatively affordable compared to other European seaside destinations, suggesting interesting medium-term appreciation potential.
Plovdiv: The Cultural City Experiencing a Renaissance
Bulgaria’s second city, Plovdiv has been undergoing economic and cultural renewal in recent years. Named European Capital of Culture in 2019, Plovdiv is attracting more and more real estate investors drawn by its historical heritage and economic dynamism. The most promising neighborhoods for investment are:
Kapana: The Creative and Trendy Neighborhood
Kapana, Plovdiv’s former craftsmen quarter, has transformed into a trendy and creative area, attracting many young people and artists. This pedestrian neighborhood offers strong potential for rental investment, particularly for short-term rentals. Renovating older buildings here also presents an interesting opportunity.
- Average price per m²: approximately €700 to €1,000
- Average rental yield: 5% to 7%
- Rental occupancy rate: approximately 85%
Trakiya: The Developing Residential Neighborhood
Trakiya is a rapidly expanding residential neighborhood in Plovdiv, offering modern housing at attractive prices. This area attracts many young couples and families, creating strong rental demand. Investors find interesting opportunities here for long-term rentals.
- Average price per m²: approximately €600 to €800
- Average rental yield: 6% to 8%
- Rental occupancy rate: over 90%
Good to know:
Plovdiv is experiencing sustained economic growth, driven particularly by the development of its technology sector. This positive momentum suggests increasing real estate demand in the coming years, both for purchase and rental.
Growth Prospects: A Promising Future for Bulgarian Real Estate
Bulgarian real estate presents encouraging growth prospects for the coming years. Several factors contribute to this positive trend:
An Expanding Economy
Bulgaria shows solid economic growth, with GDP rising 3.7% in 2024 and optimistic forecasts for 2025. This positive momentum translates into increased household purchasing power and higher demand for quality real estate.
Rising Foreign Investments
The country is attracting more and more foreign investors, drawn by attractive real estate prices and interesting rental yields. In 2024, foreign direct investments in Bulgaria reached €2.5 billion, with a significant portion in the real estate sector.
A Booming Tourism Market
Tourism in Bulgaria is experiencing steady growth, with an 8% increase in foreign visitors in 2024. This trend favors investment in rental real estate, particularly in seaside resorts and cultural cities like Plovdiv.
Major Infrastructure Projects
The Bulgarian government has launched several large-scale infrastructure projects aimed at improving the country’s connectivity and stimulating economic development. These investments, particularly in transportation and energy, should have a positive impact on the real estate market in the medium term.
Good to know:
Analysts predict continued growth in the Bulgarian real estate market for the next 5 years, with estimated price increases between 5% and 8% annually depending on the region. The cities of Sofia, Varna, and Plovdiv are expected to see the strongest growth.
Tips for Investing in Bulgaria: Keys to Success
To succeed in your real estate investment in Bulgaria, here are some essential tips to keep in mind:
Choose Your Location Carefully
Location is a key factor for your investment’s profitability. Prioritize central neighborhoods in major cities or developing tourist areas. Consider proximity to public transportation, shops, and services to maximize your property’s appeal.
Study the Local Market
Before investing, take time to study the local real estate market in detail. Analyze price trends, rental yield rates, and the neighborhood’s development prospects. Don’t hesitate to consult local professionals for reliable information.
Anticipate Additional Costs
In addition to the purchase price, consider the additional costs associated with acquiring property in Bulgaria. These costs can represent between 5% and 7% of the purchase price and include notary fees, taxes, and agency fees.
Consider Renovation
Buying a property to renovate can be an excellent opportunity to create value. Many older buildings in city centers offer strong appreciation potential after renovation. However, make sure to properly assess renovation costs before starting.
Work with Professionals
To secure your investment, enlist the help of recognized local professionals. A lawyer specialized in real estate law and an accountant familiar with Bulgarian taxation will be valuable allies throughout your project.
Good to know:
Bulgaria offers advantageous tax conditions for real estate investors, with a corporate tax rate of 10% and favorable tax treaties with many countries, including France.
In conclusion, the Bulgarian real estate market offers numerous opportunities for savvy investors. With still attractive prices, interesting rental yields, and encouraging growth prospects, Bulgaria is establishing itself as a prime destination for diversifying your real estate portfolio. The cities of Sofia, Varna, and Plovdiv concentrate the best opportunities, each offering specific advantages depending on your investment objectives.
Disclaimer: The information provided on this website is for informational purposes only and does not constitute financial, legal, or professional advice. We encourage you to consult qualified experts before making any investment, real estate, or expatriation decisions. Although we strive to maintain up-to-date and accurate information, we do not guarantee the completeness, accuracy, or timeliness of the proposed content. As investment and expatriation involve risks, we disclaim any liability for potential losses or damages arising from the use of this site. Your use of this site confirms your acceptance of these terms and your understanding of the associated risks.
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.
