Published on and written by Cyril Jarnias
In the current context of energy transition, green real estate in Bulgaria is emerging as a promising sector, benefiting from new stringent environmental standards and innovative subsidies planned for 2025. As the country commits to reducing its carbon footprint, government and private initiatives are multiplying, transforming the real estate market into a breeding ground for sustainable innovations. This article explores how these measures, coupled with growing public awareness, are redefining real estate standards and creating attractive opportunities for visionary investors. Discover how Bulgaria is establishing itself as a key player in green real estate in Eastern Europe by adopting eco-friendly architectural solutions and capitalizing on its sustainable growth potential.
Green Building Standards in Bulgaria
Green Building Regulations in Bulgaria in 2025
In 2025, Bulgaria has significantly strengthened its green building standards, aligning its practices with the European Union’s environmental objectives. The Bulgarian real estate sector is now subject to strict regulations aimed at promoting sustainability and energy efficiency.
Mandatory Environmental Certifications
For new constructions, BREEAM (Building Research Establishment Environmental Assessment Method) certification has become mandatory. This certification assesses the environmental performance of buildings across ten categories, including energy, water, materials, and waste. Developers must achieve at minimum a “Very Good” rating for their projects.
Energy and Thermal Insulation Standards
Energy efficiency requirements have been significantly strengthened. New buildings must achieve a maximum energy consumption of 30 kWh/m² per year, which requires the use of high-performance insulation materials and energy-efficient heating and cooling systems. The use of renewable energy sources, such as solar panels, is strongly encouraged.
Waste Management During Construction
Construction sites are required to recycle at least 70% of their waste. A detailed waste management plan must be submitted and approved before work begins. Construction companies must work with certified partners for waste treatment and recycling.
Impact on the Local Real Estate Market
These new standards have had a significant impact on the Bulgarian real estate market. Construction costs have increased by approximately 15-20%, which is reflected in sales and rental prices. However, demand for energy-efficient housing is rising, particularly among young professionals and expatriates.
Implications for Developers and Property Owners
Real estate developers must adapt their practices and invest in new technologies to meet the requirements. Some small developers are struggling to adapt, leading to market consolidation. For property owners, renovating existing buildings has become a priority, with the obligation to upgrade properties to at least energy class C by 2030.
Government Initiatives
The Bulgarian government has implemented several measures to facilitate the transition:
- Tax reductions of up to 50% for property owners undertaking major energy renovations
- Subsidies covering up to 30% of costs for installing renewable energy systems in residential buildings
- A guarantee fund for green loans, facilitating access to financing for sustainable construction projects
These initiatives aim to stimulate the adoption of new standards and support the construction sector in this transition toward more sustainable practices.
Good to Know:
In 2025, Bulgaria imposes strict green building regulations, including mandatory environmental certifications for new constructions, which must meet specific standards for energy efficiency, thermal insulation, and waste management. These requirements aim to reduce the real estate sector’s carbon footprint and are accompanied by government incentives such as tax exemptions and financial aid for compliant developers and property owners. The local real estate market may see an initial rise in costs, but long-term energy savings and the enhanced appeal of certified properties could offset this impact. Initiatives to promote these practices include subsidies for incorporating eco-friendly materials and renewable technologies, encouraging developers to adopt these standards and strengthening the movement toward greener real estate in Bulgaria.
Renewable Energy Subsidies
Renewable Energy Subsidy Programs in Bulgaria in 2025
In 2025, Bulgaria offers several government and European programs aimed at supporting the use of renewable energy in the real estate sector. These initiatives are part of the country’s efforts to achieve its ambitious clean energy and greenhouse gas emission reduction targets.
Bulgaria’s National Recovery and Resilience Plan (NRRP) plays a central role in funding renewable energy projects. For the year 2025, the NRRP allocates approximately 526 million Bulgarian leva (268 million euros) to 249 projects focused on renewable electricity production and energy storage. These projects aim to increase Bulgaria’s renewable energy capacity and strengthen its energy storage infrastructure.
Types of Subsidies and Eligibility Criteria
Subsidies are divided into two main categories:
1. Small and medium-scale projects: For installations with a capacity between 200 kilowatts (kW) and 2 megawatts (MW), the program funds 200 projects for a total amount of approximately 107 million leva (54.7 million euros). These projects will add 435 MW of renewable capacity and 176 MW of storage.
2. Large-scale projects: For installations with a capacity exceeding 200 kW, 49 projects will be funded for a total amount of 419 million leva (214 million euros), adding 2,660 MW of new renewable capacity and 1,000 MW of energy storage.
Eligibility criteria generally include the project’s technical and economic viability, its positive environmental impact, and its contribution to national renewable energy targets.
Impact on Green Real Estate Development
These subsidies are expected to have a significant impact on the development of green real estate in Bulgaria. By making renewable energy technologies more accessible and affordable, they encourage real estate developers and property owners to integrate these solutions into their projects.
Environmental Benefits: Increased use of renewable energy in the real estate sector will help reduce greenhouse gas emissions, thereby improving air quality and combating climate change. The supported projects are estimated to add approximately 3 GW of new renewable capacity to the national grid.
Economic Benefits: The subsidies stimulate innovation and job creation in the clean energy sector. Additionally, buildings equipped with renewable energy technologies typically benefit from reduced long-term operating costs, making them more attractive to investors and occupants.
Examples of Beneficiary Real Estate Projects
Although specific project details for 2025 are not yet available, examples of past successes illustrate the potential impact of these subsidies:
Residential Project in Sofia: A 150-unit apartment complex installed solar panels on its roof and geothermal heat pumps, reducing its energy consumption by 60% and its CO2 emissions by 70 tons per year.
Office Park in Plovdiv: A renovation project for an office park integrated photovoltaic systems and energy storage, enabling the building to achieve 80% energy autonomy during peak hours.
These examples demonstrate how renewable energy subsidies can transform the Bulgarian real estate landscape, creating more sustainable and energy-efficient buildings.
Future Outlook
The Bulgarian government plans to expand these subsidy programs in the coming years, with the ambitious goal of reaching 40% renewable energy in its energy mix by 2030. This direction is expected to continue stimulating innovation in the real estate sector and accelerating the transition toward greener, more energy-efficient buildings.
Good to Know:
In Bulgaria, renewable energy subsidies in 2025 include government and European programs that promote the use of clean energy in real estate. Notable initiatives include a national program offering subsidies covering up to 50% of the cost of photovoltaic devices for new constructions, while European funds can finance up to 60% of energy renovation projects to improve thermal efficiency. Eligibility requires meeting criteria such as the use of certified materials and achieving an energy label of class B or higher. These subsidies encourage the development of green real estate, significantly reducing carbon emissions and long-term energy costs. For example, a residential complex in Sofia saw its energy bills decrease by 30% thanks to installed solar panels, benefiting from European aid, demonstrating notable progress toward carbon neutrality and substantial savings for residents.
BREEAM Certification in Sofia
BREEAM Certification: A Standard of Excellence for Sustainable Real Estate in Sofia
BREEAM (Building Research Establishment Environmental Assessment Method) certification is establishing itself as an international benchmark for assessing the environmental performance of buildings. Created in the United Kingdom in 1990, it now plays a crucial role in the global real estate sector, encouraging more environmentally friendly construction practices.
In Sofia, the expanding Bulgarian capital, BREEAM certification is gaining importance, reflecting a growing awareness of environmental issues in urban development. Real estate developers in the city are increasingly turning to this certification to demonstrate their commitment to sustainability and meet the expectations of a market increasingly demanding in terms of environmental performance.
BREEAM Certification Criteria and Requirements in Sofia
BREEAM certification assesses buildings based on several key criteria:
- Energy management and CO2 emission reduction
- Efficient water use
- Indoor environmental quality
- Material selection and waste management
- Accessibility and transport impact
In Sofia, these criteria take on a particular dimension, taking into account the city’s specific climatic and urban characteristics. Real estate projects must therefore integrate solutions adapted to the local context, such as optimizing thermal insulation to cope with harsh winters or intelligent water management to address water resource challenges.
Concrete Benefits of BREEAM Certification for Projects in Sofia
Obtaining BREEAM certification brings numerous benefits to real estate projects in Sofia:
Significant reduction in carbon footprint, with energy savings of up to 30% compared to standard buildings.
Improved energy efficiency, resulting in lower long-term operating costs.
Enhanced real estate asset value, with BREEAM-certified buildings benefiting from greater market appeal.
Improved occupant comfort and well-being, thanks to particular attention paid to indoor air quality and natural lighting.
BREEAM Certification Process in Sofia
To obtain BREEAM certification in Sofia, real estate developers must follow a rigorous process:
1. Engaging an accredited BREEAM assessor from the initial project phases.
2. Conducting a preliminary assessment to identify improvement opportunities.
3. Integrating BREEAM criteria into the building’s design and construction.
4. Detailed documentation of implemented measures.
5. Final evaluation by an independent assessor.
Government Incentives for Adopting Green Standards in Sofia
The Bulgarian government, aware of environmental challenges, has implemented incentives to encourage the adoption of green standards like BREEAM by 2025:
Subsidies covering up to 50% of certification costs for projects achieving “Excellent” or “Outstanding” ratings.
Tax reductions for owners of BREEAM-certified buildings.
Accelerated approval process for building permits for projects aiming for BREEAM certification.
These measures reflect Sofia’s commitment to more sustainable urban development, making BREEAM certification a key tool for the future of real estate in the Bulgarian capital.
Good to Know:
BREEAM Certification, a leading standard for sustainable design, plays a crucial role in Sofia’s real estate, aligning local projects with international sustainable development standards. It assesses criteria such as energy efficiency, waste management, and environmental impact, essential for developers seeking to reduce their carbon footprint. In Sofia, obtaining BREEAM certification requires a rigorous evaluation of the built environment and construction process. Benefits include not only more eco-friendly buildings but also long-term energy consumption savings. The Bulgarian government encourages the adoption of these standards through subsidies and financial incentives, aligned with ambitious national targets set for 2025.
State Aid for Green Real Estate
State Aid for Green Real Estate
The Bulgarian government has recently launched several ambitious initiatives to stimulate the construction and renovation of eco-friendly buildings in the country. These measures are part of the broader framework of Bulgaria’s National Recovery and Resilience Plan, which aims to modernize the country’s economy while reducing its carbon footprint.
Subsidies and Eligibility Criteria
A new subsidy program has been established to encourage businesses and individuals to invest in green real estate projects. Eligibility criteria include:
- The use of sustainable building materials with low environmental impact
- Integration of energy efficiency technologies like solar panels or heat pumps
- Implementation of smart energy management systems
- Obtaining a recognized environmental certification (BREEAM, LEED, etc.)
Subsidy amounts can reach up to 50% of eligible costs for large companies, with higher rates for SMEs. For individuals renovating their homes, aid of up to 85% of expenses is available, subject to income conditions.
Partnerships and European Funding
Bulgaria has concluded an important agreement with the European Investment Bank (EIB) to support these objectives by 2025. A loan of 250 million euros has been granted to co-finance projects receiving European subsidies, with particular attention paid to energy efficiency initiatives in buildings.
Furthermore, the country is closely collaborating with international consultants like BRE Global and Greenworks to develop a national green building code, aligned with European best practices.
Expected Benefits
This aid is expected to have a significant impact on the Bulgarian economy and its carbon footprint:
- Estimated creation of 1,500 jobs in the green construction sector
- Projected 15% reduction in building energy consumption by 2025
- Increased attractiveness of the country for foreign investors in the real estate sector
- Improved quality of life in urban areas through healthier and more comfortable buildings
These ambitious initiatives position Bulgaria as an emerging player in the field of sustainable construction in Eastern Europe, with positive expected outcomes both economically and environmentally.
Good to Know:
Recent Bulgarian initiatives in favor of green real estate include subsidies for the construction and renovation of eco-friendly buildings, with amounts up to 10,000 euros for individuals and more substantial aid for businesses, depending on their size and project. Eligibility is based on criteria such as the use of eco-friendly materials and compliance with European energy standards. These schemes are partially funded through partnerships with European institutions, such as the Just Transition Fund, and international organizations, with an objective of improving infrastructure energy efficiency by 2025. Expected benefits include a significant reduction in the national carbon footprint and stimulation of the local economy through the creation of green jobs.
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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.
