The NSI reported that the popular tourist city of Varna is still the country’s most expensive area, with prices rising by 3.9% in the second quarter of this year to 1,710.3 per sqm. Sofia also experienced moderate growth (3.8%) where the average cost of a residential property is now 1,647.8 per sqm. The town of Vidin, situated on the banks of the Danube - 200km north west of Sofia, recorded the highest rise in property prices (23%) and now sits at 739 per sqm. 

Bulgaria’s second biggest city, Plovdiv (5%), the Black Sea port of Burgas (4.1%) and the Danube town of Russe (10,9%) all experienced growth recording prices of 1,103.2, 1,366.7 and 1,182.7 per sqm respectively.

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The Pari Daily newspaper reports that there is more than enough property for sale in Bansko, but interest in buying there is slowing fast. The newspaper also said that the property market in the ski resort has stagnated since the beginning of 2007, with millions of Euros worth of investment being blocked. 

It has also been reported that estate agents have been closing their doors as prices drop to between €500 - €900 per sqm. The nearby town of Razlog has also been feeling the affect, with agricultural land near a famous golf club being offered at €20 - €50 per sqm – with no takers. Pari also reported that the number of construction permits issued in Bansko has decreased for the first time in the last two years with some investors, who already hold permits, not starting to build (although a moratorium on new building permits in the area was introduced in January).

Bulgaria is particularly attractive because of its diverse and striking natural terrain-the beauty compacted into such a tiny country hasn’t stopped to fascinate visitors and investors alike. Relatively low urbanization and a good climate, combined with the rich cultural heritage, numerous historic and natural attractions, and friendly local environment have made Bulgaria a desired place for a second home or a permanent residence. 

In the last 18 months property prices in Bulgaria increased more than 25% and in certain cases real estate value increased by 50%. Now, after this initial big jump, the real estate market has taken a slower but steady trend of going upward. Prices of property and land are expected to increase by an average of 10 to 15 percent for the next few years and experts agree that now is good time to catch the wave of the growing real estate market in this country.

Whether investing in real estate development or buying land, or acquiring a vacation property, Bulgaria is a market that should not be overlooked. The prime real estate areas are obviously the bigger beach resorts along the Black Sea coast like(Albena, Golden Sands, St Konstantin and Elena, Sunny Beach); the coastal city of Varna; the country’s capital Sofia; the mountain resorts of Pamporovo, Bansko and Borovets; and the numerous towns and villages close to the sea coast. At the same time the Bulgarian inland, with its authentic towns, bucolic villages, and landscape, unspoiled by industrialization is a long-forgotten site for many West Europeans and also an attractive option for investment in real estate.

Bulgaria is an up-and-coming country, both in general economic terms and as a tourist destination. Natural attributes such as a warm Mediterranean climate, beautiful coastline, winter sport resorts and picturesque scenery form the basis for its growing popularity and future potential as one of Europe’s leading destinations, but what makes Bulgaria especially interesting – to investors and homebuyers a like – is the fact that it offers such great value and investment opportunities.

Bulgaria can in many ways be compared to Mediterranean destinations such as Spain, Greece and Portugal, yet it is still in the early phases of development and its property prices are therefore still only about a quarter of what you would expect to pay in a country like Spain. This makes Bulgaria a very attractive option for those people who are looking to buy an affordable holiday home or a property to rent out. 
 

The attributes already mentioned, accompanied by over development and crowding in some parts of the Mediterranean, ensure that the demand for Bulgarian tourism and real estate will continue to grow well into the future. 

Given this huge potential, and the current rate of growth, it is likely that property prices will continue to rise until reaching a par with established markets such as Spain and Portugal. The process, however, will take quite a few years, and it is during this period that Bulgaria will provide one of the best investment climates in Europe. 

Worries about the economical and political stability of the country have subsided, as over the past years Bulgaria has been making the transition to a stable democracy where fiscal and economic conditions continue to improve year on year. 

Economic growth rates are in excess of 4% per annum, inflation and unemployment have dropped to 3, 5% and 12% respectively and the currency has been stable since being pegged to the Euro. 

Both the volume traded on the SOFIX Stock Exchange and loans and mortgages issued by Bulgarian banks are growing rapidly, while the number of airlines offering easy connections from major European centres has been growing apace with tourist visits.

The indicators are therefore excellent, as the country – already a member of NATO and  joined the European Union in January 2007, a fact which in itself will have a strong upward effect on both demand and prices of Bulgarian real estate.

Thanks to our specialist in-house promotional and sales team, as well as our working relationship with the leading construction firms, we also advise foreign developers, helping them find the best land sites and projects to invest in, and ensuring that projects are completed on time and within budget. We can also co-ordinate the marketing and end-sale, realising a fast, profitable and efficient exit route.