Bulgaria for Investors: Real Estate with Income Potential

The Bulgarian real estate market is actively attracting foreign investors due to:

• relatively low housing prices;
• moderate property taxes (only 0.3% of the cadastral value);
• high profitability - one of the best in Europe, especially in the rental segment.

Investments are relevant not only in resort, but also in urban residential and commercial real estate.

The most stable income is provided by apartments in Sofia, Varna and Burgas, especially in areas popular with:

• foreign students;
• retirees from Northern and Central European countries;
• business people who often come to Bulgaria.
• The most advantageous locations are near large universities. For example:
• Studentski Grad area in Sofia;
• near the Medical University in Varna.

Average yield:

• 1 bedroom - price from 100,000 Rental income/month: €600 € (Sofia — ~800 €)
• 2 bedrooms - price from 160,000 Rental income/month: €800–1000 € (Sofia — up to 1000 €)
• 3 bedrooms/maisonette - price from 250,000 € Rental income/month ~1200 € (Sofia — 1500 € and above)

Housing on the Bulgarian coast is traditionally in demand. Of particular interest are properties on the first line, which provide high demand during the tourist season (4-5 months a year).

Prices on the primary market (at the construction stage):

• Studio from 50,000–70,000 €
• 1 bedroom — from 75,000 €
• 2 bedrooms — from 120,000 €

Purchase at the construction stage allows you to save up to 25–50%, especially in Varna and Burgas. At the same time, installments from the developer are available. Before the completion of construction, up to 80% of the properties have already been sold.

Secondary market (in small towns and villages by the sea):

Studios from €25,000–€30,000

1 bedroom from €45,000–€55,000

2 bedrooms from €60,000–€80,000

The greatest interest is generated by complexes with swimming pools, spas and their own infrastructure, even if located on the second or third line from the sea.

Rental income (in season):

• Studio: €40–€50 per day
• 1 bedroom: €60–€80 per day
• 2 bedrooms: €90–€120 per day

Annual yield can reach 8–15%.

The commercial real estate market in Bulgaria is well developed. Premises for:

• shops,
• cafes and bars,
• offices,
• beauty salons and medical services are in demand.

Examples of prices and profitability:

• Small premises up to 50 m², cost from 70,000. Monthly income: €300–450 €
• Shop 50–80 m², cost from 100,000 Monthly income: €450–600 €
• Restaurant premises (without equipment) 100–150 m², cost from 200,000–300,000 € Monthly income: from 1,000 €
• Office (in a good location) 80–100 m², cost from 1,200–1,500 €/m² Monthly income: 500–600 €

Average profitability in the commercial segment is about 6% per annum.

The commercial real estate market in Bulgaria is well developed. Premises for:

• shops,
• cafes and bars,
• offices,
• beauty salons and medical services are in demand.

Examples of prices and profitability:

• Small premises up to 50 m², cost from 70,000. Monthly income: €300–450 €
• Shop 50–80 m², cost from 100,000 Monthly income: €450–600 €
• Restaurant premises (without equipment) 100–150 m², cost from 200,000–300,000 € Monthly income: from 1,000 €
• Office (in a good location) 80–100 m², cost from 1,200–1,500 €/m² Monthly income: 500–600 €

Average profitability in the commercial segment is about 6% per annum.