What Will be the Real Estate Prices in Bulgaria in 2024?

2023 was a successful year for the real estate market in Bulgaria. Studios, modern apartments and private houses’ price level increased by 15%. Currently, it is at its peak level since 2008.

At the start of 2024, property in Bulgaria is one of the most budget-friendly compared to other European countries. Modern studio apartment could be bought for €18 thousand per square meter. Experts say, for the future 2024 cheap will be no longer about Bulgaria. Prices have increased significantly on the secondary market, almost doubling in some locations, this applies to both sales and rentals.

Several factors contributed to activation of the market. The first is associated with high inflation levels, building materials rising costs, services and energy prices. The second is increased demand among locals. Bulgarians view real estate as a reliable investment. Many of them go to work abroad and invest the money they earn in apartments in their own country.

Bulgarian “squares” are also popular among foreigners. They became the third factor that played in favor of the current high-active market. The British, Germans, Poles and Israelis willingly bought housing in order to get a cheap apartment at sea, and rented it out the rest of the time. But most of all, Bulgarian real estate relies on Ukrainians. According to the UN, 164 thousand Ukrainian refugees came to Bulgaria in search of refuge from the war. This amount did not go unnoticed either on the purchase and sale market or on the rental market.

Real Estate Prices in Bulgaria

Secondary market prices volatility has slowed down at the start of 2024: an increase in the key rate of the local central bank provoked an increase in mortgage prices. Actually, domestic demand for housing decreased, and most foreign investors took a wait-and-see approach.

The market went through the first half of 2023 in a relatively moderate manner. And now, towards autumn, it has perked up again. In particular, many offers for the sale of housing appeared.

Practice shows that in September and October we have an increase in sales of sea resort apartments, which appear on sale again after the season. In general, prices will not notably rise until the end of the year, but they certainly will not decrease.

According to the expert evaluation, the start of 2024 is the optimal time to invest for those looking for budget options, since house for sale in Bulgaria prices up to €80 thousand are selling out very quickly.

The real estate prices in Bulgaria, for example, in Sunny Beach costs an average of €1,000, in Hecebar – €900, Pomorie – €750, Bansko – €900. The capital Sofia remains the most expensive place to invest in; the average cost per square meter here is €1,500.

Prices for Real Estate Near the Sea in Bulgaria, 2024

Real estate is a “primary” product, you can buy remotely; about 60-70% of transactions are completed this way. If it is a “resale” item, the buyer must be present at the viewings.

Registration is carried out by a notary in person or by proxy for the buyer’s agent. With personal presence, everything goes quite quickly. As a rule, a client arrives in Bulgaria for a week, is met by an agent and shown options for pre-selected housing remotely. If the client decides on one, an advance is made, and we immediately enter into a deal.

The whole process takes a maximum of a week. Take on account – seller should have the documents ready far before deal, and the buyer must ensure that the funds are prepared for the transaction.

The real estate prices in Bulgaria, 2024, include lawyer and a notary spendings. The amount depends on the rate asked by the specialist. For example, a notary takes 4% of the cadastral value for a transaction. The cadastral value depends on the date the house was built. In older houses it can be even 30% of the market value, but the newer the house, the smaller this gap is.

In general, Burgas real estate registration costs are no more than 5% of the cost of the property.

Having purchased an apartment, the owner must enter into an agreement with the management company for the maintenance of the complex. This includes cleaning the area, cleaning the pool, gardener services, etc. For this, the management company charges from €4 to €12 per sq. m. m per year. For an apartment of 30 sq. m, the annual maintenance fee will average €240.

Annual payments also include property taxes. It depends on the location of the property and is set by the municipality. Tax rates are low – from 0.1 to 0.45% of the appraised value of the apartment. You will need to pay from €20 per year for a studio, for huge apartments – up to €70.

Capital gains tax is payable on sale. Take on account – it is 10% of the difference between the sale and purchase prices.

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