For the Bulgarian real estate market, 2022 was a particularly successful year. The nationwide house price index (according to the National Statistical Institute) rose by 14.6%, which is 9% more than in 2008, when the largest increase in house prices was last recorded.
What will happen to prices in 2023? What trends are emerging according to experts? We have prepared a brief overview of the situation on the property market in Bulgaria in 2022, as well as forecasts for 2023.
2022 – price review, top buyers
What happened to the prices?
By the beginning of the second quarter of 2022, a record was registered in the real estate market in Bulgaria - prices for studios, apartments and private houses increased by almost 15%, reaching their peak since 2008. Prices grew fastest in Varna, Sofia, Plovdiv, Nessebar, Burgas.
Price comparison in 2021 and 2023
| Studio | 2-room apartments | 3-room apartments | ||||
|---|---|---|---|---|---|---|
|
Nessebar
|
from €26,000 |
from €34,000
|
from €41,000 |
from €48,000
|
from €82,000 |
from €89,000
|
|
sunny Beach
|
from €13,000 |
from €19,000
|
from €28,000 |
from €35,000
|
from €32 500 |
from €39,000
|
|
Saint Vlas
|
from €23,000 |
from €30,000
|
from €42,000 |
from €49,000
|
from €44,000 |
from €51,000
|
|
Ravda
|
from € 36,000 |
from €42 900
|
from €42 500 |
from €47 500
|
from €54 500 |
from €60,000
|
|
Pomorie
|
from € 28 000 |
from €33 500
|
from €40,000 |
from €46 500
|
from €51,000 |
from €56 900
|
|
Sarafovo
|
from €32,000 |
from €38,000
|
from €39,000 |
from €45,000
|
from €92,000 |
from €97,000
|
|
Sozopol
|
from €61,000 |
from €66 900
|
from €64,000 |
from €70,000
|
from €101,000 |
from €105 500
|
|
Burgas
|
from €39,000 |
from €45,000
|
from €52,000 |
from € 58 000
|
from €76,000 |
from €82,000
|
|
Varna
|
from €43,000 |
from €50,000
|
from €83,000 |
from €90,000
|
from €114,000 |
from €120,000
|
By the end of 2022, Bulgaria, like many EU countries, was experiencing high inflation and rising mortgage rates. The growth in prices per square meter of housing in some cities has slowed down, while in others it has stopped.
Who were the main buyers?
- Bulgarians . Almost zero interest rates on bank deposits motivate local residents to invest their savings in real estate. The Bulgarians actively bought resort property on the coast for year-round possibility of arrival.
- Ukrainians . Because of the war, many citizens of Ukraine moved to Bulgaria. They bought housing on their own budget.
- British, Germans, Poles . They want to have a vacation home by the sea during the holidays and make a profit from renting out. We purchased studios, two-room apartments on 2-3 lines from the sea near supermarkets and bus stops.
- Israelis . We bought two- and three-room apartments by the sea in order to come on vacation in the summer for 2-3 weeks, and at other times to rent to tourists.
2023 - prices, trends, forecasts
What will happen to prices?
By the beginning of the II quarter of 2023, the level of prices for Bulgarian real estate is still at its peak. Although the activity of concluding purchase and sale transactions has subsided, experts are confident that prices will not fall in the coming months, but will remain at the same level.
In large cities (Sofia, Plovdiv, Varna), the number of purchase and sale transactions has decreased. But in the municipality of Nessebar, sales growth has been preserved: Nessebar, Sunny Beach, St. Vlas, Sozopol.
“Demand for resort real estate on the coast is still high. Prices have risen. Now is the right time for those who decide to sell their home. You can realize your object quickly enough and for a good price.
If you are planning to buy a studio or apartment by the sea, then keep in mind that due to high demand, objects with a favorable location are quickly sold. If you delay, you may miss out on the best deals.”
Based on an analysis of the macroeconomic forecast for Bulgaria published by the EU, experts believe that in 2023 the real estate market is likely to cool slightly. Some experts predict a fall in prices by 5-10%. Others are confident in the stability of current housing prices and expect a slight increase in the cost per square meter closer to the beginning of 2024. In their opinion, the market will need more time to cool down after a strong rise in prices.
“Whether property prices in Bulgaria will rise in 2023 depends on the rise / fall in the number of offers on the market. The Russians are not yet actively selling their property in the southern Bulgarian resorts. The reasons are the unfavorable euro exchange rate (most owners decided to wait a bit) and the difficulty of flying to the republic to complete a sale and purchase transaction (for now, you need to fly through Turkey or, for example, Armenia). This significantly affects the number of offers on the market and affects the stability of real estate prices. So far, demand has outpaced supply. So there are no prerequisites for a fall in the cost per square meter.”
What trends and forecasts are outlined?
Experts are sure that there will be a high interest in real estate in resort towns: Sozopol, Pomorie, Nessebar, Sunny Beach, St. Vlas.
“Real estate in the sea and mountain resorts of Bulgaria is experiencing a boom in demand. We receive up to 100 applications per week. Foreigners want to buy housing by the sea so that they can come with their families in the summer and enjoy their vacation. Some plan to move to Bulgaria after retirement and live near the sea. Local Bulgarians plan to move away from the big cities closer to the sea, while others want to safely invest their savings amid soaring inflation.”
Private houses and cottages in villages near large cities will also be in demand. Already actively built townhouses, country cottages. Owners of old private houses carry out pre-sale repairs.
An increase in mortgage rates is expected (it is already observed in some EU countries). If the forecast is justified, the value of real estate will decrease.
A consistently high demand for resort housing is predicted from Bulgarians who want to keep their savings from inflation and invest them in real estate. So a sharp drop in the cost of residential properties is not expected.
“In recent years (2019-2021), there has been a steady increase in the value of real estate in Sofia, Plovdiv, Varna, Burgas, Nessebar. But against the background of the military conflict in Ukraine, the rising cost of energy and building materials, prices, especially for housing on the southern coast of Bulgaria, rose even more.”