Bulgarian Property Sales

In City Centre Locations

Bulgarian property sales in the country's city centres are in huge demand according to Bulgarian estate agents and property professionals.

The vast majority of property enquiries are from investors looking for one- and two-bedroom apartments in Bulgaria’s three main cities, Sofia the capital, Varna the sea capital, and Bourgas, situated south on the Black Sea Coast. Following closely behind is the town of Plovdiv, which is the second largest city in Bulgaria. These cities are experiencing huge growth in both foreign investment and population from ex-pats and Bulgarian citizens.

• There is a huge demand for Bulgarian property sales in Sofia, where the posh locations of Lozenets, Iztok, Doktorski, Pametnik, Boulevards Vitosha, Patriarh Evtimii, and the downtown part of the capital attract the most investors.

• In the sea capital of Varna, the strongest interest is toward the downtown and Grucka Mahala quarter, followed by the areas near the sea garden.

• In Burgas, the quarters most in demand are the downtown and the coastal streets.

Estate agents are also reporting a growing interest in family homes in the suburbs, particularly among foreign workers and families relocating to Bulgaria. For example, in some parts of Sofia, property developers are building embassy suites for embassy staff and business people within gated communities. These new luxury one- and two-bedroom apartments are built within a multifunctional building with full access to restaurants, lobby bars, state-of-the-art fitness centres, video stores, hairdressing salons, banks, and other facilities.

Foreign multinational companies, such as ABB, Allianz, American Standard, Danone, Heidelberg, Kraft Foods, Lukoil Petrol, OMV, Shell, and Umicore, have established substantial subsidiaries in Bulgaria, and employees of these companies require Western European standard buildings to live in rather than the ugly, crumbling tower blocks from the communist areas that are scattered all around the city centre locations.

It is advisable when looking for Bulgaran property sales, not to invest in these old, crumbling tower blocks but to focus your investment attention on off-plan developments and newly refurbished properties in high-demand locations that appeal to both foreign and professional tenants. The average expected yield for Bulgarian property sales with a city centre location is around 7-8%, with an expected rental growth of 10% per annum, and capital growth of 20%.

Many Bulgarian citizens are earning a decent salary. This has led to a number of Bulgarian banks and building societies that are keen to join the property boom by offering attractive and less stringent mortgage packages to Bulgarian citizens, thus fueling the demand for Bulgarian property sales and generating a much more competitive marketplace.

If you decide to invest in a city centre property, make sure you enlist the services of a managing agent, as they will be the ones who will offer you the best advice on tenant demand in their area. The agent will also advise you on any legal issues concerning the tenancy agreement and provide an ongoing property management service, from obtaining tenants’ references and collecting the rent to general property management duties.

Currently, Bulgaria’s property values are among the lowest in any European country. Shrewd investors who bought property in Poland, Hungary, or the Czech Republic before they joined the European Union in 2004 have witnessed huge growth in the value of their property portfolios.

When it comes to investing in a Bulgarian property sales, the main cities of Sofia, Varna, Plovdiv, and Burgas are popular choices due to the long-term letting potential and capital growth.

The question is ... Which city can offer you the best return for your investment?

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