New energy efficiency requirements for buildings in Bulgaria: how the property market will change

In response to the growing need for sustainable and eco-friendly development, Bulgaria is introducing new rules that will significantly affect the property market. From 1 January 2025, property valuers are required to take energy efficiency into account as a key factor when appraising the value of properties. This requirement is designed to raise the profile of environmentally friendly buildings and make them more attractive to buyers and investors.

Key changes in property valuation

Under the updated regulatory framework, energy efficiency is now an important element in calculating the market value of a property. Valuers are required to use data from the energy performance certificate, which contains the following information:

• The building's energy efficiency class (A+, A, B, C, etc.).
• Specific annual energy consumption in kWh/m².
• The types of energy-saving systems installed in the building.
• The heating source (gas, electricity, renewables, etc.).

Certificates are issued by registered specialists and are mandatory not only for new buildings but also for those that have undergone major renovation or reconstruction.

The legislative basis for the reforms

• The new requirements are based on laws that are already in force:
• The Energy Efficiency Act (EEA) – governs the certification and installation of energy-saving technologies.
• The Spatial Planning Act (SPA) – requires the inclusion of the energy certificate in the building's technical passport.
• EU Energy Efficiency Directives – adaptation to pan-European standards of sustainable construction.

These laws oblige owners to provide a certificate when selling, letting or transferring a property. The absence of such a document can complicate the process of concluding a transaction and reduce interest from buyers.

The impact of the new rules on the property market

Benefits for buyers and investors

• Savings on utility bills – energy-efficient buildings consume less energy.
• Higher liquidity – such properties will sell more quickly.
• Higher property value – buyers are willing to pay more for energy-saving homes.

What does this mean for sellers?

• Owners will be forced to modernise their properties – installing insulation, energy-saving windows, solar panels and modern heating systems.
• Energy-efficient properties will sell for more and faster than outdated buildings without certificates.

How will the rental market change?

• Lower utility bills for tenants, which will increase demand for such flats.
• Owners of energy-efficient properties will be able to let them at a higher price.

How will the new requirements affect construction?

• Higher quality of new-build developments – developers will focus on energy-efficient technologies.
• Incentives for the renovation of older buildings – owners will have an interest in modernisation.
• A lower carbon footprint – the use of renewable energy sources will become the norm.

The new energy efficiency requirements will bring about a qualitative change in Bulgaria's property market. Energy-efficient buildings will become the standard, and buyers and tenants will be able to make more informed choices. Owners would be well advised to see to the certification and modernisation of their properties in good time in order to maintain their competitiveness and appeal.