Overview of the Bulgarian property market in the second quarter of 2021: trends and prices

The Bulgarian property market in the second quarter of 2021 showed steady growth in the number of sales of apartments, houses and land plots. Along with the increase in transactions, prices rose and, at the same time, the number of attractive, quality offers declined. Bulgaria Avenue offers a detailed overview of the Bulgarian property market in the second quarter of 2021, taking into account the main trends and prices.

The past year, 2020, was unique in its own way. On the property market you could find a huge number of favourable offers at low prices. Sellers from Russia and the United Kingdom tried to get rid of apartments and houses that they could not visit because of the pandemic. This trend was particularly pronounced in the second quarter of 2020.

A year later, the situation has fundamentally changed. It was in the second quarter of 2021 that demand grew and began to exceed supply. According to analysts, the increase in sale-and-purchase transactions in the second quarter amounted to 61.7% compared with the same period of the previous year. Such a figure signals the market's return to pre-crisis levels. At the same time as the growth in demand, prices also began to rise. As in the previous year, property continued to become more expensive in Varna, Burgas, Sofia and Plovdiv. However, the second quarter of 2021 also brought an increase in prices for apartments at seaside and ski resorts – last year this market had been in stagnation. Apartments became more expensive in Obzor, Elenite, Sveti Vlas, Sunny Beach and at the resorts of the Varna region. Interest in townhouses in major cities and in houses and cottages in coastal villages increased.

Where demand for housing in Bulgaria is highest

The largest number of property sale-and-purchase transactions in the second quarter of 2021 was concluded in Sofia (9,736) and Plovdiv (5,070). Varna is traditionally in third place. Here, during the same period, about 3,500 properties were sold, including apartments, townhouses and houses. Overall, according to the statistics, sales for January–June 2021 increased by more than 14%. This figure does not include data for the districts, where the statistics are also curious. Thus, in Kavarna the growth for the whole first half of the year amounted to 27.68% (535 properties sold), in Balchik – 21.5%. In Byala, however, sales fell by almost 10% (from 663 properties to 511). The situation in Burgas and at the seaside resorts of the Burgas region is optimistic. In the regional centre, about 2,000 property transactions were registered in the second quarter. Sales in Nessebar, including Elenite, Sunny Beach and Sveti Vlas, over the first 2 quarters of 2021 came to 2,257 apartments and houses, which is 32% more than in 2020. Significant growth was shown by Pomorie (32%) and Tsarevo (97%). 

What property was bought in Bulgaria in 2021

According to the statistics, apartments are in the greatest demand in Bulgaria. These are studios and two-room apartments in ordinary residential buildings in Varna, Burgas and Sveti Vlas. They are bought mainly by citizens of Bulgaria. There are two reasons – the absence of a maintenance fee and the possibility of permanent residence. 

Quite a few transactions are concluded on apartments in the complexes of Sunny Beach, Elenite, Byala and Balchik. Citizens of Germany, Israel and Canada are interested in this property with a view to letting it out and receiving additional income. 

The sale of apartments accounts for 66% of the Bulgarian property market. The share of houses and villas among all transactions is 28%. Demand for individual housing in villages and villa zones located near the coast has been growing since 2020. Property in Varna and in the villages of Bliznatsi, Asparuhovo, Goritsa and Shkorpilovtsi in the Varna region enjoys particular popularity. In the area

of Burgas, pensioners and families with children are interested in houses and modern cottages in Aleksandrovo and Kamenar. 

Incidentally, with regard to the Varna region, statistics show that the increase in sales of private houses from January to June 2021 stands at 167%. The bulk of the housing is bought on credit. Among the buyers are families whose adult members are between 25 and 40 years old. 

A new trend on the market is townhouses. The share of sales of townhouses is only 2%. The reason lies in the limited supply – townhouses enjoy enormous demand among families with children, but very few of them are being built. 

Land plots and commercial properties each account for 2% of the property market. 

With land, the situation is interesting. The main part of the territory in coastal zones belongs to natural parks or agricultural land. In the first case, transactions with land are forbidden. Agricultural land is in low demand due to weak interest in farming. When there is interest in individual construction, a house for demolition with a plot is most often bought. Statistically, such a transaction falls into the category of private house sales.

The commercial property market has recently occupied a weak position because of the general stagnation of business. Companies and sole traders choose to rent, while investing money in acquiring premises for trade and production appears risky.

Property prices in Bulgaria in 2021

Along with the growth in demand for residential property, a rise in prices is observed. Thus, in the Varna region in the second quarter, housing rose in price by 16–17%.

The bulk of transactions across the country are concluded at a property price of between 25,000 and 50,000 euros. This segment accounts for 38% of the market and includes one- and two-room apartments in Varna and Burgas and two-room apartments at the resorts of Saint Constantine and Helena, Sunny Beach and in Balchik. 

Sales of property priced up to 25,000 euros account for 36% of the Bulgarian market. These are mainly studios in complexes with swimming pools and a maintenance fee, intended for holidays.

Around 16% is made up of sale-and-purchase transactions for housing priced between 51,000 and 100,000 euros. These are two- and three-room apartments in Varna and Burgas in new-build developments and from private owners. Also included in this price segment are townhouses from developers without furniture or finishing works.

The next price segment in the second quarter of 2021 took up just 6% of the property market – this is premium-class housing and modern cottages priced between 100,000 and 250,000 euros. However, according to bank analysts, sales in this segment may soon grow – already now the average size of a mortgage loan is 125,000–130,000 euros.

The share of transactions for the sale of premium-class property priced from 250,000 euros is only 1%. These are luxury apartments and modern villas by the sea on the outskirts of Varna and Burgas.

The situation on the Varna property market

The rise in prices for apartments in Varna is an accomplished fact. In almost a third of the city's districts, a square metre costs on average more than 1,000 euros. Apartments at such prices are sold in the districts of:

• Morska Gradina – the average price per square metre is €1,464;
• Grătska Mahala – €1,301;
• VINS – €1,253;
• Obshtinata – €1,247;
• Sportna Zala – €1,114;
• The districts of Chaika, Operata, Tsentăr, Obshtinata, Chataldzha, Chervena Ploshtad, Neptun and others – from €1,000 to €1,075 per sq. m. 

If you try, in the districts of Vladislav Varnenchik, Kaysieva Gradina and Văzrazhdane 4 you can find housing priced at 700 euros per sq. m.

The increase in demand for property in Bulgaria in the second half of 2021 is a natural phenomenon for a stabilising market. In the opinion of the specialists of Bulgaria Avenue, the stabilisation may be temporary. Further upheavals could be associated with price growth due to the lack of quality offers. In our catalogue of Bulgarian property you can find attractive offers for the sale of housing in Varna, Burgas and at all the seaside resorts. Send us an enquiry and we will find you an apartment or house in line with your budget and wishes.