Bulgarian real estate market — results of 2022, trends and forecasts for 2023

The Bulgarian real estate market experienced a real boom in 2022. According to data from the Registry Agency, the number of transactions in the country during the first 9 months of 2022 was the highest in the last 15 years. According to Bulgaria Avenue specialists, prices for apartments and houses also showed unprecedented growth. A small decrease in sales was noted in the last quarter of the year, but many experts believe that this trend is of a natural character. What will happen to the Bulgarian real estate market in 2023, where will apartments be sold, which segment will become the most in-demand, and who will be buying property in Bulgaria in 2023 – we discuss with our specialists.

The most popular property in Bulgaria – analysis of 2022 transactions

According to preliminary data, in 2022 a buyer could be found for any property. Foreigners and Bulgarian citizens bought studios in Sunny Beach, two-room apartments with sea and mountain views, huge apartments on the first line next to the beach. It is expected that in 2023 the trend will continue with small adjustments. 

Despite fairly high prices, new-build properties with completion dates in 2023-2024 remain in demand. Many clients are ready to wait for Act 16 provided there is a guarantee of timely receipt of quality property from a reliable developer. 

Note that in response to consistently high demand, construction companies have stepped up building activity. For example, in the first quarter of 2022 alone, permits were issued in Burgas for the construction of 141 residential buildings, and in Varna almost twice as many. Currently, it is expected that the set pace of development will continue. 

If we talk about location, clients are interested in property in cities that are comfortable to live in. These are mainly Varna and Burgas. In the Burgas region – the cities of Sozopol, Pomorie, Sveti Vlas. Here you can find good work, choose a kindergarten and school for children, an interest club, use the services of medical centres and receive social services. 

It is precisely in these cities that a rapid increase in prices and the number of transactions is being observed. 

In 2023, the loss of interest in low-liquidity housing will continue. Clients prefer high-quality property, ignoring apartments in remote complexes and residential buildings without Act 16. If buyers are satisfied with the price but the apartment is located in a neglected building or residential complex, they continue to search for a more acceptable price-quality combination.

Another trend of late 2022 – 2023 is steady demand for premium-class property. Luxurious apartments with sea views, maisonettes and penthouses attract the attention of buyers focused on living or spending holidays in their own home and not sparing money on its purchase.

Interest in cottages, townhouses and houses near large cities remains stable. Property of this type remains popular among young families with children and foreigners. Clients are looking for houses and villas in Kamenar, Shkorpilovtsi, and Asparuhovo.

Who will be buying property in 2023

The expected profile of property buyers in Bulgaria in 2023 looks interesting. It is assumed that the main percentage of clients will be Bulgarian families with a monthly income of more than 3,500 leva. Their goal is to buy a house, townhouse or apartment for living. For some, this will be their first home. Others will try to take advantage of the opportunity to sell their apartment at a high price and buy a larger apartment in a convenient area with developed infrastructure. 

Most of these clients plan to use a mortgage or consumer loan. Mortgage transactions are expected to account for about 40%. In approximately another 40% of cases, buyers take out a loan of up to 30% of the price of the apartment being purchased. 

Another important category of clients is investors. Despite the fact that in 2022 the share of buyers acquiring property for investment purposes fell, it is expected that in 2023 demand will recover. The main reason is the desire to preserve accumulated funds against the backdrop of inflation and profitably resell the purchased housing.

The trend of foreigners acquiring property in Bulgaria will continue. These are mainly citizens of Ukraine, Germany, the Czech Republic, Poland, Israel, and Kazakhstan. They are looking for apartments in seaside resorts – in Sunny Beach, Byala, Obzor, Sveti Vlas, and Sozopol.

The 2022 real estate market almost completely lost clients with incomes of less than 2,000 leva per family. It is difficult to expect that in 2023 their purchasing power will recover and they will return to the market.

Apartment prices in Bulgaria in 2023

In 2022, property prices grew constantly. This concerned both ready-built housing and new developments. Developers changed prices with enviable regularity, and property owners were not shy about joining the "who bids higher" game, especially if several buyers were interested in their apartment at once. 

Due to inflation and the constant rise in prices for construction materials and services, a similar trend will continue in 2023. The small number of offers on secondary housing will also contribute to this.

An analysis of expected property prices shows the following picture:

• Apartments in the city centre will be available to buy for €1,800–2,000/sq. m. Prices for luxury property near the Seaside Park in Varna or with sea views in Burgas will probably reach €2,300 per square metre. Apartments with 2024 completion dates, with rough finishing, on the ground floor or with a large percentage of common parts will be cheaper. Similar apartments in the Lazur district (Burgas) or Briz (Varna) will be available for €1,700/sq. m.
• It is expected that prices in more remote districts will be more affordable. Thus, in the Meden Rudnik district of Burgas a studio or two-room apartment will be available to buy for €730–800/sq. m. In the Vazrazhdane district (Varna), the square metre varies from €900 to €1,500.
• Property at the resorts is traditionally cheaper, although there are exceptions here as well. 
• Thus, when buying an apartment or studio in Sunny Beach, one should count on an average price of €813/sq. m.  
• An apartment in Pomorie will cost on average €1,020/sq. m. High prices hold both for property in buildings without a maintenance fee and in residential complexes.
• Studios, two-room and three-room apartments in Sveti Vlas can be acquired for €1,010 per square metre. Prices for apartments with a sea panorama reach €1,400/sq. m.
• Property in Sozopol is also expensive. On average, a square metre when buying will cost €1,140. Apartments near the sea with wonderful views – €1,550/sq. m. 
• High prices will also remain for property at the Saint Constantine and Helena resort. The expected average cost of a square metre is €1,450. Apartments with a sea panorama will be offered for €1,600–1,800/sq. m.

The new year, 2023, promises to be lively and full of challenges on the real estate market. Bulgaria Avenue staff are looking forward to welcoming new and returning clients. As before, we will be pleased to work with everyone interested in buying property. We will continue to search for apartments and houses that fully meet your wishes, we will carefully check the cleanliness of documents and cooperate only with reliable developers.