Is it worth buying property at the excavation stage in Bulgaria: pros and cons

Buying property at the excavation stage is one of the popular ways to invest in Bulgaria. This is relevant both for resort regions such as Sunny Beach, Nessebar, Pomorie and Sveti Vlas, where construction continues at an active pace, and for large cities such as Varna, Burgas and Sofia. Is such a step justified for a foreign buyer? Let's examine the advantages and risks.

Advantages of buying at the excavation stage

• Low price

The main advantage is the price, which can be 20–30% lower than that of finished properties. At the start of sales, developers often offer special terms and interest-free instalments.

• Flexible payment terms

Most Bulgarian developers work with flexible schemes: you pay in stages as the property progresses (for example, 30% on signing the contract, 40% on completion of the frame, 30% on receipt of Act 16).

• Freedom of choice

Buying an apartment at an early stage of construction, you can choose: the floor, the orientation (with priority given to southern, south-eastern, south-western exposure), the view from the window (sea, park, city, or courtyard), the layout, and turnkey finishing or without it.

• Investment appeal

After construction is completed, the price of the property rises. This makes buying at the excavation stage a profitable investment with the possibility of subsequent resale or rental.

Potential risks and disadvantages

• Delayed deadlines

Although Bulgaria has fairly strict rules for developers, the risk of delayed deadlines still exists. This is especially the case if a project is being built without sufficient financing or under conditions of economic instability.

• Risk of unfinished construction

In rare cases, a project may be suspended. To avoid this, it is important to check: the presence of a licence, the developer's experience, the title documents for the land, and the presence of a building permit (razreshenie na stroezh).

• Unexpected changes

Sometimes the final finish may differ from what was shown in the renders. Be sure to include in the contract an exact description of the materials and layout.

What to look out for when buying at the excavation stage

• Checking the developer. Work only with proven companies with a good reputation.
• Legal support. It is recommended to use the services of a Bulgarian lawyer or real-estate agent who will oversee the transaction. Our agency "Bulgaria Avenue" accompanies clients at all stages of the purchase.
• Monitoring the construction stages. Some real-estate agencies offer photo and video reports on the progress of construction.
• The presence of Act 14, 15, 16. These are construction acts confirming the legality of the property. Act 16 is particularly important — it is the permit for use.

Where in Bulgaria are purchases at the construction stage relevant?

In Varna the most interesting areas with new projects are:

• The Briz district — unique housing a step away from the Sea Park.
• Sveti Nikola — in the park zone of Varna.
• Vinitsa (north-east of Varna). 
• Pchelina quarter (Hristo Botev/Pchelina district). 

In Burgas the districts being actively built up are

• Sarafovo, 
• Meden Rudnik,
• Madika,
• Horizont.

There are quite a few new projects in Sveti Vlas and Nessebar,

Prices for apartments at the excavation stage start from €950/m², which makes Bulgaria still one of the most affordable EU countries for buying new housing.

Buying an apartment at the excavation stage in Bulgaria is a sensible and potentially profitable move, especially if you work with a professional agency and thoroughly check the developer. This approach allows you to obtain housing at a favourable price, choose the layout, and arrange individual finishing. However, do not forget about the risks and finalise the transaction in a legally competent manner.

If you are planning to buy property at the construction stage in Bulgaria, our experts will help you choose a reliable project and will accompany the transaction all the way to receiving the keys. Contact us — we know the Bulgarian market from the inside!