Urban Property in Bulgaria: Apartments, Studios, Houses

Urban property on the Bulgarian coast has always been in demand, both with locals and with foreign investors.

The largest seaside cities in Bulgaria are Varna and Burgas. Over the past couple of years, urban property prices have risen by 15%. In 2019 the market stabilised and forecasts for 2020 are favourable. According to national statistics, a 7–10% average rise in property prices is expected for 2020. This is due to Bulgaria's and Europe's growing economies and the absence of preconditions for a crisis that could cause a drop in property prices.

Mortgage terms have also become attractive. The interest rate is currently 2.7% p.a., while ten years ago it was 8–10%.

The Property Investment Association published its second-quarter report; most property was bought in Sofia, Plovdiv, Varna and Burgas. Most buyers are citizens of Israel, Europe, America, Russia and Ukraine. It's not difficult for a Russian, Israeli or European to relocate to Bulgaria, so many buy urban apartments for themselves. Renting out urban property is also profitable. Investing in urban property in Bulgaria is a reliable way to preserve and grow your capital. Price growth is guaranteed.

Which Coastal City in Bulgaria Is Best for Living?

The most in-demand coastal settlements in Bulgaria are large cities that have all the necessary infrastructure for permanent residence.

Everyone coming to Bulgaria for permanent residence should first understand for themselves what they'd like, where they prefer, and the purposes of buying property.

Varna and Burgas are the best coastal cities for living in Bulgaria.

Varna is located on the northern coast and is the Sea Capital. In just 40 minutes you can fly to Sofia (distance — 600 km). Construction of the "Hemus" motorway connecting Varna and Sofia began in 2019. The road is expected to open in 2023–2025.

Burgas is located on the southern coast of Bulgaria, 400 km from Sofia, and is also connected to the capital by motorway.

Every year new projects appear in Varna and Burgas, and funds are invested to improve quality of life.

The resort/seaside cities of Varna and Burgas have excellent infrastructure — a Sea Park about eight/nine km long along the sea, an old part of town, a theatre, opera, markets, hospitals, cafés, restaurants, shops and more.

In 2017 Varna received the title "Youth Capital", due to the large number of public and private higher education institutions. In 2019 Varna was awarded the additional status of "Sports Centre of Bulgaria".

Many foreign students receive education at the Medical, Dental, Technical and Economic universities. Faculties are available in Bulgarian and English. There are private universities, for example the University of Cardiff, which issues an English diploma, or the American University.

If you're planning to relocate with your family and your task is not only to establish yourself but also to give your children an excellent education, Varna is absolutely suitable.

Burgas has the famous Free University and a wide choice of schools and preschool institutions.

Advantages of Varna and Burgas:

• higher education institutions;
• a wide choice of high schools, schools, kindergartens and nurseries;
• highly qualified doctors and professors — in short, quality medical care;
• convenient transport — besides city transport and railways, the presence of airports;
• employment opportunities;
• markets, shops, supermarkets and shopping centres;
• cultural life — opera, ballet, theatre;
• a broad range of services in various fields.

Every year more locals relocate from small towns/villages/settlements to larger cities to pursue self-fulfilment.

Foreigners consider buying Bulgarian urban housing for permanent residence and investment, based on factors such as: quality of life, low prices, absence of a language barrier, location, quality of services, stability, Christian religion and similar mentality.

In a large city, it's easy to get a job or start your own business. There's a labour shortage — the main thing is desire.

The greatest interest among foreign clients is in Varna's districts: Briz, Chayka, Vins, Levski, Sportna Zala, Chataldzha, Generalite, Okrazhna Bolnitsa, Cherven Ploshtad, Grutska Mahala and the Centre.

Popular districts of Burgas among visiting buyers: Izgrev, Zornitsa, Lazur, Tsentar, Slaveykov and Bratya Miladinovi.

How to Buy Urban Property in Bulgaria on an Instalment Plan

Developers in recent years have significantly improved the quality of urban property construction, and all standards are being met. Major developers follow modern technology, competing with each other in the use of the best construction materials.

On the urban property market, it's more profitable to buy property in Bulgaria on an instalment plan. An interest-free instalment plan for an apartment from a developer at the very beginning of construction can be obtained for up to 3 years, while choosing the very best flat.

The payment scheme can be individually agreed with many developers.

Standard Bulgarian payment scheme when buying at the construction stage:

• 30–40% first payment upon signing the preliminary contract;
• 30% upon receipt of ACT 14 (rough construction);
• 30% upon receipt of ACT 15 (completion of construction);
• 10% upon receipt of ACT 16 (handover of the building for occupancy).

The price of an apartment in a new building with ACT 16 will be 20–25% more expensive than at the construction stage. The cost of a new apartment in the city on the resale market differs significantly from prices at the construction stage.

Most builders in major cities hand over apartments in BDS (Bulgarian State Standard) condition — this means floors are screeded, walls are prepared for painting, and utilities are brought in. The cost of finishing per m² with materials is about €50–60.

For example, in central Varna, the cost per m² at the construction stage is €900–1,000. Once completed, prices rise to at least €1,300 per square metre.

In small coastal cities, property prices are much cheaper. In Byala, Obzor, Nessebar and Sveti Vlas, you can profitably buy a seaside apartment, but the settlements' infrastructure is weaker, the choice of properties on instalment plans is smaller and price growth is lower compared with major cities.

Commercial property in Varna and Burgas has always been in demand. Buying in the best districts and concluding long-term lease contracts can bring passive income of up to 7–10% annually. Buying commercial urban property in Bulgaria is one of the best investments, providing a guarantee of constant income.