Bulgaria entered the list of high-income countries

For the first time in 2024, Bulgaria entered the group of high-income countries. The corresponding data was published in the World Bank report. What does this mean, how does the World Bank determine which countries have high incomes, and whether this can affect the real estate market – the article of the Apart Estate agency covers all these questions. 

Every year, the World Bank prepares a report that focuses on analyzing the gross income per capita in various countries. It is assumed that the amount of salary and additional income received allows us to divide all countries into 4 groups:

• Low income countries. This category includes South Sudan, Burundi, Central African Republic, Mozambique, Afghanistan, Tajikistan, Yemen and others. The average annual income per capita in these countries is less than 1.145 thousand US dollars.
• Lower-middle income countries. Examples are Yemen, Morocco, Kyrgyzstan, and Lebanon. The average person here earns less than $4,515.
• Countries with higher-middle income – Ukraine, Algeria, Mongolia, Iran. Less than $14,005 per resident.
• In high-income countries, people earn on average more than $14,005. In 2024, this group includes most European countries, Canada, the USA, Australia, etc.

Such a classification is quite arbitrary, especially when we talk about countries in which the population receives high salaries, pensions and benefits. The fact is that one group includes states with an average per capita income from 14,005 to 140 thousand dollars per year, i.e. the difference is more than 100 thousand dollars.

The fact that Bulgaria is now considered a high income country is unlikely to affect the property market. With the average price of a studio apartment in Burgas being 38-40 thousand US dollars, a person with an income of 15 thousand dollars will have to save for it for 2.5 years, provided there are no other expenses.

Another negative factor is the discrepancy between the percentages of income growth compared to inflation. The average annual income per capita in Bulgaria in 2023 increased in the country by 1.8%. According to official data, inflation for the same period was 9.3%.

However, all these dry statistics do not give a complete picture of the real situation. Keeping in mind high inflation, purchasing real estate in Burgas, Sozopol, Nessebar, Sunny Beach and Sveti Vlas seems to be the best option for investing and preserving accumulated funds. As a result, the demand for the property by the sea in Bulgaria is constantly growing, as well as the prices.

The main share of buyers of studio apartments, flats and houses in Burgas and the sea resorts of the Burgas region are citizens of Bulgaria. Many of them buy apartments using a mortgage, others use savings. There is interest in real estate from developers as well as on a resale market. Many people are ready to invest in apartments in residential complexes in order to rent them out in the future. Others are planning to move in or resell the property.

Experts from the real estate agency Apart Estate constantly monitor the residential market of Bulgaria. We work with developers and apartment owners, select the best options for real estate by the sea, monitor prices and purchase conditions. Call us today to get the best offer for an apartment in Burgas, a premium apartment with sea views in Sozopol or a budget studio apartment in Sunny Beach.