Real estate market in Bulgaria in 2023 – forecasts and prices
The Bulgarian property market in 2023 is filled with quite opposite expectations. On the one hand, the year of 2022 was successful for both sellers and buyers of apartments and houses in Bulgaria – prices increased significantly, while the number of transactions grew. This positive trend allows us to look to the future with optimism. On the other hand, the market is negatively affected by the high inflation expectations and instability in domestic and international politics. Traditionally, at the beginning of the year, Apart Estate offers its clients an analysis of the real estate market in Bulgaria in 2023. We will help you understand the main trends, familiarize you with price expectations, and draw your attention to the most attractive market segments.
Key trends in the Bulgarian real estate market in 2023
According to most experts, the situation on the Bulgarian property market in 2023 will not be as successful as last year. Still, deep falls and stagnation are not expected. Most specialists agree that the market will look for a balance and stabilization after an incredible boom of prices and transactions in 2022. In general, this trend will continue in most regions of Bulgaria.
Other notable trends include:
- Decreased interest in investment property in big cities. High prices, rising mortgage rates, and insufficiently fast rental fees growth lead to longer return on investments and investor disappointment. According to some estimates, real profit from purchased property in some cities can be expected only in 25-30 years due to the high purchase price. At the same time, resort real estate, for example, the one in St. Vlas, Pomorie, Sozopol and apartments in Burgas and Varna remains a profitable investment.
- Increase of interest in buying apartments for growing children. Many parents consider buying a studio or a small one-bedroom apartment for their kids instead of renting property. The main attention is paid to real estate from developers. The reasons are lower prices and the ability to gradually finish repairs in accordance with personal desires and taste.
- Slowing down the deal closure process. It is expected that buyers will be choosing flats and studio apartments more carefully and slowly, hoping for a large number of offers or waiting for a mortgage decision.
- Low credit rates in Bulgaria. This will allow you to profitably buy property by the sea and in large cities.
- Limited number of offers. Due to the economic and political situation, the market does not have a large selection of apartments and houses. Active construction brings diversity, but this process is typical for industrial and business centers, as well as resort towns, for example, Sozopol, Pomorie, and St. Vlas.
- Demand for apartments in panel buildings erected in 1980-1990’s. The living area in such apartments is usually larger than in new buildings, and the buyers pay for the actual space which they will use, and not for the common parts. Thanks to the renovation and energy saving policy, implemented major repairs, such flats are warm and dry. In Burgas, apartments in panel buildings are especially popular in the neighborhoods of Zornitsa, Slaveykov and Bratya Miladinovi.
- High interest remains in the apartments in the sea and mountain resorts, as well as in countryside cottages and townhouses. Traveling through the countryside near large cities, you will see how old houses are being restored, new cottages are being built, gardens and plots are being developed. Many people permanently living in cities buy cottages as a summer house instead of a second apartment, spend holidays and weekends there, enjoy nature, and a quiet, peaceful life.
Prices for apartments and cottages in Bulgaria in 2023
It is worth paying special attention to the issue of the Bulgarian property price trends separately.
In Apart Estate, we expect that real estate in the majority of the Bulgarian largest cities, including Burgas and Varna will stay expensive. Apartments and townhouses in prestigious neighborhoods, in the city center, as well as in new and high-quality old residential buildings will not cost less than in the end of 2022.
This trend is valid for such Burgas neighborhoods as Lazur, Vazrazhdane, Bratya Miladinovi, Sarafovo, and Zornitsa. It is going to be hard to find a flat with a square meter for less than 1,800-2,000 euros. Even the property without repair with the commissioning terms in 2024-2025 is expected to cost about 1,500 euros/ sq. m.
Apartments in the Lazur neighborhood are unlikely to be cheaper than 1,200 euros/ sq. m. In Zornitsa, prices per square meter are expected at the level of 1,000 euros and above, in the Slaveykov neighborhood – at 800-900 euros.
We foresee the similar trend in Sozopol and Pomorie. Real estate in the downtown, flats with sea views, and low service charge or property in luxury complexes like Green Life and Admiral will cost much and will continue to be in high demand.
Despite the demand and the limited number of offers, it is unlikely that property prices in Bulgaria will increase much in 2023. The suggested growth will be no more than 10%, which is below inflationary expectations.
There is one more trend which can’t be ignored. Prices for the living and commercial real estate in remote urban areas and in poorly maintained and neglected buildings are expected to fall. Today, buyers refuse to pay a lot of money for such apartments. They are looking for more profitable offers that are easy to sell.
Another 2023 tendency is the expectation of discounts. Many clients immediately announce that they want a 15-20% discount on a studio, one- or two-bedroom apartment or a townhouse. The requirement applies to all kinds of sea and countryside property as well.
The situation on the property market in Bulgaria in 2023 is quite stable. According to Apart Estate experts, the demand will remain high, the number of offers will be limited, and the possibility of obtaining a loan or mortgage will allow potential customers to buy apartments and houses in accordance with their wishes.