Why Bulgaria

The Bulgarian real estate market reached new heights in 2020, boosted by low interest rates, stable economy and the increased demand of rural houses stimulated by the coronavirus (COVID-19) pandemic.



Bulgaria has become a favored destination for foreign holiday home investors—particularly those put off by high prices and overdevelopment in much of the Mediterranean. Bulgaria's Black Sea coast and unspoiled inland lakes and mountains offer an attractive alternative. The nationwide house price index rose by 7.29% (3.56% inflation-adjusted) during the year to quarter 1 of 2019, following year to year rises of 5.54% in  quarter 4 of 2018, 6.27% in quarter 3, 7.51% in  quarter 2 and 7.09% in  quarter 1, according to the National Statistical Institute (NSI). During the latest quarter, house prices increased 2.62% (1.42% inflation-adjusted) in quarter 1 of 2019.



In addition to second home buyers, Bulgaria is attracting other investors who are buying a range of property from new beach and ski developments to dilapidated farmhouses. Developments vary from apartment blocks and hotels to modern luxury complexes with swimming pools, solariums, restaurants and a host of other facilities.



Real estate prices are expected to go up because of the mortgage credit expansion of local banks and the rise in number of signed mortgage contracts. The almost zero interest rates on bank deposits have encouraged people to invest in real estate, and also encouraged purchases of pre-construction residential property.



Agricultural land is the current exception to the market growth due to some legal restrictions adopted in 2014, but the prices remain stable. Also, farm land sells cheaper since it is greatly fragmented, however landowners are looking to the government to speed up the process of land consolidation and re-allotment, which will result in larger parcels of land that are of sufficient size for efficient agricultural production, and which will attract more foreign investors once Bulgaria lifts the restrictions.