In 2023, the residential real estate market in Bulgaria is expected to remain calmer and more balanced than during the dynamic previous year. According to real estate agency Arco Real Estate, the forecast is for a slight cooling of interest due to factors such as inflation, the change, and the rise in mortgage rates, as well as the ongoing war in Ukraine.
Sofia - property prices remain high
Property prices in the capital are still high, even for the external regions of Sofia, such as Lyulin and Druzhba. The most active supply is in the regions of Malinova Dolina, Studentski Grad, Nadezhda, Lyulin, and Ovcha Kupel. The average property prices are in a wide range - between €1350 per sqm up to about €1800-1900 per sqm, depending on whether they are completed or not, the location, and the parking lots available. In the first quarter of 2023, according to data from Arco Real Estate, demand is oriented toward larger properties for living purposes. The homes sought by the company's customers are mostly two-bedroom apartments, possibly completed.
Plovdiv
Market normalization is also observed in the second largest city in Bulgaria - Plovdiv Demand is still more active than supply, with interest mainly in one- and two-bedroom apartments, preferably new construction. Depending on the characteristics of the property and its location, average prices can vary from €800-1800 per sqm.
Decline in transactions
A large decline in transactions on an annual basis is observed in Varna, where for the first quarter of 2022, the registered deals were 3471, or a difference of nearly 23.5%. The trend is similar to Burgas, where 1528 transactions were registered compared to 2139 in the last quarter of last year. The decline on an annual basis here is about 10% compared to the same period of 2022 when 1679 transactions were registered in Burgas. The total number of registered property transactions for the whole country in the first quarter of 2023 is 44,461 compared to 67,362 in the fourth quarter of 2022
Stagnation in holiday homes
The holiday property market experienced a slight stagnation in the first quarter of the year. The properties in the sea and mountain resorts are sought equally by Bulgarian citizens and foreigners, with Sunny Beach and Bansko as preferred by foreigners. The highest property prices in the mountain resorts are in Borovets (€60-65,000) and among those by the sea, in Sozopol (€55-60,000)
Inquiries for houses are increasing.
Buyers are inquiring about houses around the city of Sofia or at most 20-30 km away from the capital, as well as for small plots for single-family houses in regulation up to about €80,000–100,000 Currently, the supply of houses nearby Sofia is limited, and the prices are quite high.
