At the beginning of the year, sellers and buyers of apartments and houses in Bulgaria are actively interested in how the Bulgarian real estate market will perform in 2023. Last year, 2022, set records for the number of transactions and prices for apartments in Burgas, Varna, and at seaside and ski resorts. Some experts believe the market has exhausted itself and is preparing for a decline. However, most analysts agree that the upward trend in Bulgarian housing prices will continue in 2023, as well as strong demand from both Bulgarian and international buyers. The Bulgarian real estate agency "Sherlock Homes" has prepared its own analysis to help our clients and readers decide whether to buy an apartment in Bulgaria in 2023.
Prospects for the Bulgarian Real Estate Market in 2023
The first three quarters of 2022 were unusually strong for the Bulgarian real estate market. All more or less valuable apartments, houses, and townhouses sold very quickly. Real estate prices rose steadily. A slight slowdown was noted in the fourth quarter, leading to speculation that 2023 will be a less successful year. However, this is only one perspective.
A comprehensive market analysis reveals the following trends:
Real estate prices in Bulgaria will continue to rise in 2023. This applies to both new builds and existing homes. The reasons are high inflation, rising costs of building materials, services, energy, and wages.
The structure of demand will change. Interest in real estate in Bulgaria is expected to remain high among Bulgarian residents. On the other hand, the Bulgarian government expects the country to join the Schengen Agreement by the end of 2023. This will serve as an additional incentive to attract buyers from other European countries.
Real estate remains a reliable investment. Due to Bulgaria's anticipated accession to the Schengen zone, high stock market volatility, and inflation, potential investors are choosing seaside apartments as a way to preserve their wealth and generate additional income. The opportunity to relax on the beaches of a beautiful country, enjoy delicious food, and enjoy beautiful nature attracts tourists, remote professionals, people seeking a new residence, and wealthy retirees. Therefore, renting property currently remains a successful way to run a small business.
The issuance of housing construction permits and the commissioning of new buildings will continue to increase.
New offers of existing housing will be limited. Russian citizens are reluctant to sell apartments in seaside resorts due to difficulties in arranging transactions and obtaining funds. Many British citizens, who had previously begun selling their Bulgarian properties, have decided to take their time and enjoy the opportunity to live in their seaside apartment. Therefore, apartments offered on reasonable terms are worth purchasing without hesitation.
Buyers will be waiting for discounts. Experts believe that transactions will be slow, with real estate buyers' primary strategy being to stall for time, squeeze every possible discount from the seller, and find the best deal.
Due to these factors, the Bulgarian real estate market is likely to remain stable in 2023. A drop in prices is not expected. However, the number of transactions may decrease due to a lack of good, high-quality offers.
Which Bulgarian real estate will be most attractive for purchase?
Different types of residential real estate will exhibit different trends. According to many experts, apartments in old, unmaintained buildings will be in low demand. This is especially true for homes that owners are trying to sell at unreasonably high prices.
Conversely, small apartments—studios and two-bedroom apartments—in Burgas, Sveti Vlas, Nessebar, and the surrounding resorts will be in high demand. Sherlock Homes notes increased interest in such properties from investors, young people, and retirees. Buyers are interested in both new buildings and renovated, furnished resale properties, especially if maintenance fees are low or nonexistent.
Demand for houses and townhouses is stable in cities and villages near Burgas, Sunny Beach, and Varna. Families with children and older couples dream of owning a home with land suitable for a swimming pool, sauna, playground, barbecue, or garden. Many are buying cottages for permanent residence. A similar trend is observed for townhouses. Families with children often purchase houses as summer cottages, where they can relax, escape epidemics, or celebrate important events.
A high percentage of foreigners will remain buyers of rural real estate. Their interest lies in purchasing both affordable houses that can be gradually renovated and occupied, as well as expensive, luxury villas with sea and mountain views in Sveti Vlas, Chernomorets, and Sozopol.
Interest in premium real estate will remain high. Large, luxury apartments with sea views, winter gardens, and proximity to parks and beaches in new and existing buildings sell, although not always quickly, steadily.
Property Prices in Bulgaria in 2023
As has been mentioned several times, the main trend in 2023 is rising real estate prices. The expected increase is 10%, and in rare cases, 15%. These figures are in line with expected inflation rates.
Apartments in the center of Burgas and Varna will sell in 2023 at a price of €1,500-€1,800 per square meter. Apartments in new buildings with fast delivery dates, in new buildings with designer renovations and high-quality furniture, will reach €2,500 per square meter. Similar prices are also predicted for studios and apartments in coastal neighborhoods, such as the Lazur neighborhood in Burgas.
In smaller coastal towns (Sozopol, Sveti Vlas, Nesebar) and in outlying neighborhoods of Burgas, such as Meden Rudnik, apartments can be purchased for €900-€1,400 per square meter. Based on the price per square meter, the most expensive will be studios with renovations in luxury residential complexes (the Cascades, Messembria, Harmony Suites, Fort Noks chains, etc.) or buildings with a low maintenance fee (for example, in the center of Pomorie or the Svoboda quarter).
In Sunny Beach, real estate is traditionally slightly cheaper. The average price per square meter will be €800-€850. Apartments and studios in outlying complexes will be affordable, especially if they have not yet been commissioned and are still in the Act 15 stage.
Cottages in the Burgas region will remain expensive, and this applies not only to villages like Kamenar and Laka. Prices for houses in the Strandzha villages of Brashlyan, Stoilovo, and Brodilovo will remain high. Prices for houses requiring renovations, heating systems, and solar panels can reach up to €250,000.
The new year 2023 is sure to bring sellers good buyers, and buyers beautiful apartments and houses that meet their needs and dreams. The specialists at Sherlock Homes will help you find your apartment at the best price or sell it, and organize the transaction transparently, quickly, and with careful documentation. In our catalogs, you'll find the best deals on resort properties in Bulgaria, apartments and townhouses in cities, as well as houses and cottages.
