The Bulgarian property market has really grown over the last few years. In 2017 alone, home prices in all the major cities in Bulgaria went up by 10% on an average, much faster the average in the Eurozone (4.6%).
The data from Eurostat show hat Bulgaria is the seventh fastest growing property market in Europe, just behind Czech Republic, Ireland, Portugal, Hungary, the Netherlands and Latvia.
Indeed, there is good money to be made if you want to sell property in Bulgaria online in 2018. Home prices in Sofia, one of the least expensive capital cities in Europe have gone up to 1000 euros per sq. meter and in some cases, 1300 euros per sq. meter.
That is the same as the peak price levels last seen in the 2007 period, just before there was a property crash across Europe, including in Bulgaria. Now, Bulgarian property market has made up for the lost momentum and things are looking better than ever.
There are two reason why Bulgaria’s property market has been doing so well. Bulgaria had a reputation as a third world country in Europe – it was one of the poorest countries in the Eurozone.
Things have changed since then – Bulgarian economy is flourishing and growing at 3.3% every year, one of the fastest growing economies in the region. Unemployment is at a historic low and business activity is up. People have higher disposable incomes than before.
Another big change is that Bulgaria has emerged as a popular tourist destination. Over 9 million foreign tourists visited Bulgaria in 2017, and 8 million visited in 2016. Some of the places in Bulgaria such as Sunny Beach, a popular resort on the Black Sea Coast and Bansko, a top-rated ski destination, attract millions of tourists from across Europe every year. Sofia, the capital city of Bulgaria, is also quite popular with both holiday and business travellers.
A fast growing economy and a flourishing tourism sector are always good for a country that wants to emerge as a top overseas destination. Another factor that has helped Bulgaria is that it is a politically stable country and a peaceful one, in a region that has been hit by political uncertainty, economic crisis and authoritarianism.
Indeed, more and more foreign investors are now looking to invest in Bulgaria rather than in the neighbouring Turkey, which has been hit by a vicious strain of authoritarian politics under President Tayyeb Erdogan. Bulgaria appears to be a better alternative to another of its neighbours, Greece, which is still struggling to get out of a severe economic crisis.
However, the Bulgarian National Bank has warned about the property market getting ahead of itself. They have advised caution largely because of the high indebtedness of Bulgarian businesses and households.
The European Commission has also warned about the imbalances in the Bulgarian economy. Regardless, the fast rising economy and emergence of Bulgaria as a hub of tourism certainly indicate that property prices will be on the rise for years to come.