Real Estate - Bulgaria | Statista Market Forecast

The Real Estate market market in Bulgaria is expected to reach a projected value of US$394.40bn in 2024.
The market is dominated by the Residential Real Estate segment, which is projected to have a market volume of US$304.80bn in the same year.
Looking ahead, this segment is expected to grow at an annual rate of 3.43% between 2024 and 2029 (CAGR 2024-2029), resulting in a market volume of US$466.90bn by 2029.
In comparison to other countries, United States is projected to generate the highest value in the Real Estate market market with US$132.0tn in 2024.
Bulgaria's real estate market is experiencing a surge in demand from foreign investors seeking affordable properties and attractive rental yields.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Bulgaria has been experiencing significant growth and development in recent years. Customer preferences in the Bulgarian Real Estate market have been shifting towards urban areas, particularly in the capital city of Sofia. This is due to the increasing number of job opportunities and the desire for a modern lifestyle. Additionally, there is a growing demand for properties with amenities such as parking spaces, green spaces, and proximity to public transportation. One of the key trends in the Bulgarian Real Estate market is the rise of the rental market. Many young professionals and students are opting to rent rather than buy properties, as it provides them with more flexibility and freedom. This trend has led to an increase in the construction of rental properties, particularly in urban areas. Another trend in the Bulgarian Real Estate market is the growing interest in eco-friendly and sustainable properties. Buyers and renters are increasingly looking for properties that are energy-efficient, use renewable materials, and have a minimal environmental impact. Developers are responding to this demand by incorporating eco-friendly features into their projects. Local special circumstances in the Bulgarian Real Estate market include the availability of affordable properties. Compared to other European countries, Bulgaria offers relatively low property prices, making it an attractive destination for both domestic and international buyers. Additionally, the government has implemented various initiatives to encourage foreign investment in the Real Estate sector, further driving the market's growth. Underlying macroeconomic factors that contribute to the development of the Bulgarian Real Estate market include a stable economy and favorable interest rates. The country's economic stability has attracted foreign investors and increased consumer confidence. Additionally, low interest rates have made it more affordable for individuals to obtain mortgages and invest in properties. In conclusion, the Real Estate market in Bulgaria is experiencing growth and development due to customer preferences for urban areas, the rise of the rental market, and the demand for eco-friendly properties. Local special circumstances, such as affordable property prices and government initiatives, further contribute to the market's expansion. The underlying macroeconomic factors of a stable economy and favorable interest rates also play a significant role in the market's development.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Real Estate - Bulgaria

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