Residential Real Estate - Bulgaria

Bulgaria

The Residential Real Estate market market in Bulgaria is predicted to attain a value of US$304.80bn by the year 2024.
Furthermore, it is anticipated that the market will display a Compound Annual Growth Rate (CAGR) of 4.03% between 2024 and 2029, ultimately leading to a market volume of US$371.40bn by 2029.
It is worth noting that when compared on a global scale, China is expected to generate the highest value in the Real Estate sector, amounting to US$112.9tn in 2024.
Despite economic challenges, the residential real estate market in Bulgaria is experiencing steady growth due to increasing demand from both domestic and foreign investors.

Key regions: Europe, Brazil, France, Asia, United States

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Analyst Opinion

The Residential Real Estate market in Bulgaria has been experiencing significant growth and development in recent years.

Customer preferences: Customer preferences in the Bulgarian residential real estate market have been influenced by several factors. One of the key preferences is for properties in urban areas, particularly in major cities like Sofia, Plovdiv, and Varna. This is driven by the convenience and amenities that urban living offers, such as proximity to schools, workplaces, and entertainment options. Additionally, there is a growing demand for modern and well-designed properties that offer a high level of comfort and functionality.

Trends in the market: One of the prominent trends in the Bulgarian residential real estate market is the increasing popularity of apartment living. This can be attributed to the rising urbanization and the desire for a more compact and low-maintenance lifestyle. As a result, developers have been focusing on constructing high-rise apartment buildings with modern amenities and services to cater to this demand. Another trend is the growing interest in sustainable and energy-efficient properties. Buyers are increasingly looking for homes that are environmentally friendly and offer long-term cost savings in terms of energy consumption.

Local special circumstances: Bulgaria's accession to the European Union in 2007 has had a positive impact on the residential real estate market. It has attracted foreign investors and increased demand for properties, particularly in popular tourist areas along the Black Sea coast. The country's affordable property prices compared to other European countries have also made it an attractive option for both local and international buyers. Additionally, the Bulgarian government has implemented measures to stimulate the real estate market, such as offering incentives for foreign investors and introducing a fast-track process for obtaining residency through property investment.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the residential real estate market in Bulgaria. The country's stable economic growth and low interest rates have made it easier for individuals to secure financing for property purchases. Additionally, the increase in disposable income and the growth of the middle class have boosted demand for residential properties. Furthermore, the government's efforts to improve infrastructure and attract foreign investment have enhanced the overall attractiveness of the Bulgarian real estate market. In conclusion, the Residential Real Estate market in Bulgaria has experienced significant growth and development due to customer preferences for urban living and modern properties, as well as the country's accession to the European Union and favorable macroeconomic factors. These factors have contributed to the increasing popularity of apartment living, the demand for sustainable properties, and the overall growth of the market.

Methodology

Data coverage:

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

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, 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:

Data is modeled using current exchange rates. 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.