Market Insights Financial Real Estate Residential Real Estate

Residential Real Estate Transactions - Bulgaria

Bulgaria

In Bulgaria, the Residential Real Estate Transactions market market is anticipated to witness a significant increase in transaction value.
By 2024, the projected transaction value for this market is expected to reach US$5.01bn.
Looking ahead, it is predicted that the market will continue to grow at a compound annual growth rate (CAGR) of 5.60% between 2024 and 2029.
This growth trajectory is estimated to result in a market volume of US$6.58bn by 2029.
Bulgaria's residential real estate market is experiencing a surge in demand from foreign investors due to its affordable prices and attractive location.

Key regions: Germany, Europe, Asia, United States, United Kingdom

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Analyst Opinion

The Residential Real Estate Transactions market in Bulgaria has been experiencing significant growth in recent years, driven by several key factors.

Customer preferences: One of the main factors driving the growth of the Residential Real Estate Transactions market in Bulgaria is the increasing demand from both domestic and international buyers. Bulgarian properties are becoming increasingly popular among foreign investors, particularly from countries such as Russia, the United Kingdom, and Germany. These investors are attracted by the relatively low property prices in Bulgaria compared to other European countries, as well as the country's beautiful landscapes and favorable climate.

Trends in the market: A key trend in the Residential Real Estate Transactions market in Bulgaria is the growing popularity of urban areas, particularly in the capital city of Sofia. The demand for properties in Sofia has been steadily increasing, driven by the city's strong economy, cultural attractions, and high quality of life. As a result, property prices in Sofia have been rising steadily, making it an attractive investment opportunity for both domestic and international buyers. Another trend in the market is the increasing popularity of holiday homes and vacation rentals in Bulgaria's coastal areas, such as the Black Sea coast. The country's beautiful beaches and affordable property prices have made it a popular destination for tourists, leading to a growing demand for holiday homes and rental properties. This trend has been further fueled by the rise of online platforms that connect property owners with potential renters, making it easier for investors to generate rental income from their properties.

Local special circumstances: One of the unique aspects of the Residential Real Estate Transactions market in Bulgaria is the presence of a large number of off-plan properties. Off-plan properties are properties that are sold before they are completed, often at a lower price compared to completed properties. This has become a popular investment strategy among both domestic and international buyers, as it allows them to secure a property at a lower price and potentially benefit from capital appreciation once the property is completed.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the Residential Real Estate Transactions market in Bulgaria. The country's stable economic growth, low inflation rates, and favorable tax policies have made it an attractive destination for property investors. Additionally, the government has implemented measures to attract foreign investment, such as offering residency permits to non-EU investors who purchase properties above a certain value. These factors have created a positive investment climate in Bulgaria, leading to increased activity in the Residential Real Estate Transactions market. In conclusion, the Residential Real Estate Transactions market in Bulgaria is experiencing significant growth due to increasing demand from both domestic and international buyers, particularly in urban areas such as Sofia. The popularity of holiday homes and vacation rentals in coastal areas has also contributed to the market's growth. The presence of off-plan properties and favorable macroeconomic factors have further fueled the market's development. Overall, the future looks promising for the Residential Real Estate Transactions market in Bulgaria.

Methodology

Data coverage:

Figures are based on total and average revenue of residential real estate transactions (sales).

Modeling approach:

Market size is determined by a 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 considered at a country-specific level.