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Bulgaria: House Prices, Rents, and Rental Yields

Last Updated: Sep 17, 2009

Yields down again, despite house price collapse

Last Updated: Sep. 17, 2009
SOFIA CENTRE - Apartments COST (€) YIELD (p.a.) PRICE/SQ.M. (€)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
60 sq. m. 101,100 380 4.51% 1,685 6.33
85 sq. m. 142,970 507 4.26% 1,682 5.97
120 sq. m. 211,080 732 4.16% 1,759 6.10
180 sq. m. 309,240 1,240 4.81% 1,718 6.89
SOFIA SUBURBS - Apartments
60 sq. m. 67,560 337 5.99% 1,126 5.62
90 sq. m. 100,260 461 5.52% 1,114 5.12
120 sq. m. 152,520 673 5.30% 1,271 5.61
170 sq. m. 221,680 950 5.14% 1,304 5.59
SKI RESORTS - Apartments
40 sq. m. 45,360 n.a. n.a. 1,134 n.a.
60 sq. m. 63,480 n.a. n.a. 1,058 n.a.
80 sq. m. 86,960 n.a. n.a. 1,087 n.a.
120 sq. m. 115,080 n.a. n.a. 959 n.a.
BLACK SEA COAST - Apartments
50 sq. m. 47,400 n.a. n.a. 948 n.a.
85 sq. m. 106,080 n.a. n.a. 1,248 n.a.
120 sq. m. 166,560 n.a. n.a. 1,388 n.a.
170 sq. m. 221,510 n.a. n.a. 1,303 n.a.
Districts researched:
Sofia centre: Doctor's Garden, Ivan Vazov, Iztok, Lozenets, near the Medical Academy, and Oborishte.
Sofia suburbs- Dragalevtsky, Borovo, Manastirski Livadi, Buckston, Vitosha, Gotse Delchev, Student's Town, Strelbishte
Krasno Selo, Boyana, Geo Milev, Ovcha Kupel, Dianabad, Beli Brezi, Hladilnika, Poduyane and Slatina
Ski resorts: Bansko and Borovets
Black Sea Coast: Bourgas and Varna
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Bulgaria has suffered a catastrophic drop in house prices this year (2009). The average price of dwellings has dropped from 1418 LEVs/per square metre (sq. m.) in Q3 2008, to 1075 LEVs/sq. m in Q2 2009.   However the Bulgarian LEV is pegged to the Euro, so dollar-based investors will not have done so poorly.

When prices rose in Bulgaria during the boom years, there was a significant decline in gross rental yields, a fact noticed by the Global Property Guide in early 2007. 


  • In 2006, central Sofia yields were over 10%. 
  • By 2007, yields of 7% were more typical.  
  • By 2008, yields in central Sofia were under 5%. 

It is worrying that despite the significant drop in house prices, yields in central Sofia are down again this year – and are between 4.2% and 4.8%.  Suburban Sofia yields have also moved slightly down to 5.2 to 6%. 

Data is not available for ski resorts and the black sea coast, because rents for those types of units tend to be seasonal.

Bulgaria’s very low yields are an unhappy sign.  We urge investors and buyers to wait, till things get better.

 

Bulgaria - more data and information

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