Property Investing In Bulgaria’s Capital Sofia

Sofia, as Bulgaria’s capital, offers foreign purchasers a wonderful investment opportunity. Many foreigners actually miss the idea of investing in Sofia, in favour of the faster growing costal resorts such as Sunny Beach and the ski resort of Bansko.

Last year, however, Sofia saw the greatest property value growth in Bulgaria, showing that there is a great deal of potential in the capital. Sofia is approximately 550 metres above sea level, situated at the bottom of Mount Vitosha. Interestingly, Sofia is actually the highest capital in Eastern Europe and has a population of around one million.

Sofia has had a relatively troublesome history and has only recently become fully free from communism. Since its liberation, Sofia has developed itself as the financial, political and cultural centre of Bulgaria.

As well as being historically important, Sofia is also culturally and geographically significant. Throughout Sofia, there is an enormous selection of pavement cafes, restaurants and large parks. One of the great plus points of Sofia is its wonderful location; within half an hour of the city is the Vitosha National Park as well as the superb skiing in Vitosha. Bulgaria has started a campaign to host the 2014 Winter Olympics; if it is successful, Sofia is likely to see even greater growth.

A leading Bulgarian lawyer has commented that ‘as far as the smaller investor is concerned, there is an over saturation at the Black Sea, so Sofia offers an attractive alternative’. He also stated that between the years of 2002 and 2005, property prices in Sofia have doubled.

Prices of Property in Different Parts of Sofia

One-bed apartments in Sofia can be bought for around 50,000 Euros. Although these are considerably smaller on average than the one-bed apartments on the coast and in seaside resorts, which are typically around the 50 to 60 square metre-sized apartments.

As with most large cities, central apartments of a reasonable size are in huge demand, with a two-bedroom apartment of approximately 100 square meters setting you back in excess of 75,000 Euros.

Slightly out of the centre of the city, there are more bargains to be found, with larger properties of four or five bedrooms costing around 70,000 to 90,000 Euros. One of the exceptions to this is the up-market Lozenets, where prices are often higher than the very central areas. A two bedroom apartment of 120 square metres could cost as much as 160,000 Euros, in this area.

Central apartments will always be in reasonable demand for both locals and tourists. Most of the nightlife, bars and restaurants are around the central areas, making such apartments popular, if a little noisy!

Further outside the centre, towards the National Park and ski resorts, the entertainment is not quite as lively. However, the scenery becomes truly spectacular, attracting locals seeking a quieter life, whilst still being close to the city centre.

Lozenents, as one of the most salubrious areas of Sofia, attracts the high earning locals, as well as visitors who want to feel that they are staying in the lap of luxury.

Rental Market in Sofia

Renting a property in Sofia is relatively easy, with several market options available. More foreign companies are now starting to open up offices and branches in Bulgaria where the workforce is qualified, but a great deal cheaper than in the UK. As a result, there is an increasing demand for good quality apartment accommodation for the wealthier employees, in the capital.

Sofia is also a popular tourist destination, due to its wonderful location combining cultural excellence with much historical significance.

Sofia offers a wealth of opportunities for any investor, regardless of their target market. As well as already being a fascinating place to stay, Sofia is also a city that is on the up, both as a tourist destination and an economic powerhouse.

Ignore Sofia at your own peril!