1. The Development of the
Real Estate Market in Bulgaria
Table of Contents
Introduction and Objectives.......................................................................................... 6
About Unreal Estates................................................................................................... 6
Methodology................................................................................................................ 6
Terminology................................................................................................................. 7
PEST Analysis............................................................................................................. 8
Political Factors........................................................................................................ 8
Ruling Party .................................................................................................... 8
EU confrontations............................................................................................ 8
EU support ...................................................................................................... 9
Trading Partners.............................................................................................. 9
Visa Free......................................................................................................... 9
Economic Factors .................................................................................................. 10
Economic Growth .......................................................................................... 10
Macro Economic Factors............................................................................... 10
Growth in Mortgages Market.......................................................................... 12
Growth in Housing Prices and Construction ................................................... 12
Social Factors ........................................................................................................ 12
Key Income Trends ....................................................................................... 12
Growth in Private Savings, Credits, Investments............................................ 13
Demographics ............................................................................................... 13
Cultural Perceptions ...................................................................................... 14
Technological Factors ............................................................................................ 14
Online Selection and Purchase of Property.................................................... 14
The Use of Modern Engineering Techniques and High-quality Materials ........ 14
Overview of the Real Estate Market in Bulgaria.......................................................... 15
The Pros ................................................................................................................ 15
The Cons ............................................................................................................... 17
The Trend .............................................................................................................. 18
Primary and Secondary Commercial Real Estate Markets.......................................... 19
Primary Commercial Real Estate Market in Bulgaria .................................................. 20
The Commercial Real Estate Sector in Sofia .......................................................... 20
Geographic Information about Sofia............................................................... 20
Socio-Economic Profile of Sofia..................................................................... 21
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2. The Hotel Segment (4 and 5 star) in Sofia ..................................................... 21
The Retail Sector in Sofia .............................................................................. 23
The Logistics Segment in Sofia...................................................................... 24
The Office Sector in Sofia.............................................................................. 25
Average Prices of Land in Sofia..................................................................... 25
Availability of Land in Sofia............................................................................ 26
The Commercial Real Estate Sector in Varna......................................................... 27
Geographic Information about Varna ............................................................. 27
Socio-Economic Profile of Varna ................................................................... 28
The Port of Varna .......................................................................................... 28
The Hotel Segment in Varna.......................................................................... 29
The Retail Sector in Varna............................................................................. 30
The Logistics Segment in Varna .................................................................... 31
The Office Sector in Varna ............................................................................ 32
Average Prices of Land in Varna ................................................................... 33
Availability of Land in Varna........................................................................... 33
The Commercial Real Estate Sector in Plovdiv ....................................................... 34
Geographic Information about Plovdiv ........................................................... 34
Socio-Economic Profile of Plovdiv ................................................................. 35
The Hotel Segment in Plovdiv........................................................................ 35
The Retail Sector in Plovdiv........................................................................... 36
The Logistics Segment in Plovdiv .................................................................. 37
The Office Sector in Plovdiv........................................................................... 38
Average Prices of Land in Plovdiv ................................................................. 39
Availability of Land in Plovdiv......................................................................... 39
Secondary Commercial Real Estate Market in Bulgaria.............................................. 40
The Commercial Real Estate Sector in Burgas ....................................................... 40
Geographic Information about Burgas ........................................................... 40
Socio-Economic Profile of Burgas.................................................................. 41
The Port of Burgas ........................................................................................ 41
The Hotel Segment in Burgas........................................................................ 42
The Retail Sector in Burgas ........................................................................... 42
The Logistics Segment in Burgas .................................................................. 43
The Office Sector in Burgas........................................................................... 44
Average Prices of Land in Burgas.................................................................. 44
The Commercial Real Estate Sector in Ruse .......................................................... 45
Geographic Information about Ruse .............................................................. 45
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3. Socio-Economic Profile of Ruse..................................................................... 46
The Port of Ruse ........................................................................................... 46
The Hotel Segment in Ruse........................................................................... 47
The Retail Sector in Ruse.............................................................................. 48
The Logistics Segment in Ruse ..................................................................... 49
The Office Sector in Ruse.............................................................................. 50
Average Prices of Land in Ruse..................................................................... 50
The Commercial Real Estate Sector in Veliko Tarnovo ........................................... 51
Geographic Information about Veliko Tarnovo ............................................... 51
Socio-Economic Profile of Veliko Tarnovo...................................................... 52
The Hotel Segment in Veliko Tarnovo............................................................ 52
The Retail Sector in Veliko Tarnovo............................................................... 53
The Logistics Segment in Veliko Tarnovo ...................................................... 54
The Office Sector in Veliko Tarnovo............................................................... 55
Average Prices of Land in Veliko Tarnovo ..................................................... 55
The Commercial Real Estate Sector in Vidin .......................................................... 56
Geographic Information about Vidin............................................................... 56
Socio-Economic Profile of Vidin..................................................................... 57
The Port of Vidin............................................................................................ 57
The Hotel Segment in Vidin ........................................................................... 58
The Retail Sector in Vidin .............................................................................. 58
The Logistics Segment in Vidin...................................................................... 59
The Office Sector in Vidin .............................................................................. 59
Average Prices of Land in Vidin..................................................................... 59
The Commercial Real Estate Sector in Stara Zagora .............................................. 61
Geographic Information about Stara Zagora .................................................. 61
Socio-Economic Profile of Stara Zagora ........................................................ 62
The Hotel Segment in Stara Zagora............................................................... 62
The Retail Sector in Stara Zagora.................................................................. 63
The Logistics Segment in Stara Zagora ......................................................... 64
The Office Sector in Stara Zagora ................................................................. 64
Average Prices of Land in Stara Zagora ........................................................ 65
The Commercial Real Estate Sector in Pazardjik .................................................... 66
Geographic Information about Pazardjik ........................................................ 66
Socio-Economic Profile of Pazardjik .............................................................. 67
The Hotel Segment in Pazardjik..................................................................... 67
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4. The Retail Sector in Pazardjik........................................................................ 68
The Logistics/Industrial Segment in Pazardjik ................................................ 69
The Office Sector in Pazardjik ....................................................................... 69
Average Prices of Land in Pazardjik .............................................................. 69
The Commercial Real Estate Sector in Pleven........................................................ 70
Geographic Information about Pleven............................................................ 70
Socio-Economic Profile of Pleven .................................................................. 71
The Hotel Segment in Pleven ........................................................................ 71
The Retail Sector in Pleven ........................................................................... 72
The Logistics Segment in Pleven................................................................... 73
The Office Sector in Pleven ........................................................................... 73
Average Prices of Land in Pleven .................................................................. 74
Holiday Homes Real Estate Market............................................................................ 75
Demand ................................................................................................................. 75
Who Buys Holiday Property.................................................................................... 75
Supply.................................................................................................................... 76
Prices..................................................................................................................... 77
Location Analysis ................................................................................................... 77
The Forecast.......................................................................................................... 78
Current Investments ............................................................................................... 79
Pros and Cons of the Market .................................................................................. 80
Additional Statistical Data .......................................................................................... 81
Seasonality of the Real Estate Brokerage Business in Bulgaria .............................. 81
Yields..................................................................................................................... 82
Primary Market.............................................................................................. 82
Secondary Market ......................................................................................... 82
Origin of Investments ............................................................................................. 82
Bulgarian Law ........................................................................................................ 83
Bulgarian Investment Consulting Agency (BICA)........................................................ 84
About BICA ............................................................................................................ 84
Key Capabilities ..................................................................................................... 84
Macro Market Research and Analysis Reports............................................... 84
Customized Feasibility Studies ...................................................................... 84
Investment and Financial Models................................................................... 85
Contact Details.............................................................................................. 85
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