Property Investment in Sofia
MAKE THE BEST PROPERTY INVESTMENT IN SOFIA
Bulgaria has been an attractive destination for property investors for more than 20 years with particularly good profits for property investment in Sofia. During this period there has been strong economic growth with a reliable banking system. Up until 2022, inflation was kept low as were unemployment rates.
These factors have meant that investing in real estate property in Bulgaria is profitable, regardless whether your strategy is flipping the property or long-term rental. Profits from the sale or rental can easily be transferred to your bank account in your home country and bank deposits are guaranteed by law in Bulgaria.
Whether you are making a property investment in Sofia for the first time or looking to buy your second or third home, we will guide you through your Property Investment in Sofia smoothly and effortlessly from start to finish. We will help you to explore luxury homes and developments for sale in Sofia, and discover the ideal property to suit your lifestyle or investment criteria.
We only concentrate on luxury apartments, houses and penthouses, so that we do not get cluttered with viewings. We focus on properties for sale in the upscale areas of Sofia such as Bistritsa, Boyana, Dragalevtsi, Izgrev, Iztok, Lozenets, Simeonovo and Vitosha so that you know that you be purchasing an investment in Sofia in a desirable location.
Our Sofia Real Estate consultants want to get to know your current and anticipated needs. You could be a first-time buyer, maybe you need more space or you are looking for a good investment. Whatever your requirements, we will help you find and acquire your ideal property as quickly as possible with minimum stress on your part.
With more than 15 year of experience, our agents are friendly and professional and are experts in the Sofia real estate.
Our senior property specialists meticulously choose developments and investments in Sofia that are of high quality, reasonably priced, situated in desirable areas, and created by reputable developers.
Our newly constructed properties in Sofia have excellent investment potential from capital growth or rental returns, or both, thanks to our careful planning and extensive market research.
We have agreements with top businesses in Sofia, including banks, lawyers, and accountants, who offer complete professional services to our individual or business clients seeking to buy real estate there.
Our real estate agency in Sofia is backed up by teams of professional services who are able to advise on a full range of services including Valuations, Mortgages, Legal Advice, Property Investment, Planning Applications and Insurance.
Our consultants speak the following languages: Bulgarian, English, Italian, Russian and Spanish
Sofia Property Investment Rental Returns
The Sofia property rental market has both high demand and high price levels for both the purchase and rental of a property compared to other parts of Bulgaria. It is possible to achieve a yield of around 5% to 7% annually by investing in the right property in Sofia.
If you are looking to invest in residential property in Sofia, it is better to buy apartments as they are easier to rent out with rental yields being better on smaller apartments. In all areas there is a shortage of parking spaces, particularly in Sofia Center, so purchasing a garage or parking spaces with the apartment is recommended.
Our Sofia Real Estate Investment Process
Sofia Property Broker help private people and businesses make the best investment decisions to invest in Sofia and we have built partnerships are built on experience and trust. We specialize in high quality real estate investments in Sofia and the Spa, Golf and wine vacation resorts in the Bulgarian mountains.
We perform detailed research and select high potential real estate investment in Sofia with the lowest risk and future capital gains. Our key factors in selecting properties are the location, price, rental income, future potential value, and taxes.
We do not just provide advice on your investment as we offer full property management service including renovations from quality building contractors to finding a tenant and signing the rental contract.
We help people to invest in different kinds of real estate projects in Sofia from the classic buy-to-let apartments, AirBnb properties, student accommodation, offices and vacation rentals.
Our Process has the following steps:
Analyse Your Investment Requirements
Are you making a complete cash investment, or do you want to take out a loan? If you have income in Bulgaria, we will introduce you to banks who will provide a mortgage facility.
Provide Investment Options
We select the most interesting properties with the highest rental potential and the lowest risk. We will send you a list of investment offers with detailed descriptions.
We will coordinate viewings and arrange tours so that you can see the different parts of Sofia is you are not familiar with the city.
Provide Negotiation Advice
Our goal is to obtain the best option available for you to reach a beneficial outcome.
When you have chosen the property, parties are invited to the notary office, where both buyer and seller sign the documents and the transaction is confirmed by the notary.
We will find your first tenant and actively manage your property
Fees for Real Estate Agents in Sofia
There are several extra fees involved in real estate transactions in addition to the commisspurchase or sale price of the property, such as the following:
- Home inspections
- Property mortgage fees
- Appraisal and survey fees
- Insurance payments
- Legal closing costs
- Real estate agent commissions
Our experts who will assist you in buying or selling your house are compensated with real estate commissions, which are sometimes referred to as agent and broker fees. When examining the total cost of the transaction, it is crucial to comprehend understand these fees and how they are calculated.
In contrast to other nations, commission is paid by both the buyer and the seller of real estate in Sofia. For both, a standard but flexible fee of 3% is charged.
Be careful to ask about commission fees when choosing a real estate agent in Sofia because some will try to charge foreign investors more. If the agent can secure a higher price for your transaction, whether you are buying or selling real estate in Sofia, it may be worthwhile to pay a higher commission. However, also keep in mind that a lower commission is not always the best choice as part of the agent’s fee covers the marketing budget and other business expenses for the sale.
To make sure you’re price the home accurately, it can be worthwhile to hire an independent assessor.
Since real estate agents are paid when you sell your house, you shouldn’t owe them a fee if it doesn’t sell so read the sellers contract carefully to understand what you are agreeing to, particularly if the transaction doesn’t go through.
Things to Consider When You are making a Real Estate Investment in Sofia
Factors to Consider with Real Estate Investment in Sofia
When you are considering making a Real Estate Investment in Sofia these are the factors that you must consider:
- The district in which you buy will determine the types of tenants you attract and your vacancy rate and rental fee.
- The Property Taxes payable in each district
- The quality of the local schools in the areas that you are considering
- Areas in Sofia where there are large business communities
- Amenities such as parks, restaurants, gyms, movie theaters, public transportation links, etc
- Future developments that are planned for an area.
- Number of listings and vacancies in a district.
- The area’s average rent and expenses.
These points are further expanded in this article about real estate investment in Sofia
Real estate Agents in Sofia who Speak Excellent English
Thanks to real estate websites and applications, it is now simpler than ever to find properties for sale in Sofia, but there are still many facets of the Bulgarian real estate market that can cause serious difficulties for foreign investors.
The best method to navigate Bulgaria’s minefield of legal requirements and tax legislation is with the assistance of an estate agent who is committed to your needs rather than just managing inquiries from hundreds of potential customers.
There are many real estate firms in Sofia that “specialise” in the needs of foreign investors for property and have English-speaking staff, but despite the fact that they may all seem quite similar, the quality of services they provide can vary greatly and they frequently do not put you in touch with the right agent.
Also, although they claim to speak fluent English, this is often far from the truth. Often the facts get lost in the detail and mistakes are made which can cost 1000´s Euros to fix. Sofia Property Broker has native English speakers to call upon that will ensure that all questions and answers are clear and accurate.
Real Estate Concierge Services in Sofia, Bulgaria
Although we don’t offer a flight booking flights for clients, we do want to offer a high-quality concierge real estate service in Sofia. We can help you find a place to stay, make arrangements for a pick-up at the airport, set up an orientation meeting, and handle your entire relocation to Bulgaria.
We will carefully schedule your viewing time so that you are not rushed, and we will leave time at the conclusion of your tour so that you can come back later to see the properties again.
Our partners provide the leading services in their profession and we can put you in contact with any service that you need, providing translation and interpreting if required
We are available from 8 am to 10 pm every day, and if the owners are only available during these hours, we may arrange viewings both during the week and on the weekends.
Types of Sofia Real Estate Investors Who We Support
At Sofia Property Broker, we locate homes for both real estate investors and buyers who are buying a property for themselves.
We are aware that many who purchase real estate to live in also consider it to be a lifestyle decision in addition to an investment. Therefore, neighbouring amenities like schools, shops, and public transportation as well as the travel time to work become crucial factors. The property’s proximity to the office is frequently crucial to reducing commuting times.
Long-term investors put money into the Sofia real estate market solely to profit. These investors are aware that investing in real estate can be slow-moving, that valuations can go up as well as down, and that you might hold an asset that is difficult to sell at the right price owing to market conditions if it is illiquid.
These investors frequently want to buy the property through tax-efficient businesses. If you fall into this category, then we can put you contact with our legal partners in Sofia.
The investors that we help in Sofia tend to be of three types:
Long Term Rental
There is a great demand for long term rental in Sofia from people moving from other parts of Bulgaria and from other countries. Smaller apartments give the best return on investment in the centre of Sofia, Doctor’s Gardens, Lozenets, Strelbishte, and Vitosha.
You will expect to pay minimum of 2000 Euro m2 for an off-plan property and 2500 Euro m2 for a fully finished apartment.
Buy Off-Plan and Sell When the Property Gets Permission to Use (Act 16)
Over the last few years, property prices have been increasing by at least 20%, so over a two-year period after putting down your deposit to paying the final instalment a healthy profit could have been achieved.
The high interest rates in 2023 have caused a stagnation in property prices but the situation is likely to improve in 2024 as there is such a high demand in Sofia with the rapid development of the middle-class in Bulgaria.
An Airbnb Type Apartment
There is a severe shortage of Airbnb type properties in Sofia with bookings having to be made months ahead to secure a nice place in the right location.
You will need to hire an agent on the ground in Sofia to manage the property. Sofia Property Broker is a full-service agency, that can help you buy real estate in Sofia make the renovations (if required), and do the Airbnb type management.
Airbnb Investment in Sofia
As Sofia has expanded as both a business and tourist destination over the last 10 years the demand for short-term rental properties has risen dramatically. These rentals vary from a one-night temporary stay to a couple of nights for a business meeting or weekend vacation to a month’s rental which is too long to stay in a hotel and too short for a standard rental agreement. This has led to a huge a development of Airbnb apartment investment in Sofia, but demand still outstrips supply.
The secret of a quality Airbnb investment in Sofia is the location, space and the pricing compared to hotels. For a very short stay, the emphasis is really on the cost as the importance of space is not of concern. If you are looking for accommodation for more than a week, hotels can feel cramped and the cost of eating in restaurants can really start to add-up.
For a tourist, the location of the AirBnb apartment in Sofia should be close to the centre, but for business or longer stays apartments in good areas, close to the Metro or the office are equally appealing.
For an international investor it is important to receive quality advice on where to purchase your Airbnb apartment in Sofia and have excellent support in making your investment work by managing the property. This means finding the best Airbnb investment properties can be a lucrative investment in Sofia, but it needs a top short-let management service to make it hands-off as well.
Student Accommodation Investment Sofia
The student population in Sofia keeps on growing, particularly with international students, so there is a continual demand for student accommodation to rent in Sofia, especially in areas where there is a large student population. These high occupancy levels translate into an Student Accommodation Investment Sofia that will produce a high yield and good re-sale values.
One very popular area in Sofia is known as Studentsi Grad which is the student campus area for most universities in Sofia but there are also excellent universities in the centre such as the University of Sofia and the medical university.
Sofia Property Broker is skilled in effectively marketing leisure properties including Spa, golf and ski resorts in Bulgaria. We partner with expert real estate legal professionals, stay on top of the market, keep in touch with active investors, project developers, owners and leisure operators. We know the current market prices and the factors that determine the value of leisure properties.
With a good understanding of the resort industry, we are adept at evaluating the market and our team matches experience, insight and superior analytical skills with energy, enthusiasm and up-to-the-minute online marketing savvy. We value honesty and integrity, deliver an exceptional level of service, and work hard to promote the growth and stability of the leisure industry in Bulgaria.
Property Investment in Sofia
Whether you’re thinking about purchasing your first buy-to-let property, or already have a large portfolio which you wish to expand, we’re on hand to help at every stage. We can advise you from the start with information on investment mortgages.
We pride ourselves on giving you just what you need, and can assist you and your business in the day to day letting of your properties. Our experts can help with:
Regulations for Foreigners Investing in Property in Bulgaria
Foreigners are not restricted to buy property in Bulgaria but there are certain restrictions.
Foreign citizens outside of the European Union (EU) and the European Economic Area (EEA) cannot receive ownership of the land that their property is built upon even when they receive full ownership rights of the property. The way around this is to set up a corporation. EU and EEA residents have been able to buy land in Bulgaria since 2012.
Property Taxation Costs in Bulgaria
Taxes related to property purchasing, selling, and renting are quite reasonable in Bulgaria compared to other countries. These low taxes can help investors maximise their profit from real estate investments in Sofia.
- Income and capital gains taxation is charged at 10%
- VAT is charged at 20% (land sales are exempted)
- Annual property taxation (local tax) is normally between 0.1% and 0.5%.
Which District to Invest in Sofia?
The most popular real estate investment in Sofia is apartments. Sofia has a population of over 1.5million inhabitants so some areas are better than others for investment. Some people like being in the centre of the action in Sofia Centre while others prefer the fresh air nearer the amazing Vitosha mountain.
The highest property prices in Sofia are to be found in the southern and southwestern parts of the city.
Sofia Centre has many things to do and has a pedestrianised main street that houses many shops, restaurants, and bars. There are also some excellent hotels in the centre such as the Sofia Grand and the Intercontinental and some fantastic historic sights.
The main disadvantages of Sofia Center are the lack of green space, amount of traffic and difficulty in finding parking spaces. Also some of the older apartments do not have lifts which is a bit inconvenient if you live on the fourth floor and have to carry the shopping up the stairs.
Doctor’s Garden mainly consists of period apartments and is in walking distance of Sofia Center. In this area, you will find many diplomatic residences.
There are now many shops, bars, and restaurants in the area with a newly renovated park making it a very popular place to live for foreigners in Sofia.
Property prices are lower than Doctor’s Gardens in the areas to the south of the city center towards Vitosha mountain.
Lozenets, Manastirski Livadi and Vitosha are easier to access following the development of the new Metro, have a lot of green space at South Park and Hunter’s Park and have excellent shopping including Paradise Centre.
These areas have many new developments, some in secure buildings, with excellent leisure facilities included.
If you would like to live close to your place of work, then you may like consider business districts such as Tsarigradsko Shose and Mladost where the property prices will be lower, but you will still have the benefit of Sofia Metro and be closer to Sofia Airport.
Outside the Sofia Ring Road
Some of the best districts in Sofia, including Boyana, Dragalevtsi and Simionovo, are to be found in the foothills of Vitosha mountain. Here the air is fresher and there is more space for large houses which are ideal for families.
Note that the Sofia Metro has not yet reached these areas, but they are well connected by the road system and have excellent bus connections.
Property prices are much lower in the north of the city which is largely undeveloped, and many buildings have fallen into disrepair.
However. this area offers good opportunities for investment, like other run-down parts of European cities, offering spacious apartments which have the potential to be re-developed into excellent homes.
Property Purchasing Surveys in Sofia
We always recommend a full survey before you commit yourself to any type of property investment in Sofia.
Property surveys can help avoid unexpected and expensive surprises and offer peace of mind about the potential flaws of a property. A survey can be very reassuring, especially for those taking their first steps onto the property ladder in Bulgaria.
The findings from a survey will influence your decision to buy or give you room to negotiate on price. A property might simply have too much work that needs doing, but negotiating the price down according to the costs quoted in the survey can mean the property may still be a viable option.
Mortgage providers will also do a survey, but this is not for the borrower, who will be advised to carry out their own survey. We can recommend trusted property surveyors in Sofia to help you with your investment, who will write their surveys in plain English (if required), so that it does not include and technical surveyor terms that you do not understand.
Obtaining a Mortgage in Sofia
Instructing a Lawyer in Sofia
Completion in Sofia
Be Ready to Move Quickly
New-build Developments Sofia, Bulgaria
Sofia Property Brokers offer a range of quality new development projects in Sofia which are ideal for investment or as your own home. Each new development that we have selected has been vetted by our team and are built be reputable developers and are in the best locations in Sofia.
Each of these new developments have strong investment potential for capital appreciation and rental returns.
We work closely with the development companies who will provide all the assistance needed to assist in the transaction.
Characteristics of New Build Developments in Sofia
The location of new home developments in Sofia is a key reason more people are considering purchasing a new build home in Sofia.
People are generally looking to live in the suburbs with:
- Excellent roads and public transport, particularly the Sofia Metro
- A garden, large balcony or roof terrace overlooking Vitosha mountain
- Preferably underground or covered to avoid having to clear snow or ice from the vehicle in the winter months
- Close to shopping, restaurants and fitness/leisure facilities
- Designed to be exactly as you want it as most new builds come unfinished in Sofia
- A warrantee that all issues will be corrected in the first 5 years by the developer.
- Open plan and multi- functional space.
- Facilities in the development such as security, fitness, swimming pools or restaurants
- New houses can incorporate all the latest technology such as underfloor heating and smart technology in terms of heating, lighting and music, all remotely controlled.
- Environmentally friendly. A positive of buying a new build is that it will be built to exacting standards in terms of heating and ventilation.
- Easier to buy with restrictions in place and no waiting for the seller to sale first.
- Buying a new house will generally require less immediate maintenance.
- When you buy new, you are often buying into a ready-made community with friendly neighbours.
Commercial Property Investment in Sofia
Whether you want to own one building or to become the next real estate mogul, our staff can walk you step by step through the process of reaching your financial goals with commercial real estate investing.
Sofia Property Broker offers solid professional investment advice across the commercial property sector for the sale and purchase of property. The common goal is return on investment but with different return criteria driving the investment decision whether it is intensive more opportunistic purchase or a mainstream return lead, less risk approach.
Understanding and balancing the different criteria must be right and understanding the strategic requirements of the buyer:
When handling commercial property investment in Sofia we:
- Identify the opportunity and vision of where values can go to with the right strategy.
- Help with negotiations.
- Deliver the deal.
Finding Tenants with the Maximum Profitability
If your commercial property is sitting vacant, you’re no stranger to the headache, money-sink, and frustration that can be. While you focus on your profitability goals, let our team of experienced brokers market your property, get the right tenants, and maximize your profits.
- Market research and evaluation
- Comprehensive marketing campaigns
- Tours, tenant screening, and negotiations
- Ongoing property and tenant relationship management
Market research and evaluation
Combining our many years of experience in successfully marketing commercial properties we create and execute comprehensive marketing campaigns that generate interest in your listing with tenant demand analysis and local competitor analysis.
Results-driven Marketing Campaigns
We produce comprehensive marketing campaigns that are uniquely tailored to your property’s goals and the specific tenant demographics we target.
- Email Campaigns
- Social Media
Tours, Tenant Screening, and Negotiations
Our team sets up and conducts viewings, providing full screening of all potential tenants, and keeping you informed every step of the way as we conduct and complete every aspect of the lease negotiations.
- Selection of the best-fitting tenants
- Comprehensive tenant background checks
- Scheduling and conducting viewings.
- Expert negotiations
- Ongoing Property and Tenant Relationship Management
We help you ensure your properties continue to run profitably by providing professional property management services and maintain strong relationships with your tenants to keep your cash flow operating smoothly.