Invest in Sofia: Prime Real Estate Tips for 2025
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Are you considering investing in real estate in Sofia? The capital of Bulgaria is attracting more investors from all over the world, offering attractive prices for apartments and houses compared to other European cities. At Globihome, we have analyzed the current real estate market in Sofia.
We are practitioners and share with you practical advice on the process of purchasing property in Bulgaria as well as present the best locations for investment. If you are already looking for the perfect property for sale in Sofia, contact the real estate agent we recommend, whose contact details you will find at the end of the article.
Is it worth investing in Sofia properties?
Sofia, as the capital of Bulgaria’s dynamically developing economy, offers truly unique opportunities. The real estate market in Sofia is growing steadily and despite the rise in real estate prices, it is still a very attractive city in comparison to other European capitals.
Key advantages of investing in Sofia Bulgaria properties:
- Relatively low property prices in Bulgaria compared to other Western European countries
- Bulgaria’s EU membership ensuring a safe property purchase in Sofia
- Steady economic growth reflected in urban infrastructure development
- Increasing demand for apartments for sale in Sofia both among local residents and foreign investors
- Attractive rates of return on investment in Sofia for rental properties
According to our analyses at Globihome, real estate market trends in Bulgaria indicate a continued rise in prices in the coming years, especially in the most sought-after districts of the city, which we mention later in the article.
Current state of the real estate market in Sofia Bulgaria in 2025
As shown by the offers of leading real estate agencies in Sofia, such as Galardo Real Estate, market trends in 2025 include:
- Increase in real estate prices by an average of 7-9% annually
- Increased interest in rental properties in Sofia among institutional investors
- Development of the luxury apartments in Sofia in prestigious gated communities
- Growing demand for energy-efficient and eco-friendly buildings with modern technological solutions
- Dynamic development of transport infrastructure affecting the increase in property values in peripheral districts
How much does an apartment in Sofia cost?
Apartment prices in Sofia naturally vary depending on the location, finishing standard, and the size of the apartment. Below we present an overview of average property prices in Sofia:
- Studio apartments: from 52,000 EUR (approximately 33 m²)
- One-bedroom apartments: from 84,000 EUR (approximately 57 m²)
- Two-bedroom apartments: from 160,000 EUR (approximately 108 m²)
- Three-bedroom apartments: from 366,000 EUR (170 m²)
- Luxury penthouses: from 600,000 EUR
Real estate opportunities in Sofia can mainly be found in developing districts, where prices are lower, but the potential for value growth remains high. However, it is important to remember that even cheap apartments in Sofia in less prestigious locations offer a good value for money compared to other European cities.
Best districts to live in Sofia - Where to look for properties?
Sofia offers a variety of living options tailored to different needs and budgets. The best districts to live in Sofia include:
Lozenets – luxury apartments in the prestigious district of Sofia
- Prestigious district with numerous luxury apartments in Sofia
- Proximity to city center and Borisova Gradina park
- Direct vicinity to Loven Park and the zoo
- Great infrastructure, high-class restaurants and cafes
- Popular among wealthy Bulgarians and foreign expats
- Excellent communication with the center thanks to the proximity of the Vitosha metro station
- Prices of new apartments from 1900 to 2600 EUR/m²
- Prices of apartments on the secondary market from 1600 to 2200 EUR/m²
Krastova Vada – modern investment apartments close to Sofia center
- A dynamically developing district with new gated complexes
- Convenient location near the Paradise Center shopping mall
- Proximity to the Hunting Park and Zoo
- Wide selection of modern apartments and penthouses
- Well-developed sports infrastructure (tennis clubs, fitness centers)
- Proximity to Tokuda, Vita, and Lozenets hospitals
- Prices of new apartments from 1600 to 2100 EUR/m²
- Prices of apartments on the secondary market from 1300 to 1800 EUR/m²
Center – apartments in the heart of Sofia perfect for short-term rental
- Center of Sofia apartments offer a city lifestyle
- Excellent public transportation
- Proximity to tourist attractions, restaurants, and nightlife
- Ideal for Sofia rental properties aimed at short-term rental
- High rental prices ensuring a good return on investment
- Prices of new apartments from 1800 to 2400 EUR/m²
- Prices of apartments on the secondary market from 1500 to 2000 EUR/m²
Vitosha – apartments for sale by the Vitosha Mountain
- Vitosha real estate apartments for sale are enjoying growing interest
- Situated at the foot of the Vitosha Mountain, close to recreational areas
- Excellent air quality
- A calmer atmosphere with predominance of lower buildings
- New investments with impressive views of Vitosha Mountain
- Apartments finished using modern materials and technologies, often with individual gas heating
- Prices of new apartments from 1700 to 2300 EUR/m²
- Prices of apartments on the secondary market from 1400 to 1900 EUR/m²
Studentski Grad – affordable apartments in Sofia ideal for students and investors
- Studentski Grad apartments are a popular investment option
- Lower real estate prices with stable rental demand
- Proximity to university campuses
- Ideal location for real estate investments Sofia for student rentals
- Prices of new apartments from 1300 to 1700 EUR/m²
- Prices of apartments on the secondary market from 1100 to 1500 EUR/m²
At the same time, Albania is an equally interesting investment direction. If you are considering buying property in Bulgaria or Albania, check out the most interesting properties in Saranda, Vlora investments and Golem apartments.
How to buy real estate in Bulgaria? - Step-by-step procedure and formalities
Can foreigners buy real estate in Sofia? Yes, with certain reservations. EU citizens can purchase real estate on the same terms as Bulgarians. Non-EU citizens can buy buildings, but they cannot directly acquire land (e.g., plot of land, house with land, or property with land share), unless:
- they have a registered company in Bulgaria that formally acquires the land,
- or appropriate international agreements are signed (which includes Norway, Iceland, Liechtenstein – EEA).
The process of buying real estate in Sofia:
Below, we present a clear, step-by-step process of buying an apartment in Sofia:
1. Obtaining a Bulgarian identification number (EGN or BULSTAT)
The first essential step for any foreign investor. This unique number is required for all financial and tax transactions in Bulgaria. It can be obtained at the local tax office in Sofia or through an established representative, which significantly facilitates the process for people living outside Bulgaria.
2. Preliminary searches and reservation
The best real estate offers can be found by contacting a reputable real estate agent in Sofia directly. Real estate agencies and agents often have offers that are not available online and will then professionally guide the entire transaction with you. After selecting the right property for you, it is advisable to pay a reservation fee (around €2000) to secure the chosen property on the Bulgarian market.
3. Thorough legal analysis
A key stage is to verify the legal status of the apartment in the Bulgarian property register. An experienced lawyer should check whether the seller has full ownership rights and whether the property in Sofia is free from mortgages, servitudes, or judicial seizures.
4. Signing a binding preliminary agreement
The next step is to conclude a contract (prekupen dogovor) that precisely defines the transaction terms. At this point, a deposit of about 10% of the agreed property price in Sofia is paid, and all payments must be linked to the previously obtained Bulgarian identification number.
5. Preparing documentation for finalization
The seller completes the necessary documents (deed of ownership, certificate of absence of encumbrances, cadastral plan), while the buyer arranges financing for the purchase of the apartment in the Bulgarian capital and verifies whether all their identification documents are complete and up-to-date.
6. Formal finalization at the notary
The crucial moment is signing the notarized deed at a notary's office in Sofia, in the presence of a notary, both parties to the transaction, and a translator if the buyer does not speak Bulgarian. At this stage, ownership is transferred, and the remaining part of the payment is made, always using the legally obtained EGN or BULSTAT number.
7. Registration in the Bulgarian property register
The process concludes with registering the deed of ownership in the state property register, which usually takes 3-5 working days. After this stage, the buyer becomes the rightful owner of the apartment in Sofia, and their identification data is linked to the property in official registers.
If you need support at any stage, you will find contact details for our recommended real estate agent at the end of the article. Real estate agents provide support from the moment of property selection, through negotiations, legal verification, to transaction finalization and subsequent property management. At Globihome, we only recommend reputable agents.
If you are a real estate agent, write to us and let's see if we can recommend you. We do this free of charge to provide practical and valuable knowledge to the readers of our Globihome blog.
What are the property taxes in Bulgaria?
When investing in properties in Bulgaria, local tax and legal regulations must be taken into account. Individual cities have their own tax levels, while below you will find the main fees in Sofia.
The main property taxes in Sofia are:
- Property purchase tax: 3% of the transaction value
- Notary fee: 0.1-1.5% of the transaction value
- Property register entry fee: 0.1% of the property's value
- Annual property tax: 0.1-0.45% of the property's tax value
- Waste collection fees: usually 0.1%-0.2% of the property's tax value
- Rental income tax: 10% of income (deductions possible)
- Sales tax: 10% of capital gains
It is worth noting that buying property in Bulgaria involves relatively low costs compared to other European countries. This significantly increases the attractiveness of this market for foreign investors.
In terms of rental income tax, there are no additional local city charges - national regulations apply uniformly throughout Bulgaria. However, a property owner in Sofia must remember the mentioned annual property tax and the fee for municipal waste collection.
Rental Properties Sofia - Profit Calculation
Very often, clients deciding to purchase real estate for rent in Sofia choose to invest in a studio apartment or buy a two-room apartment. This is an attractive investment option due to stable demand and a favorable purchase-to-potential rental income ratio.
Example calculation for a 50 m² apartment in the Lozenets district:
- Purchase cost: approximately 105,000 EUR
- Potential long-term rental income: 600-700 EUR per month
- Annual income: 7,200 - 8,400 EUR
- Operating costs (taxes, maintenance, management): approximately 2,000 - 2,500 EUR annually
- Annual profit: 4,700 - 6,400 EUR
For short-term rentals (tourist), potential revenues may be higher (12,000-15,000 EUR annually).
In the case of luxury apartments in prestigious locations, rental rates can be significantly higher. For instance, renting a luxury two-room apartment in a gated complex in the Lozenets district may cost 1,100 - 1,250 EUR per month, and a three-room apartment in the center near the National Assembly Square even 1,500 EUR per month.
FAQ - Frequently asked questions about purchasing property in Sofia
Is it worth buying property in Sofia?
Absolutely. Buying property in Sofia is currently one of the most profitable investments in Central and Eastern Europe. Apartment prices in Sofia are still attractive compared to other capitals, and the real estate market is growing dynamically. Buying apartments for rent is particularly profitable – both short-term and long-term. According to Globihome's analysis, investments in Sofia real estate 2025 may yield an annual return rate of 5-7%.
Can a foreigner buy an apartment in Sofia?
Yes, foreigners – particularly EU citizens – can purchase apartments in Sofia on the same terms as Bulgarian citizens. Citizens from outside the EU can also acquire properties, although there are some restrictions concerning land. The process of buying property by a foreigner in Bulgaria is simple and secure, especially with the help of a local agent and lawyer.
What are the property taxes in Bulgaria?
The property purchase tax in Sofia is usually 3% of the transaction value. Additionally, there is an annual property tax (0.1–0.45%) and a 10% tax on income from rent or sale. The buyer also bears the notary fee and the cost of registration. All these taxes are applicable to foreign buyers as well.
What is the process for purchasing property in Sofia?
The process of buying property in Sofia involves selecting an apartment, signing a preliminary agreement with a deposit, finalizing at the notary, and registering the ownership deed. Obtaining a BULSTAT or EGN number is mandatory. The process is quick, and transactions are well-protected legally. Investing in Sofia is also accessible for international buyers.
Is buying an apartment in Sofia a good investment?
Purchasing property in Sofia is currently one of the most advantageous investments in Europe. Apartment prices are steadily rising, and the market attracts investors with low taxes and high rental demand. Investing in Sofia combines a low entry threshold with high return potential, making it an attractive option for foreign buyers.
Summary: Prospects for Investors
Invest in property in Sofia is a motto to consider in the context of diversifying your investment portfolio. The Sofia real estate market offers a unique combination of relatively low entry prices, stable value growth, and attractive rental returns.
Key takeaways for you:
- Sofia offers very good property price levels compared to other European capitals
- The property purchase procedure in Bulgaria is relatively simple, although it requires careful legal verification
- The best districts to live in Sofia are Lozenets, Vitosha, Krastova Vada, and Center, also offering the highest potential for value growth
- Rent properties in Sofia provide stable passive income with relatively low risk
Before making a decision to purchase property in Sofia, it is advisable to consult with local experts, visit the city personally, and thoroughly analyze specific offers in terms of their investment potential. If you have any questions and are looking for property in Sofia, do not hesitate to call or write us today.