Home > Bulgaria > Why invest in Sofia?

Why invest in Sofia?

'If you’re looking to invest in Eastern Europe, Sofia is outperforming established markets like Prague and Bucharest'

Sofia’s increased employment rate, increasing wages, low inflation and its ability to attract foreign investment continues to drive property price growth. Property prices increased by 14% between January and March in 2007.

Despite consistent property price growth over the past 5 years, Sofia remains the second cheapest capital city for residential property in Europe; average apartment prices in Sofia are 53.2% cheaper than Bucharest.

'3rd highest rental yield in Europe'

Sofia also boasts the 3rd highest annual rental yield in Europe at 10.56%, with regions in the south of the city commanding the highest rents. The most active rental markets tend to be for foreign workers and longer term tourists. The influx of large multinational corporations and state owned organisations moving into Sofia look set to ensure that demand for residential property will remain strong throughout 2007 and beyond.

The Global Property Guide scores Bulgaria’s property rental laws as ‘pro-landlord’, ranking it alongside more established rental markets such as the UK and Monaco. The capital Sofia is particularly favourable for buy-to-let investors as it offers all year-round rentals from the corporate market with tenants in abundance, offering attractive rental yields.

Sofia Investment facts;

• • Bulgaria’s capital Sofia has second lowest property prices of all European capital cities.

• • 3rd highest rental yield in Europe.

• • Property prices increased by 14% between January and March 2007.

• • High capital appreciation.

• • Residential property in Sofia yields a much lower average price per sq m than its European neighbours.

• • Over 95% of residents in Sofia are in employment.

• • Sofia is a youthful city; the population has an average age of 38.