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The real estate market is changing direction: Where is Bulgaria

Our country is emerging as an alternative destination with a lower entry price and growth potential

Снимка: М. Богданова ©

After several years of uncertainty, delayed transactions and cautious behavior, international investors are once again increasing their presence in the real estate market, according to an analysis by the consulting company Colliers on investment attitudes in 2026. There is a gradual recovery of activity, a rearrangement of priorities and increased interest in markets with higher potential for profitability - including in Central and Eastern Europe.

Globally, investors are increasingly abandoning passive strategies and seeking direct control over their assets. The share of so-called “core“ investments remains significant, but at the same time the appetite for more flexible and active management models is growing. Industrial and logistics properties, rental housing complexes and retail spaces continue to attract capital, and the data center sector is establishing itself as one of the most dynamic segments of the market.

In Europe, the recovery is felt most strongly in established markets such as the UK, Germany and France, where liquidity and transparency remain key factors. In parallel, however, investors are increasingly broadening their geographical focus, heading towards Southern Europe and the countries of Central and Eastern Europe, where the risk-return ratio is more attractive.

It is in this context that Bulgaria is starting to appear on the map of international investment interest. Although the country is not among the leading markets in terms of transaction volume, it is benefiting from the broader regional trend of seeking alternative destinations with lower entry costs and growth potential.

Industrial and logistics properties, especially around major transport corridors and large cities, are emerging as one of the most promising segments. Additional interest is also being observed in residential projects with long-term profitability, as well as in modern office spaces that meet the requirements for energy efficiency and sustainability.

The report also highlights the growing importance of technological infrastructure - data centers and related assets, which are becoming a strategic resource for economies. For countries like Bulgaria, this opens up an opportunity to position itself as a regional location for portfolio diversification, especially against the backdrop of the search for more flexible and price-competitive markets.

For local investors, the signals are also important. The restoration of global interest and the gradual movement of capital create conditions for Bulgarian players to take stronger positions before the market becomes more competitive. Analysts point out that it is in such transitional periods that the best opportunities for strategic deals and long-term positioning open up.

Despite the more optimistic forecasts, experts remain cautious. Challenges such as access to financing, construction costs and the regulatory environment will continue to influence investment decisions. At the same time, however, the direction is clear – the property market is coming out of the waiting phase and entering a new stage in which selectivity and asset quality will be decisive.

For Bulgaria, this means an opportunity, but also a test. Whether the country will be able to capitalize on the resurgent interest and attract sustainable investment will depend not only on global trends, but also on the market's ability to offer transparency, stability, and a long-term vision for development.

Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found at imot.bg