Investments in real estate in Bulgaria are more profitable than real estate investments in many other European countries
Trud, a leading Bulgarian newspaper, collected information about the real estate prices in Bulgaria and Europe and concluded that investments in Bulgarian real estate are more profitable than real estate investments in other European countries.
Comparison with other European countries
The newspaper started its analysis with an examination of the property prices in Germany where a modest two-bedroom apartment (about 50 m2) in Berlin can be purchased for EUR 200,000. A similar apartment in Munich costs about EUR 300,000.
In the northern part of Greece, an apartment (50 m2) in a close proximity to the sea is valued at EUR 47,000. Such an apartment can be easily rented out to tourists. In Belgrade (Serbia), an apartment of 50 m2 costs about EUR 70,000. In Bucharest (Romania), a small two-bedroom apartment in the city centre is priced at EUR 68,000. Interestingly, the authors of the research report found that the return on investment is higher in respect to properties that are located far from the centre of Bucharest.
In Barcelona (Spain), a 50 m2 apartment costs EUR 210,000. The price of the same-size apartment in Rome, Vienna, or Paris is EUR 350,000.
In Sofia (Bulgaria), in exchange for EUR 200,000, one can get four two-bedroom apartments. Based on the calculations of the authors of the research report, the return on investment which these four apartments will provide will be up to 4,2% higher than the return on investment generated by similar apartments in other European countries. To illustrate, the four apartments in Sofia will pay back the investment in them two times faster than one apartment in Berlin or Munich valued at EUR 200,000.