Rental yields are moderately good in Sofia, Bulgaria
August 29, 2017
|Last Updated: Aug. 29, 2017|
|SOFIA CENTRE - Apartments||COST (€)||YIELD (p.a.)||PRICE/SQ.M. (€)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|80 sq. m.||116,320||510||5.26%||1,454||6.37|
|120 sq. m.||156,000||811||6.24%||1,300||6.76|
|SOFIA SUBURBS - Apartments|
|80 sq. m.||90,320||392||5.21%||1,129||4.90|
|120 sq. m.||118,800||593||5.99%||990||4.94|
|SKI RESORTS- Apartments|
|90 sq. m.||43,020||n.a.||n.a.||478||n.a.|
|BLACK SEA - Apartments|
|90 sq. m.||73,080||n.a.||n.a.||812||n.a.|
|120 sq. m.||96,120||n.a.||n.a.||801||n.a.|
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Sofia Centre: Doctors´ Garden, Ivan Vazov, Iztok, Lozenets, Medical Academy, Oborishte
Sofia Suburbs: Bakston, Belite Brezi, Borovo, Boyana, Dianabad, Dragalevtsi, Geo Milev, Gotse Delchev, Hladilnika, Krasno Selo, Manastirski Livadi, Ovcha Kupel, Poduene, Slatina, Strelbishte, Studentski Grad, Vitosha
Ski Resorts: Bansko, Borovets
Black Sea Coast: Bourgas, Varna
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule
Sofia has moderately good gross rental yields - i.e., the rental return on a property if fully rented out, before all expenses. Yields in the centre are around 6.0 %. Yields a little further out are similar.
Doctor’s Garden, Ivan Vazov, Iztok and Lozenets are among the most sought after addresses in the centre. Embassies, museums and universities are located here. These areas also have many parks and green spaces, making them popular with expats.
In the southern part of Sofia in Vitosha Mountain (or in the vicinity) are prestigious suburban neighborhoods like Boyana and Dragalevtsi. Though new developments being built here are increasing the stock of rental apartments, we find better yields here on the very smallest apartments, with yields stretching up to 6.4%. Two years ago we found that the very biggest apartments commanded exceptional yields at 8.4%. We weren´t able to gather enough data the last two years, but that may be worth investigating.
We aren´t able to provide yields in Bulgaria’s beach and ski areas, because rents in these areas are highly seasonal.
Transaction costs in Bulgaria are moderate, and more or less evenly split between buyer and seller. See our Round trip transaction costs on residertial property purchases in Bulgaria and Transaction costs in Bulgaria on residential property compared to the rest of Europe