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The Future of the Rental Market in Bulgaria: Forecasts for the Next 5 Years

The rental market in Bulgaria is a goldmine for investors! In 2023, rental supply grew by 1,73%, driven by urbanization and demand. Why is this important? Rentals provide a stable return – up to 4,56% per year in Sofia – with the flexibility to lease long or short-term. Growing demand from young professionals and expats is making property investments increasingly attractive. How to take advantage? In this article, we will look at 5 key trends that will shape the rental market by 2030 – from flexible spaces to green properties – and give you an advantage as an investor. 

Trend 1: Growing demand for flexible spaces

Flexibility is the new face of the rental market in Bulgaria. Short-term rentals through platforms like Airbnb are bringing higher returns in tourist cities like Varna and Burgas, reaching 6% annual returns compared to 4.56% for long-term rentals in Sofia. The demand for hybrid spaces is growing – apartments suitable for short-term and long-term rentals are attracting a variety of tenants. For example, residential complexes offer co-working areas, which meets the needs of young professionals working remotely. In Plovdiv, a new complex has introduced flexible contracts (from 1 month to 2 years), attracting young professionals who value the freedom to move.

And with platforms like ours – flatmanager.bg, it is easier to manage such rentals, reducing vacancy and increasing income. According to Colliers (2023), 62% of millennials and Gen Z in Bulgaria prefer renting to buying, seeking flexibility and convenience. This trend makes investments in hybrid properties extremely attractive. For investors, the advice is clear: focus on properties in dynamic areas and offer flexible terms. Start with one apartment optimized for short-term and long-term rentals through flatmanager.bg, and watch your profitability grow!

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Trend 2: The impact of the economy on rents

Economic factors are shaping the future of the Bulgarian rental market, creating opportunities for investors. According to Veldiks (2024), rents in Sofia, Plovdiv and Varna will grow by 10-15% per year until 2030 due to rising construction costs and strong demand. Inflation, which reached 5.7% in 2024, is forcing landlords to raise prices to compensate for costs. However, demand remains stable as the number of available rental apartments in Sofia decreased by 12% in 2023. 

Bulgaria's expected accession to the eurozone in 2026 will further boost the market. The stability of the euro could attract foreign investors, increasing demand for quality rental properties. This will push up prices, especially in central and business areas. Despite high mortgage rates (around 4% in 2024), rentals remain attractive, as home ownership is out of reach for many.

For investors, the advice is clear: focus on quality properties with low vacancy rates in areas with high potential, such as downtown Sofia or the coastal areas of Varna. 

Trend 3: Sustainability and green properties

Sustainability is transforming the rental market in Bulgaria, attracting environmentally conscious tenants. According to fortonhomes.com (2025), green buildings increase rents by up to 10%, as tenants value energy efficiency and low bills. The demand for apartments with “green” certificates, such as LEED or BREEAM, is growing, especially among young professionals and foreigners in Sofia. These properties offer modern solutions such as insulation, solar panels and LED lighting, which reduce energy costs. 

The financial benefits are clear: according to Global Property Guide, green properties in Sofia achieve yields of nearly 51%, above the market average. An investment in sustainable elements, such as smart thermostats, can increase rent by 50-100 BGN per month, paying for itself quickly. In addition, green buildings attract long-term tenants, reducing turnover costs. For investors, the advice is to add sustainable improvements: install energy-efficient appliances or recyclable materials. 

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Trend 4: Technological Innovation in Rental Management

Technology is revolutionizing the rental market in Bulgaria, making it easier for investors and tenants. Platforms like flatmanager.bg optimize the management of long-term and short-term rentals, including listings on Airbnb and Booking.com, reducing vacancy and increasing profitability. According to address.bg (2024), technological innovations increase the attractiveness of properties by 15%, as tenants value convenience. Smart locks allow contactless access, ideal for short-term rentals. Online payments through platforms such as Revolut or PayPal speed up transactions, while applications such as WhatsApp or Viber facilitate communication between owners and tenants.

Other technologies, such as software to automate cleaning and maintenance schedules, save hours of labor. Investors can integrate these solutions to increase efficiency and attract tech-savvy tenants, especially young professionals. 

Trend 5: Demographic changes and urbanization

Urbanization and demographic changes are transforming the rental market in Bulgaria, creating new opportunities for investors. According to economic.bg (2023), the demand for rentals in Sofia, Plovdiv and Varna has increased by 173% due to accelerated urbanization. Who are the main tenants? Young professionals, attracted by business centers, are looking for modern apartments with fast internet. Foreigners, especially from the IT sector, are increasing demand in Sofia, while students are filling neighborhoods such as Studentski grad.

Migration to neighborhoods such as Vitosha and Manastirski Livadi is also shaping the market. According to fortonhomes.com (2025), these areas are attracting families and professionals seeking peace and greenery, with rents growing by 12% per year. This trend reflects the global quest for a balance between urban living and comfort. Investors can benefit by acquiring properties in neighborhoods with a growing population, such as Krastova Vada or Mladost. Platforms such as flatmanager.bg make it easier to manage these properties, offering them on Airbnb or for long-term rentals. Tip: analyze demographic data and choose neighborhoods with high population growth. 

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How to take advantage of the future of the market

The rental market in Bulgaria is about to boom! Five key trends will shape it by 2030: flexible spaces for short-term and long-term rentals, economic growth fueling prices, sustainable properties attracting eco-conscious tenants, technological innovations for efficiency, and demographic changes boosting demand in cities and suburbs. With a yield of over 4.5% in Sofia, rental investments have high potential. Want to take advantage? Visit flatmanager.bg to optimize your investments in long-term and short-term rentals, including Airbnb and Booking.com. With the right strategies, your property can be a goldmine by 2030. Act now and turn the future into profit!

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