Investments in short-term rental properties in Bulgarian resort areas, such as the Black Sea coast, Bansko and Pamporovo, represent an attractive opportunity for a stable income, especially in the context of growing tourist interest. These regions attract hundreds of thousands of visitors annually, seeking comfort and accessibility through platforms such as Airbnb and Booking.com. According to the Ministry of Tourism, Bulgaria welcomed over 12 million tourists in 2023, with Black Sea resorts and winter centers such as Bansko recording a growth of 7.5% compared to the previous year (NSI, 2023).
Market potential of resort areas
Bulgarian resort areas such as Sunny Beach, Golden Sands and Bansko offer significant potential for short-term rentals, thanks to the strong tourist flow. Sunny Beach and Golden Sands attract millions of holidaymakers annually, mainly in June-September, while Bansko is a leading winter destination for ski tourism from December to March. As we have already mentioned, in 2023 Bulgaria was visited by over 12 million tourists, with the Black Sea resorts welcoming over 7.5 million tourists, and winter resorts such as Bansko - around 1.2 million. This demand is stimulating the short-term rental market, with platforms such as Airbnb and Booking.com reporting an increase in bookings.
According to AirDNA Market Report (2023), the occupancy of short-term rental properties in Sunny Beach reaches 85% during the summer season, while in Bansko it is around 75% during the winter. The average overnight stay in the Black Sea resorts has increased by 12% compared to 2022, reflecting strong demand and the possibility of high profitability. These data highlight the attractiveness of the resort areas for investors, especially when professionally managed.
Financial aspects and profitability
Investing in rental properties in Bulgarian resort areas, such as Bansko, Sunny Beach and Golden Sands, requires careful planning of purchase and maintenance costs. According to apartestate.com (2023), the costs of buying an apartment in Bansko include notary fees, acquisition tax (2.5–3% of the tax assessment) and registration fee (0.1% of the price), which usually amounts to 3.7–4.4% of the property value. For example, for an apartment for 45,000 euros, the additional costs are about 1,800 euros. Annual maintenance costs, including complex management fees (8–12 euros/sq m), taxes and insurance, can reach 800–1,200 leva for a 50 sq m apartment, according to bulgarianresales.com (2023).
According to Property Investor Europe (2023), the average return on investment (ROI) for short-term rentals in Bulgarian winter resorts is between 6% and 10% per year under professional management, compared to 3–5% under independent management. In Bansko, where the winter season attracts 1.2 million tourists, high occupancy in December–March contributes to these levels of profitability.
Challenges and risks
Investing in short-term rental properties in Bulgarian resort areas is associated with challenges such as seasonality, regulations and competition. Seasonality is a major issue, as demand is high in summer for the Black Sea coast and winter for the mountain resorts, but drops significantly outside these periods. According to AirDNA Market Report (2023), employment in Pomorie drops to 30% outside of June–August, which limits revenue. Competition is also intense, as platforms such as Airbnb and Booking.com are saturated with listings, especially in popular destinations. Regulatory changes, such as the proposed amendments to the Tourism Act (2024), introduce criteria for national resorts, which could increase maintenance requirements and fees for owners.
Over 70% of the holiday complexes in the resort areas face problems due to mixed ownership and lack of adequate legislation, leading to disputes and additional costs. Furthermore, seasonal occupancy in the Black Sea resorts averages 60% per year, requiring strategic pricing to compensate for weak periods.
Strategies for success: marketing and management
Professional property management companies, such as Flat Manager, are the key to the success of short-term rentals in Bulgarian resort areas, using dynamic pricing and targeted marketing. Dynamic pricing adapts prices to demand – for example, in Golden Sands prices can reach 150 BGN/night in July-August, while in the off-season they are reduced to 80 BGN to attract guests. Flat Manager optimizes listings, which improves visibility. On social media, such as Instagram and Facebook, the company creates attractive content and targeted ads, which increases bookings.
According to ShortTermRentalz (2023), professional marketing in Europe increases bookings by up to 28%, and in Bulgaria the growth is around 25% (AirDNA Market Report, 2023). Professional management, like that of Flat Manager, increases occupancy by 20–30% through optimized processes. With tourist flow growing by 7.5% per year, these strategies are vital to standing out in the competitive resort market.
Environmental and sustainable practices for resort properties
Sustainable practices in resort property management are becoming increasingly important to attract eco-conscious travelers looking for accommodations with minimal environmental impact. Implementing energy-efficient solutions, such as LED lighting, thermostats, and solar panels, reduces costs and attracts environmentally conscious guests. Also, using sustainable materials for furnishings and recycling waste increases the appeal of the property.
According to European Vacation Rental Report (2022), 65% of tourists in Europe prefer properties with eco-friendly features, and the demand for sustainable accommodation has increased by 20% since 2020. In Bulgaria, according to Green Tourism Bulgaria (2023), properties with energy-efficient solutions achieve 15% higher occupancy, especially among tourists from Western Europe.
Long-term prospects and trends
Bulgaria's entry into the Eurozone in 2026 is expected to stimulate the short-term rental property market in resort areas such as Pamporovo, Bansko and the Black Sea coast. According to Forbes Bulgaria, the adoption of the euro will facilitate foreign investment and increase tourist flows due to the elimination of currency risk and more transparent prices. This will increase the attractiveness of resort properties for EU investors. In addition, the growing interest in sustainable and digital solutions, such as smart property management technologies, will improve competitiveness.
The forecasts of Fitch Ratings (2023) show that investments in Bulgarian resort properties will increase by 5–7% per year by 2027, supported by steady tourism growth and improved infrastructure. Property values in winter resorts such as Pamporovo could increase by 10% after entering the Eurozone, thanks to increased demand from foreign buyers.
Conclusion
Investments in short-term rental properties in Bulgarian resort areas offer significant benefits, including high returns (6–10% ROI, according to Property Investor Europe) and the opportunity for capital growth, especially with entry into the Eurozone in 2026. The tourist flow, growing by 7.5% per year, supports demand in regions such as Bansko and Sunny Beach. However, challenges such as seasonality and competition require professional management to maximize employment and revenue. Professional companies such as Flat Manager help with dynamic pricing and marketing to overcome these risks. Want to turn your property into a source of stable income? Contact us for a free consultation and personalized solutions. Investing in resort properties is not only a financial opportunity, but also a path to long-term success with the right approach.
