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The agricultural land and regulated property market in Bulgaria in 2024 | IMI BG

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The agricultural land and regulated property market in Bulgaria in 2024 and trends for 2025

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The agricultural land and regulated property market in Bulgaria continues to be active in 2024, despite economic challenges and macroeconomic uncertainty. This year was marked by investor interest in both agricultural land for agricultural purposes and regulated land properties (RLP) with construction potential. The analysis shows clear differences between the two markets in terms of demand, prices and number of transactions.<h3> Agricultural land</h3> Prices and demand by region Agricultural land remains a stable asset, with prices varying significantly depending on fertility, infrastructure and region:<ul><li> Northeastern Bulgaria : The highest prices for agricultural land are traditionally in the districts of Dobrich, Varna and Shumen. The average price per decare in Dobrich reaches 2200–2600 BGN , which is about 5% lower than the previous year. The main buyers are tenants and large agricultural companies.</li><li> Southern Bulgaria : In the Plovdiv and Stara Zagora regions, prices vary between 1800 and 2100 BGN/decare . Weaker lands in the Haskovo and Kardzhali regions are offered at significantly lower prices – around 1200–1500 BGN/decare .</li><li> Western Bulgaria : Here the demand is weaker, and the prices are correspondingly lower – between 1000 and 1300 BGN/decare , depending on the proximity to cities.</li></ul> Search The main demand comes from:<ol><li> Local farmers – with the aim of expanding their farms.</li><li> Investors – for long-term capital preservation.</li><li> Foreign investors – although declining, some European funds still see potential in Bulgarian agricultural land.</li></ol> Deals In 2024, the number of agricultural land transactions fell by about 15% compared to the previous year. The main reason for this decline is the discrepancy between sellers' price expectations and buyers' willingness to pay high prices. Rent yield Rents remain stable, with the average annual rent per decare varying between 50 and 80 leva depending on the region. The highest rents are recorded in Northeastern Bulgaria, where competition between tenants is greater.<h3> Land under regulation (LPR)</h3> Prices and trends Regulated land has a significantly higher value than agricultural land, with prices depending mainly on location:<ul><li> Large cities and industrial zones : In Sofia, Varna and Plovdiv, the prices of UPI vary between 30 and 3000 euros/sq m , with the most expensive properties being located in the central parts and the periphery of industrial parks.</li><li> Small towns : Prices are significantly lower – between 15 and 50 euros/sq m . There is the greatest interest in properties near main roads and newly developed areas.</li><li> Villages and remote areas : Prices are lowest here, with some land plots selling for 5–15 euros/sq m , especially in depopulated regions.</li></ul> Search The demand for regulated land properties in 2024 is relatively high in:<ol><li> Industrial zones – for the construction of factories, warehouses and logistics bases.</li><li> Suburban areas – for residential construction, especially in the areas around Sofia, Plovdiv and Burgas.</li><li> Small settlements – for vacation homes and family properties.</li></ol> Deals The number of UPI transactions increases by about 8% compared to 2023, with the main buyers being:<ul><li> Companies – for business purposes.</li><li> Individuals – for home construction.</li></ul><ol start="3"><li> Comparison between agricultural land and regulated land</li></ol><table style="width: 100%;"><thead><tr><td> Criterion</td><td> Agricultural land</td><td> Land under regulation (LPR)</td></tr></thead><tbody><tr><td> Average price</td><td> 1000–2600 BGN/decare</td><td> 10–300 euros/sq m</td></tr><tr><td> Number of transactions</td><td> Decreases by about 15%</td><td> Increases by about 8%</td></tr><tr><td> Major buyers</td><td> Farmers, investors</td><td> Companies, individuals</td></tr><tr><td> Profitability</td><td> From rents (50–80 BGN/decare per year)</td><td> Depends on the construction project </td></tr></tbody></table>  In 2024, the agricultural land and regulated land markets continue to develop, but in different directions. Agricultural land retains its attractiveness for long-term investments, despite the reduced number of transactions and a slight decline in prices. On the other hand, regulated land is growing, driven by the interest of the construction sector and industrial companies. Investors should carefully analyze the potential and specifics of both markets in order to maximize their returns. Prices of regulated land (RLE) in Sofia Sofia remains the leading market for regulated land (RLE) in Bulgaria, with high prices and significant interest from both private investors and businesses. The capital is characterized by large differences in RLE prices depending on location:<ol><li> Central regions</li></ol><ul><li> In the center of Sofia (districts such as "Lozenets", "Izgrev", "Oborishte" and "Sredets") prices reach 250–500 euros/sq m , with the highest values observed for properties with ready-made construction projects or proximity to main boulevards.</li><li> The demand is driven primarily by companies looking for land for the construction of business and residential buildings.</li></ul><ol start="2"><li> Residential neighborhoods</li></ol><ul><li> In peripheral residential neighborhoods such as "Mladost", "Lyulin", "Ovcha Kupel" and "Druzhba" prices vary between 100 and 300 euros/sq m . The main buyers here are investors in multi-family residential buildings and small complexes.</li><li> The increased demand is a result of the growing need for new construction and the high interest in modern housing.</li></ul><ol start="3"><li> Surroundings of Sofia</li></ol><ul><li> In the surrounding areas such as Bankya, Novi Iskar and Pancharevo, where there is more free land, prices are significantly lower – 30–100 euros/sq m . These properties are preferred for the construction of single-family houses and villa settlements.</li><li> Main buyers are families and individuals looking for a peaceful environment away from the city noise.</li></ul><ol start="4"><li> Industrial zones</li></ol><ul><li> In the industrial zones around Sofia, such as the Bozhurishte area and around the Trakia highway, prices vary between 50 and 150 euros/sq m , depending on access to transport links and infrastructure.</li><li> Main clients are companies looking for land for logistics bases, warehouses or production sites.</li></ul> Comparison of UPI prices in Sofia with other regions Sofia is significantly distinguished by its higher prices compared to other regions in the country, which is due to economic activity, high demand for residential and commercial properties, and the limited supply of quality land in the central parts.<table style="width: 100%;"><thead><tr><td width="281"> Category</td><td width="300"> Sofia (in euro/sq m)</td></tr></thead><tbody><tr><td width="281"> Central regions</td><td width="300"> 1000–3000</td></tr><tr><td width="281"> Residential neighborhoods</td><td width="300"> 400–800</td></tr><tr><td width="281"> Circumstances</td><td width="300"> 50–150</td></tr><tr><td width="281"> Industrial zones</td><td width="300"> 30–150</td></tr></tbody></table>