Sofia property returns reach 5.4pc

Typical returns from properties in Sofia are now at 5.4 per cent, as the Bulgarian capital begins to rebound from stagnation

The city has seen sales rise 30 per cent this year, according to BulgarianProperties.com, while prices of residential property have increased 6 per cent, boosting the potential for capital gains in the mid- to-long-term.

"The rental market in Sofia is one of the most developed in the country, and demand is growing. Thus, residential market in the Bulgarian capital is back into the focus of local and international property investors," comments Polina Stoykova MRICS, the site's Managing Director & Head of Research.

"Returns from properties in Sofia are much higher than the deposit interest rates in local banks," adds Stoykova, noting that the average interest from bank deposits is around 1 per cent.

Monthly rents for 1-bed apartments in Sofia are typically around €300-550, while 2-beds vary between €400 and €800.