Land for Sale in Bulgaria

A serious alternative for those interested in investing in Bulgaria for maximum capital appreciation, and an alternative equally of potential interest to those contemplating a permanent move to this Eastern European country of contrasts is finding land for sale in Bulgaria and either banking it for the medium term, constructing a custom home on it or building a series of investment properties on it.

This is a guide to buying land for sale in Bulgaria as well as getting permission to build.  It covers the likely costs involved in the construction of a custom home as well as the legalities associated with buying land for development.

First things first it’s important to consider that land in Bulgaria is assigned a specific classification and that depending on the classification a plot of land has it can or cannot be built upon.  Land that is ‘regulated’ has been given basic authorisation by the state for development whereas land that is either ‘unregulated’ or which has the classification of ‘agricultural land’ does not have permission for development. 

Certain types of agricultural land can have their classification status changed and some land prospectors in Bulgaria seek out these plots, buy them at a reduced rate from a vendor who knows they cannot be built upon and are therefore worth less than a building plot, and then the speculative purchaser will attempt to get classification altered so that planning permission can be granted.  If planning permission is eventually given the value of a plot of land can go up significantly - at which point such a land prospector will usually resell to release their capital gains before moving on to the next plot!

Since 2004 the price of land for sale in Bulgaria in the most popular locations has risen by over 300%, so you can see what a potentially valuable investment straight land purchase can be.  The most interesting areas for those seeking the strongest gains are within a 15 – 20 mile radius of the main cities and resorts in Bulgaria and one area that has seen strong speculative interest in land for sale in Bulgaria recently is Balchik where there are proposals afoot for golfing developments.

Those hoping to construct a custom home on land for sale will get far more for their money the more rurally located they are willing to be.

In terms of the legal process to buy land in Bulgaria a company has to be formed by the prospective purchasers and no one should consider proceeding until they have secured the services of decent local legal advice in the form of a conveyancing solicitor or lawyer specialising in real estate.

Potential issues that need to be looked into when buying land in Bulgaria include the fact that larger parcels of land are often owned by multiple members of a family and each beneficial owner has to give their legal authorisation to sell the land, furthermore the classification and boundaries have to be checked out and it must be made clear that there are no outstanding claims or debts on land being offered for sale.

Once an individual has bought their plot of land and decided to build upon it a building permit (or PUP) has to be secured – this specifies how dense the construction can be, the maximum height of the property allowed and it should also include authorisation from suppliers of essential utilities such as water and electric that they will supply services.  Usually by this point a buyer will have an architect on board who will deal with the application for the building permit based on his/her designs for the home or property development to be constructed.

The next stage is finding a builder who can carry out the work within budget, on time and to a decent specification (not asking for much then!!) – there are far more constructors developing poor standards of building in Bulgaria than there are builders constructing decent homes and so get at least three quotes, view previous examples of an individual’s work and expect to pay around GBP250 per square meter for the very basic construction of a house.  This amount of money will not cover fixtures and fittings or flooring and heating but it will cover getting the basic frame of the house in place.

Finally, if you want to buy land and build your own property in Bulgaria consider speaking to other expatriates who have gone before you and learn from their mistakes as well as their triumphs – most people who have gone through the stress of having their own home built will be only too happy to talk with you frankly about the build process.