Residential properties in Sofia currently offer average rental returns of 5.4%, Bulgarian Properties has said.
This compares with average interest of about 1% earned from deposits in local banks, according to central bank data, the Sofia-based real estate agency said on Tuesday.
The number of property deals in Sofia has increased by about 30% this year and residential property prices have grown by about 6%.
The increase reflects an “upturn trend after several years of stagnation” and provides “opportunities for capital gains in the medium to long term,” the company said in a statement.
Monthly rents for one-bedroom apartments in Sofia are in the range of 300 to 550 euro, according to the real estate agency. For two-bedroom apartments, monthly rents vary between 400 and 800 euro. Rents for large apartments start from 900 euro.