Foreign property owners are increasingly withdrawing from the Bulgarian real estate market, with both Russians and Brits leading the trend. According to the Bulgarian National Bank, the first half of the year registered an outflow of ?10.8 million from foreign property investments, with the net flow turning negative at ?1.1 million between January and June 2024.

Although official statistics do not single out which nations are selling most actively, Russians have consistently topped the list over the past five to six years. Their mass sales stem from properties acquired in the boom period some 10 to 15 years ago. The first major wave of withdrawals began around 2017?2018 when the ruble collapsed, making vacations in Bulgaria less affordable. At the same time, Russian banks increased interest rates on loans taken for seaside apartments, pushing many owners into financial difficulties.

This process only accelerated with subsequent global crises. The pandemic, followed by the war in Ukraine and the Western sanctions imposed on Russia, deepened the challenges. Russians who own property in Bulgaria now face significant obstacles to using them. Direct flights between the two countries have been suspended for the past four years, forcing travelers to arrive through Turkey, which doubles travel expenses. In addition, visa restrictions further complicate their ability to visit, leaving many with little choice but to sell.

The wave of property sales is not limited to Russians. British citizens are also increasingly giving up their Bulgarian homes. After Bulgaria's EU accession, thousands of Brits were drawn by cheap housing, low living costs, and a favorable climate. Many bought rural houses with gardens rather than coastal apartments, and some even relocated permanently. But conditions have shifted. Bulgaria is no longer considered inexpensive, and Brexit has introduced layers of uncertainty.

The UK's departure from the EU has raised questions about long-term residence rights, visas, and the possibility of future regulatory changes. Some British owners, wary of complications, have decided to sell their homes preemptively. For instance, since April this year, Bulgarians must apply for an electronic permit before traveling to the UK, replacing the previous system of free access for short stays. This raised concerns among some British homeowners in Bulgaria that reciprocal restrictions might follow, despite Bulgaria's recent decision to grant UK citizens expedited entry through electronic gates at airports.

Economic considerations also play a role in the British sell-off. Many bought at the height of the market before the 2010 financial crisis, only to watch property prices collapse in the years that followed. Those investments lost value for more than a decade. Now, with prices in Bulgaria climbing steadily in recent years, many Brits are seizing the opportunity to exit the market on more favorable terms, recouping losses or turning a profit.

The combination of geopolitical tensions, rising costs, travel restrictions, and shifting regulations has reshaped the property landscape in Bulgaria. What was once a magnet for foreign buyers is now seeing an exodus, led most visibly by Russians burdened by sanctions and Brits adjusting to post-Brexit realities.