site.btaReal Estate Expert: Property Fraud Down in Bulgaria, But New Baiting Tactics Are Emerging

Property fraud in Bulgaria has decreased compared to the early years of the country’s transition, but new forms of luring clients have appeared, said Alexander Bochev, Chairman of the National Real Estate Association (NREA) in an interview with BTA on Wednesday.

Bochev pointed out that advertising tricks like listings for attractive sales or rental deals turn out to be fake. The goal is to get the client to engage and then offer them whatever is actually available on the market, regardless of their specific needs. Such ads have “skyrocketed” in recent years, especially with lower-priced rental listings of around EUR 500-600 per month, he added.

Bochev explained that due to the lack of a mandatory registry of agents and brokers, the only way to verify a real estate agency is through recommendations from friends or relatives, or by checking online reviews. “If you see a suspiciously low price for rent or purchase, it’s a good idea to look at the agency’s other listings. If their prices are consistently well below market levels, that’s a clear red flag,” he said.

He reminded that two draft bills on regulating the real estate profession have been submitted to Parliament but have yet to be reviewed by the relevant legal committee.

According to Bochev, Bulgarians’ main concerns when buying or selling real estate are similar to those when purchasing any high-value product, whether they are getting what they paid for, whether it’s of the promised quality, and whether it truly matches their needs. Buyers, in particular, often worry about the documentation involved and the accuracy of checks for any encumbrances on the property.

While fraud cases have significantly decreased compared to the 1990s, sellers still have concerns, especially about payment security. Many deals are financed through mortgage loans, and not all sellers realize that part of the payment from the bank is transferred a certain period after the deal is notarized, Bochev pointed out.

With the academic year approaching, the rental market is heating up, he said. There is also growing investment interest in smaller properties near university areas, driven by rental demand.

Bochev also noted that discussions surrounding Bulgaria’s potential entry into the eurozone, a topic that has been in the public eye for several years, have contributed to the gradual increase in housing prices during this period.

NREA will hold free public consultations on real estate topics in Sofia on September 17.