Bulgarian Farmland Prices Go Crazy - Why You Shouldn't Buy Now

The agricultural land market in Bulgaria is on the verge of overheating, according to the latest data from the National Statistical Institute. Over the past decade, field prices in certain areas have skyrocketed more than sixfold, reaching levels where natural resources must be extracted to recoup the investment. Real estate experts warn that a bubble is inflating, and it will soon burst, drawing parallels to 2013 when land prices plummeted by nearly 50% within a single month.

Transactions have stalled recently due to high prices and problems in the agricultural sector, as indicated by data from the Chamber of Notaries. Sellers are demanding unrealistic values for their land, while farmers are reluctant to buy, squeezed by low prices for agricultural produce and the skyrocketing cost of fertilizers and fuels that make production more expensive.

The market is dominated by speculators seeking quick profits, artificially driving up prices by buying and reselling plots without considering their real characteristics and potential profitability. This practice fuels the bubble and risks a sharp price drop. However, when discussing land prices, one should not overlook that it is the primary productive resource of Bulgarian agriculture, which is currently experiencing its most challenging period in years.

Bulgarian agriculture has been hit by a triple storm. The low prices of Ukrainian grain have collapsed the country's production and impacted the largest farms. The government aid granted is a mere drop in the ocean compared to the constantly rising prices of fertilizers and fuels, according to farmers. Illegal farm produce imports and labor shortages are further crippling the industry.

Without profits from agriculture, there are logically no...