Arco Vara sets a new standard for residential development in Bulgaria

Botanica Lozen, a new residential community near the Bulgarian capital, Sofia, is one of Estonian real estate developer Arco Vara’s largest projects outside its home market. As the first phase of construction nears completion, the development highlights key differences between the Estonian and Bulgarian real estate markets, from buyer preferences to overall market dynamics.

The first phase of the Botanica Lozen project includes 16 detached houses—11 two-story and 5 three-story homes. “Our goal is to offer homes that are not only durable but also functional and designed to meet the high expectations of modern living,” explained Arco Vara CEO Kristina Mustonen. The two-story houses are set to be completed on schedule by February 2025, with handovers to new owners beginning in April.

According to Mustonen, nine of the homes in the first phase have already been sold, reflecting the project’s strong reception. Unlike in Estonia, where buyers often commit to purchases during the planning phase, Bulgarian buyers prefer homes that are either nearly finished or move-in ready. “This gives clients the confidence to see the build quality and ensure their chosen home meets expectations,” Mustonen noted, adding that this difference in consumer behavior must be factored into both project planning and sales strategies.

Mustonen also pointed out that Bulgaria’s real estate market is currently experiencing price increases similar to those seen in Estonia a few years ago. “People feel that if they don’t buy today, prices could be higher tomorrow,” she said. This sense of urgency has made the market more active, with buyers primarily seeking projects that offer long-term value.

A convenient location and a family-friendly environment

As the first phase of Botanica Lozen nears completion, preparations for the next phase are already underway. The second phase will include only four to six additional houses, featuring designs that differ from those in the initial phase. In response to evolving market trends and buyer preferences, Arco Vara aims to offer more variety. “We are implementing innovative solutions to enhance energy efficiency and increase overall home comfort,” Mustonen emphasized, reaffirming the company’s commitment to delivering modern and sustainable housing solutions.

The entire development is located just a 15-minute drive from Sofia’s city center, yet it is surrounded by beautiful natural scenery, ensuring both privacy and a high-quality living environment. Mustonen highlighted that a school is just a short walk away, making the neighborhood particularly appealing for families with children. “This makes daily logistics much easier and enhances the community’s attractiveness for those looking for a safe and family-friendly living environment,” she added.

With its combination of nature, urban accessibility, and well-developed infrastructure, Botanica Lozen stands out as a unique residential destination for both local and international buyers. Mustonen noted that the project has particularly attracted high-income professionals who value not only the functionality of their home but also the surrounding environment. “Our goal is to create a living environment that meets the high expectations of this target group and complements their lifestyle,” she stressed.

Arco Vara plans to continue developing Botanica Lozen for at least the next five to six years while simultaneously exploring new opportunities for future projects. “Our aim is to develop real estate that benefits both residents and the broader community by delivering lasting value and quality,” Mustonen concluded.