The Shrinking Apartment: How 102 sq.m. Becomes 75 sq.m. – A Legal Guide for Property Buyers in Bulgaria

август 25, 2025 / Posted in  English blog, Real estate, Блог постове, Сделки с недвижими имоти

Introduction: The Square Meter Paradox

The acquisition of real property represents one of the most significant financial commitments an individual will make. In the Bulgarian real estate market, a common and deeply perplexing scenario frequently confronts prospective buyers: a property is advertised, negotiated, and ultimately contracted for based on an appealing area, for instance, 102 square meters. Yet, upon taking possession, the buyer discovers that the actual, functional living space—the area available for furniture, movement, and daily life—feels substantially smaller, often closer to 75 square meters. This jarring discrepancy gives rise to feelings of deception and confusion, leaving many to question the legality and ethics of the transaction.

This phenomenon is rarely the result of simple measurement error or overt contractual fraud. Rather, it is a systemic issue born from a significant chasm between the technical, legally mandated methodologies for calculating property areas and the intuitive understanding of „space“ held by the average consumer. While developers and sellers often operate within the strict confines of Bulgarian law, the commercial application of these legal norms can create a profoundly misleading impression of the product being sold. This report will dissect this „square meter paradox“ from a legal and practical standpoint. First, it will deconstruct the complex legal definitions that govern property area calculations in Bulgaria. Second, it will provide a tangible, step-by-step calculation to illustrate precisely how 102 sq.m. can be legally transformed into 75 sq.m. of usable space. Third, it will analyze this common commercial practice through the lens of the Consumer Protection Act, examining whether technical legality can coexist with a finding of a misleading commercial practice. Finally, it will equip the prospective buyer with a robust framework of legal and practical due diligence to navigate the market and protect their interests effectively.

Section 1: Deconstructing the „Area“ – The Legal Labyrinth of Bulgarian Property Law

To comprehend the discrepancy in property measurements, one must first understand the legal and regulatory framework that governs them. The foundation of this framework is the Закон за устройство на територията (ЗУТ) / Spatial Development Act ¹, which provides the overarching principles for territorial planning and construction. However, the specific, granular rules for area calculation are detailed in a crucial piece of secondary legislation:

Наредба № 7 от 22 декември 2003 г. за правила и нормативи за устройство на отделните видове територии и устройствени зони / Ordinance No. 7 of December 22, 2003, on Rules and Norms for the Development of Different Types of Territories and Development Zones.² This ordinance is the definitive source for how all property areas are measured in Bulgaria, and its terminology is paramount. The confusion arises because the market uses several distinct terms for „area,“ each with a different basis and purpose.

The Four Faces of „Area“: A Definitive Breakdown

Understanding the transaction requires a precise differentiation between four key concepts: „Built-up Area,“ „Clear Area,“ „Common Parts,“ and the commercially ubiquitous „Total Area.“

„Застроена площ“ (ЗП) / Built-up Area

The Built-up Area is the primary legal and technical measurement of an individual property unit (e.g., an apartment). It is this figure that is officially recorded in the cadastral map and the title deed (нотариален акт). According to Ordinance No. 7, the Built-up Area is defined as „the area enclosed by the external structural outlines of the external enclosing walls of the unit and the axial lines of the partition walls to adjacent units or to the common areas of the building“.²

Crucially, this definition means the Built-up Area includes elements that are not usable living space:

• External Walls: The full thickness of the exterior walls of the apartment is included in the calculation, provided they contain openings such as windows or doors.²
• Internal Walls: Half the thickness of the walls separating the apartment from neighboring units or from common areas (like corridors) is included.²
• Balconies, Loggias, and Terraces: The entire area of any balconies, loggias, or terraces, measured by their external structural outlines, is added to the Built-up Area.²

It is also important to note a significant historical change in this calculation. For properties built before 1991, the Built-up Area included only a fraction (typically one-quarter) of the area of balconies and terraces. A subsequent ordinance mandated the inclusion of their full area, a change which can lead to discrepancies when comparing older properties with new constructions.⁷

The legal definition of Built-up Area was not conceived for consumer clarity in a sales context. Its primary purpose is technical, serving architects and urban planners in calculating building parameters like density (плътност на застрояване) and intensity (интензивност на застрояване – Кинт), and determining the total floor area ratio (Разгъната застроена площ – РЗП) of a building.¹⁰ The commercial real estate market has, however, co-opted this technical metric as a foundational element for pricing, creating an information asymmetry where the seller utilizes a legally defensible number that the buyer is likely to misinterpret as the property’s actual size.

„Светла площ“ / Clear Area (Usable/Net Area)

The „Clear Area“ is what most buyers intuitively understand as the size of an apartment. It is the „wall-to-wall“ or „carpetable“ space—the actual area that can be physically occupied and used for living.¹¹ This measurement excludes the thickness of all interior and exterior walls, structural columns, and service shafts.²

The most critical point for any buyer to understand is that „Светла площ“ is a purely commercial and informal term. It holds no official legal status in the context of a property sale and will not be mentioned in the title deed or other official documents.² Its sole function is to provide a practical, albeit unofficial, orientation for the buyer regarding the property’s usable dimensions.

„Общи части“ / Common Parts and „Идеални части“ / Ideal Parts

Every owner of an apartment in a condominium building also co-owns the „Common Parts“ of that building. These are legally defined by the Property Act and include all elements that serve the collective needs of the owners: the land, foundations, external walls, roof, staircases, landings, elevators, lobbies, and all shared installations.¹¹

A buyer does not acquire a specific physical section of these common areas. Instead, they acquire „Ideal Parts“ (идеални части), which represent a percentage share of the ownership of all common parts combined.¹² This percentage is typically calculated pro-rata, based on the ratio of the individual unit’s Built-up Area (ЗП) to the sum of the Built-up Areas of all individual units in the building. This percentage is legally significant as it determines the owner’s voting rights in the general assembly of owners and their contribution to the building’s maintenance and repair fund.

„Обща площ“ / Total Area

The „Total Area“ is the figure most frequently encountered in real estate listings, marketing brochures, and, crucially, in preliminary and final sales contracts. This is a purely commercial metric, not a legally defined one, and it is the primary driver of the „shrinking apartment“ phenomenon.¹³ The Total Area is a calculated figure, derived by summing two components:

Обща площ=Застроена площ (ЗП)+Площ на идеалните части от общите части

Total Area =Built-up Area (ЗП) + „Common Parts“

In essence, the seller calculates the buyer’s percentage share of the common parts and presents it as an equivalent area in square meters, which is then added to the apartment’s own Built-up Area.7

This practice is a relatively modern commercial development in the Bulgarian real estate market. It emerged as a mechanism for developers to directly monetize the construction costs associated with common areas, which in modern buildings can be extensive and include large lobbies, reception areas, fitness rooms, and underground corridors. By bundling a share of these common areas into the saleable area of each apartment, the pricing basis shifted from the apartment itself (the ЗП) to a composite figure that includes a portion of the entire building. The direct consequence is that the most common valuation metric—price per square meter—has become inherently unreliable for comparing properties without a detailed breakdown of its components.

To clarify these distinctions, the following table provides a comparative overview:

Terminology	Legal/Commercial Basis	What It Includes	What It Excludes	Where It’s Used
Светла площ (Clear Area)	Commercial/Informal	Actual usable living space („wall-to-wall“)	Walls, columns, common parts, balconies	For personal orientation, furniture planning
Застроена площ (Built-up Area)	Legal (Ordinance No. 7)	Clear Area + All walls + Full area of balconies/loggias	Common Parts	Cadastral map, Title Deed
Обща площ (Total Area)	Commercial	Built-up Area + Pro-rata share of Common Parts	–	Real estate listings, Preliminary & Final Contracts
Общи части (Common Parts)	Legal (Property Act)	Lobbies, stairs, elevators, roof, foundations, etc.	Individual property units	Calculation of Total Area & maintenance fees

Section 2: The Calculation in Practice: From 102 sq.m. to 75 sq.m.

To make these abstract legal concepts tangible, a practical, step-by-step calculation based on the user’s scenario is illustrative. The case study begins with a hypothetical apartment advertised and offered for sale with a Total Area (Обща площ) of 102 sq.m.

Step 1: Accounting for the Common Parts

The first and most significant reduction from the advertised area comes from the inclusion of the ideal parts of the common areas. The percentage allocated to common parts is not standardized and can vary widely, typically ranging from 10% in older or more basic buildings to over 20% in new, high-end developments with extensive amenities. For this example, a realistic figure of 17% will be used.

The area corresponding to the ideal parts is calculated as a percentage of the Total Area:

Площ на идеални части(Common Parts)=102sq.m.×17%=17.34sq.m.

This 17.34 sq.m. represents the buyer’s share of the building’s common infrastructure. To find the apartment’s own Built-up Area (ЗП)—the figure that will appear on the title deed—this amount is subtracted from the total:

Застроена площ (ЗП)Built-up Area=102sq.m.−17.34sq.m.=84.66sq.m.

At this stage, the buyer has already accounted for over 17 square meters that are not part of the apartment itself but consist of hallways, stairwells, lobbies, and other shared spaces.7 The property being purchased has effectively shrunk to a Built-up Area of approximately 84.7 sq.m.

Step 2: Accounting for the Walls

The second reduction comes from the fact that the 84.7 sq.m. of Built-up Area is not yet the usable living space. As defined by Ordinance No. 7, this area is measured from the external outlines and axial lines of the walls.² Therefore, the physical space occupied by the structure of the walls themselves must be subtracted.

The area of walls, columns, and other structural elements can constitute a significant portion of the Built-up Area, often between 10% and 15%, depending on the construction type and layout. Assuming a conservative 12% for this example, the area occupied by the walls is calculated:

Площ на стени и колони(Area of walls, columns,)=84.66sq.m.×12%=10.16sq.m.

By subtracting this non-usable structural area from the Built-up Area, we finally arrive at the Clear Area (Светла площ)—the actual, livable space:

Clear Area (Светла площ)=84.66sq.m.−10.16sq.m.=74.5sq.m.

This calculation demonstrates with mathematical precision how a property commercially presented as 102 sq.m. provides the buyer with only about 75 sq.m. of actual usable space.

The Price-per-Square-Meter Illusion

The direct financial consequence of this calculation methodology is the severe distortion of the price-per-square-meter metric, which is the primary tool for valuation and comparison in the minds of most buyers. If the 102 sq.m. apartment is priced at €153,000, the advertised price per square meter is:

102sq.m.€153,000​=€1,500/sq.m.

However, the buyer is only receiving 74.5 sq.m. of usable space. The effective price per usable square meter is therefore substantially higher:

74.5sq.m.€153,000​=€2,053.69/sq.m.

This represents an increase of over 36% from the advertised rate. This reframes the issue from one of simply „lost space“ to one of „hidden cost.“ A buyer comparing this property to another—perhaps an older building advertised at a seemingly more expensive €1,600/sq.m. but with less „wasted“ space in common parts and walls—might make a financially irrational decision based on the misleading headline metric. This subtle but powerful illusion is one of the most significant traps for the uninformed buyer in the current market.

Section 3: Legal… But Misleading? The Consumer Protection Angle

The practice of pricing properties based on „Total Area“ is, in a narrow sense, legally compliant. The calculations are based on official methodologies prescribed by Ordinance No. 7. However, compliance with technical regulations does not automatically absolve a commercial practice of being misleading or unfair to consumers. The primary legal instrument for this analysis is the Закон за защита на потребителите (ЗЗП) / Consumer Protection Act.

A Deep Dive into Article 68d – „Misleading Commercial Practices“

The core of the consumer protection argument lies in Art. 68d of the ЗЗП. This article defines when a commercial practice is considered misleading and is therefore prohibited. The key provision, Art. 68d(1), states:

„A commercial practice is misleading when it contains false information and is therefore untruthful or when in any way, including through its overall presentation, it deceives or is likely to deceive the average consumer, even if the information presented is factually accurate regarding one of the circumstances listed in para. 2, and causes or is likely to cause him to take a transactional decision that he would not have taken otherwise.“.16

This provision is critical because it moves beyond the simple test of factual accuracy. The argument against the use of „Total Area“ in property sales is not that the number itself is false, but that its overall presentation is inherently deceptive to the average consumer.

1. „Overall Presentation“: When a developer or agent prominently advertises a „102 sq.m. apartment“ without an equally prominent and clear explanation that approximately 25-30% of this area is non-usable (common parts and walls), the presentation is designed to create an impression of size that does not match reality. The seller knows, or reasonably should know, that the average consumer will interpret this figure as livable space. This failure to disclose or clarify a material fact—the vast difference between the commercial and the usable area—can be construed as a misleading practice by omission or by deceptive presentation.
2. The „Transactional Decision“ Test: The law requires that the misleading practice influences the consumer’s decision. This test is clearly met. A buyer is highly likely to choose a property advertised as 102 sq.m. over a competing property advertised as 98 sq.m., assuming similar price and location. If the 98 sq.m. property has a more efficient layout with fewer common parts and thinner walls, it might actually offer more usable space. The misleading headline figure directly influenced the buyer’s transactional decision, causing them to enter a contract they might have otherwise avoided had they been fully informed.

The Role of the Commission for Consumer Protection (КЗП)

The Комисия за защита на потребителите (КЗП) / Commission for Consumer Protection is the state administrative body tasked with enforcing the ЗЗП.¹⁸ The КЗП has the authority to investigate complaints, issue binding orders to cease prohibited practices, and impose financial sanctions on traders. There is established precedent of the КЗП and, subsequently, the administrative courts, taking action against real estate agencies and other traders for non-transparent practices, even when no explicit law was broken. For instance, courts have upheld КЗП decisions to prohibit the use of unfair or unclear clauses in contracts, such as those imposing disproportionate penalties on consumers or those related to misleading advertising about the availability of properties.²⁰ This demonstrates a regulatory and judicial willingness to look beyond mere technical compliance and assess the real-world effect of a commercial practice on the average consumer.

This legal context creates a fundamental tension between the traditional civil law principle of caveat emptor („let the buyer beware“), which places the onus of discovery and due diligence squarely on the buyer, and the modern framework of consumer protection law. A developer’s defense against a claim of misleading practice would likely be that the method of calculation is a matter of public law (Ordinance No. 7) and the buyer is presumed to know the law. However, the consumer protection doctrine, as embodied in the ЗЗП, recognizes the inherent imbalance of information and expertise between a professional seller (the developer) and a consumer. It imposes a positive duty of transparency on the professional, requiring them to present information not just in a technically correct manner, but in a way that is clear, understandable, and not liable to deceive. The widespread commercial practice of advertising „Total Area“ without a clear and immediate explanation of its components is a direct exploitation of this information gap.

Section 4: A Buyer’s Shield: Due Diligence and Contractual Safeguards

While legal remedies may exist after a transaction is complete, they are often costly, time-consuming, and uncertain. Therefore, the most potent protection for a property buyer is proactive prevention through rigorous due diligence and the negotiation of robust contractual safeguards. The period before the signing of the preliminary contract is the moment of maximum leverage for the buyer.²²

The Preliminary Contract (Предварителен договор) as Your Primary Weapon

The preliminary contract is a legally binding agreement that outlines all the essential terms of the future final sale. It is here that the buyer can and must insist on clarity regarding the property’s area. Relying on the developer’s standard-form contract is a significant risk.²³ Instead, with the assistance of legal counsel, the buyer should demand the inclusion of a specific, detailed clause on area measurement.

This essential clause should provide a complete breakdown of the property’s area, explicitly stating:

1. The Total Area (Обща площ), which will serve as the basis for the total price.
2. The Built-up Area (Застроена площ) of the individual unit, as it will be recorded in the title deed.
3. The exact percentage and corresponding square meters of the Ideal Parts (Идеални части) of the common parts that are included in the Total Area.
4. An indicative Clear Area (Светла площ) of the property, calculated based on the approved architectural plans.

Including this clause accomplishes two critical goals: it forces the seller to be transparent, and it creates a contractual basis for a claim (e.g., for a price reduction) if the final, as-built property deviates significantly from the agreed-upon specifications. A seller’s or developer’s refusal to include such a detailed breakdown in the preliminary contract should be considered a major red flag.

A Buyer’s Due Diligence Checklist

Beyond contractual negotiations, a comprehensive due diligence process is indispensable. This checklist outlines the key steps every prospective buyer should take:

1. Demand the Architectural Plans: Before signing any document, request the final, approved architectural plans for the specific apartment. These drawings contain the precise measurements from which all other area figures are derived and can be reviewed by an independent expert if necessary.
2. Verify the Developer and Builder: Conduct thorough research on the reputation and track record of the developer and construction company. Investigate their previously completed projects, speak to residents of those buildings if possible, and search for any history of litigation or consumer complaints.
3. Ask Pointed Questions: Do not rely on vague assurances from sales agents. Ask direct and specific questions and request that the answers be documented in writing:

• „The price per square meter is based on which area: Total, Built-up, or Clear?“
• „What is the exact percentage of common parts included in the Total Area, and can you provide the calculation?“
• „Can you provide a document, separate from the marketing brochure, that shows the official Built-up Area and an estimated Clear Area?“

4. Consider an Independent Survey: For high-value transactions or in cases where significant doubts remain, engaging a licensed independent surveyor to measure the property (particularly the clear area) before signing the final deed can be a worthwhile investment.
5. Engage a Specialized Real Estate Lawyer: This is the single most important step in the process. The role of a competent real estate lawyer extends far beyond a simple check for encumbrances on the property title. A specialized lawyer will scrutinize the preliminary contract for unfavorable clauses, negotiate the inclusion of protective clauses (like the area breakdown clause), verify the developer’s legal standing and building permits, and ensure the buyer’s rights are fully protected at every stage of the transaction.²⁵

By systematically demanding transparency, buyers can do more than just protect their individual investments. When a significant number of informed consumers, guided by legal counsel, begin to insist on detailed area breakdowns as a non-negotiable condition for signing a preliminary contract, it creates powerful market pressure. Developers and agencies who repeatedly lose sales due to a lack of transparency will be economically incentivized to adapt their practices. In this way, individual acts of rigorous due diligence can collectively contribute to fostering a more transparent and equitable real estate market for all.

Conclusion: Empowering the Informed Buyer

The „shrinking apartment“ is not a myth or a simple mistake; it is the predictable and mathematically demonstrable result of applying technical, legally-defined area measurements within a commercial sales context where they are easily misinterpreted. The significant discrepancy between the advertised 102 sq.m. and the usable 75 sq.m. is born in the gap between the „Total Area“ used for marketing and the „Clear Area“ that constitutes a home. This practice, while often compliant with the letter of construction regulations, exists in a grey area with respect to consumer protection law, where the overall presentation can be deemed misleading even if the underlying data is factually accurate.

Litigation after the fact is a difficult path. The buyer’s greatest shield is not reactive legal action but proactive, preventative knowledge. The power lies in understanding the crucial difference between Total Area, Built-up Area, and Clear Area, and in leveraging this knowledge during the negotiation of the preliminary contract. By demanding full transparency, insisting on detailed contractual clauses, and performing rigorous due diligence with the aid of professional legal counsel, buyers can demystify the numbers and nullify the information advantage held by sellers.

In the Bulgarian real estate market, the most valuable square meters a buyer can acquire are not found within the walls of their future apartment, but in their comprehensive understanding of the law and the market’s practices. It is this investment in knowledge and professional advice that allows a buyer to sign a contract with confidence, ensuring that the property they pay for is, in fact, the home they will actually get.

TL;DR

When you buy an apartment in Bulgaria advertised as 102 sq.m., you often end up with only about 75 sq.m. of actual living space. Here’s why and how to protect yourself:

1. The Problem: You’re Paying for More Than Just Your Apartment

The number in the real estate ad is the „Total Area.“ This isn’t your usable living space. It’s a commercial figure calculated by adding two things together:

• The Apartment’s „Built-up Area“: This is the official size on your title deed. Crucially, it includes the full thickness of your exterior walls and half the thickness of the walls you share with neighbors and corridors.
• Your Share of „Common Parts“: You are also paying for a percentage of the building’s shared spaces—lobbies, staircases, elevators, hallways, etc. This can easily be 15-20% of the total area you’re buying.

The actual „wall-to-wall“ space where you can place furniture is called the „Clear Area“ or usable area. This is the number you intuitively think you’re buying, but it’s not mentioned in official documents and is much smaller.

2. The Math: How 102 sq.m. Becomes 75 sq.m.

• Start with the advertised 102 sq.m. (Total Area).
• Subtract the Common Parts: Let’s say they are 17% of the total. That’s ~17 sq.m. gone. You are now at 85 sq.m. (This is the Built-up Area).
• Subtract the Walls: The walls themselves take up space, often around 12% of the Built-up Area. That’s another ~10 sq.m. gone.
• You are left with ~75 sq.m. of actual, usable living space.

3. Is This Legal? Yes, but It’s Misleading.

While developers follow the technical construction laws for measurement, this practice can be considered a misleading commercial practice under the Consumer Protection Act.7 The overall presentation deceives the average buyer about what they are actually getting, causing them to make a decision they might not have otherwise made.

4. How to Protect Yourself (The Most Important Part):

• Ignore the Price Per Square Meter in Ads: It’s based on the inflated „Total Area“ and is misleading. Calculate the price based on the usable area to make real comparisons.
• Demand a Full Breakdown: Before signing anything, ask the developer or agent for a written breakdown of all three areas: Total Area, Built-up Area, and the estimated Clear (Usable) Area.
• Make it Contractual: Your most powerful tool is the preliminary contract. Insist that this detailed area breakdown is included as a clause in the contract. A seller who refuses to do this is a major red flag.
• Hire a Lawyer: This is non-negotiable. A specialized real estate lawyer will review all documents, especially the preliminary contract, and ensure your interests are protected from start to finish.9