Arco Vara to exit Bulgarian market

Estonian real estate company Arco Vara has begun the process of exiting the Bulgarian real estate market after almost two decades to concentrate on development projects in Estonia.

Kristina Mustonen

This strategic decision, approved by the Supervisory Board in July 2025, follows a careful assessment of the company’s long-term goals and market opportunities. The sale process is underway, attracting interest from several Bulgarian real estate developers who will have the opportunity to conduct due diligence and submit acquisition offers. 
Since entering the Bulgarian market in 2006, Arco Vara has created numerous residential communities in Sofia, including Manastirski Livadi in southern Sofia, Iztok Parkside in the city center, the mixed-use Madrid BLVD building, and the Botanica Lozen residential area.
Kristina Mustonen, a member of the Management Board of Arco Vara, commented: “Exiting Bulgaria allows us to focus even more clearly on our core market – Estonia. Our major project in the Luther Quarter, one of the most attractive development areas in Tallinn, requires strong leadership, focused attention, and financing capacity. By freeing up resources from Bulgaria, we will be better positioned to realize the growth potential of our Estonian projects and strengthen our position in the domestic market.”
Kert Keskpaik, chairman of the Supervisory Board of Arco Vara, added: “This decision was not made lightly – we have achieved significant results in Bulgaria, built a strong team, and delivered high-quality developments we can be proud of. However, from the perspective of Arco Vara’s long-term growth and shareholder value, it is strategically justified to concentrate our focus on Estonia, where the potential of our projects is greater today than ever before.”