British News Agency

This growth stems from strong economic performance, easy access to mortgage loans, and optimism surrounding the country’s anticipated entry into the eurozone.

In the fourth quarter of 2024, Bulgaria’s housing price index rose from 193 to 228 points compared to the same period last year, representing an annual increase of over 18% and more than double the base-year level.

According to Bulgarian Properties, the average housing price in Sofia reached €2,080 per square meter at the start of 2025. Colliers reports that detached homes in the southern parts of the capital are already priced around €500,000.

Although analysts expect a gradual market cooling, limited new construction and high household savings are likely to support moderate price growth in the coming years. To address overheating risks, the Bulgarian National Bank introduced stricter mortgage regulations in October 2024.

Property transactions hit record levels in 2024, though market activity varied by city. Sofia recorded a 10.4% increase and remains the main growth driver. Plovdiv’s market slowed, with 9.4% growth at the start of 2025 compared to 24.5% a year earlier, while Varna saw a 3.9% drop in transaction volume.

More than half of property purchases in major cities are financed through mortgages, highlighting the strong role of bank lending in the real estate market.

Rental prices also surged sharply. According to Deloitte, rents in 2024 rose by 16% in Sofia, 9% in Plovdiv, and 18% in Varna. In the capital, one-bedroom apartments now range from €400 in outer districts to €750 in central areas. The rental investment sector remains active, but the lack of regulation and reliable data continues to limit market transparency.

Bulgaria ranks among European countries with the lowest average mortgage interest rates—2.83%. For comparison, rates exceed 7.5% in Poland and approach 7% in Romania. This advantage makes home purchases relatively affordable by EU standards.

At the same time, new housing construction remains moderate—about 3.4 completed dwellings per 1,000 people in 2024, close to the regional average. Nevertheless, Bulgaria leads Europe in housing per capita, with 672 dwellings per 1,000 people, surpassing France (556) and Belgium (490). This reflects both a strong homeownership tradition and a high number of vacant properties.