Bulgarian property market growth slows but remains double-digit

Sofia, Burgas and Varna hold the championship in the most expensive housing in Bulgaria

House prices in Bulgaria have increased by an average of 14% in the last 12 months. This is according to the data of BULGARIAN PROPERTIES, comparing prices in the regional cities at the end of the third quarter of 2024 compared to a year earlier.

By comparison, a 21% rise was recorded for year 2023. It can be seen that overall price increases are slowing this year compared to last year, but remain relatively high.

The biggest increase in the price of a square meter is in the regional cities of Vidin, Kyustendil, Lovech and Sliven, where for another year a rise of over 20% is reported. The reason for this is mostly the catching up trend for regions where the market development was lagging behind before. Interestingly, Sofia, Plovdiv and Stara Zagora reported growth rates of 6.9 to 7.7%, which is below the national average. At the same time, demand in these cities remains among the highest.

1,837 euro/sq.m. is the average price for residential properties in Sofia, according to the statistics of BULGARIAN PROPERTIES. Varna with 1,443 euro/sq.m., Burgas with 1,300 euro/sq.m. and Plovdiv with 1,259 euro/sq.m. follow in the ranking of the most expensive properties. The cheapest are the homes in Silistra - 694 euro/sq.m.

The upward trend has remained steady throughout the year, with no indications of a slowdown in the market or an imminent correction, summarizes Polina Stoykova MRICS, Managing Director of BULGARIAN PROPERTIES.

On 1 October, new rules on the granting and renegotiation of mortgages for households came into force, which are intended to cool the sector to some extent. Under these new rules, the mortgage loan cannot exceed 85% of the value of the property, the monthly cost of the loan should not exceed 50% of the borrower's monthly income and the maximum repayment period becomes 30 years.

Experts point out that the changes are not restrictive and do not expect to lead to a sharp rise in interest rates, but rather to continue the smooth upward movement. Mortgage lending in the country is still relatively cheap compared to other EU countries, with BNB data as of August 2024 showing household mortgage rates at an average of 2.55% in BGN and 2.79% in EUR.

Properties in the capital of Sofia

In the Bulgarian capital, the most expensive are traditionally the areas of Doctor's Garden (with an average price of 3,691 euro/sq.m.) and the districts of Yavorov and Ivan Vazov (with prices just over 3,000 euro/sq.m.). Immediately after them are Medical Academy, Izgrev and Iztok with average residential property prices of about 2,770 euro/sq.m. Obelya, Lyulin, Nadezhda, Levski are among the neighborhoods with the lowest prices in Sofia - ranging from 1,300 to 1,500 euro/sq.m.

The highest price growth compared to the end of 2023 is in the neighborhoods of Vrubnitsa, Geo Milev, Ivan Vazov, Hladilnika, Zona B-5 and others (+13%). The smallest change in prices is for housing in Mladost, Polygona, Levski G, Gotse Delchev, Druzhba 2, Zaharna Fabrika (+3%). New construction is the most preferred among buyers, and due to the limited supply in the segment remains the trend for convergence of prices of resale homes and new build properties.

Want to check how the price of your property has changed?

Use BULGARIAN PROPERTIES' online calculator to get a free express valuation in seconds. It's a good guide for those who are considering selling or just want to get a feel for trends in the sector. You can also request a free consultation with an agency expert.




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