The Real Estate Market in Bulgaria: Is There a Decline in Transactions and a Change in Prices?

According to industry data, the number of real estate transactions in Bulgaria has decreased by between 15 and 20% nationwide, but this has not led to a drop in prices. On the contrary—they have risen by about 25% year-over-year, Polina Stoykova MRICS, Managing Director of BULGARIAN PROPERTIES, noted on “Good Morning, Europe.” According to her, buyers’ interest is increasingly focused on larger homes—three- and four-bedroom apartments. Stoykova noted that the market is entering a more balanced phase, in which activity is slowing down, but prices remain stable for now.

Following the euphoria surrounding the adoption of the euro, the real estate market in Bulgaria is entering a new phase of development, characterized by lower activity but no decline in prices. This was stated by Polina Stoykova MRICS, Managing Director of BULGARIAN PROPERTIES, during an appearance on Euronews Bulgaria. According to her, in the second quarter, the number of transactions in Sofia fell by about 17%, while nationwide the decline was between 15% and 20% compared to the record-breaking period a year earlier. “The euphoria has passed, and we are now in a new reality,” she noted, emphasizing that “a decline in transactions does not automatically mean a decline in prices.”




According to Stoykova, prices are not falling for the time being, but are merely slowing their rate of growth. The company’s data show that the average price of housing in Sofia during the second quarter remained around 2,680 euros per square meter, virtually unchanged from the beginning of the year, but still about 25% higher on a year-over-year basis. “Growth is slowing down or has almost come to a halt,” she explained. In Varna, the average price is around 2,000 euros per square meter; in Burgas, 1,800 euros; and in Plovdiv, around 1,700 euros.

According to Stoykova, interest in buying homes remains high, although many buyers are waiting. There is growing demand for three- and four-bedroom apartments, as well as new construction projects with guaranteed parking spaces. She noted that there are currently no indications of a rise in mortgage interest rates, although the pace of lending growth is already slowing. The rental market also remains active, with prices in Sofia having increased by about 20% compared to last year.

The expert forecasts that housing prices are not expected to fall in the coming months, but rather to rise moderately. “Prices are unlikely to go down,” said Stoykova, predicting increases ranging from 0% to 5% on a quarterly basis. According to her, the market remains stable, new construction will continue to develop, and now is a good time to both sell and buy property, as “the market will not change radically” in the short term.

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