0
Hello,
Favourite properties (0)
Saved searches
Selected for you
Notifications
Subscriptions
Settings
Sign out
Close

The housing market in Sofia in 2022 - accelerated price growth and low supply

2022-07-19   |  Polina Stoykova MRICS, Managing Director and Head of Research of BULGARIAN PROPERTIES

In the first half of the year, we observed a real estate market in the Bulgarian capital, characterized by very high demand and insufficient supply. This explains both the accelerated price growth and the slowdown in sales growth.

New construction projects got off to a slower start due to rising material prices and supply difficulties, and those that were on the market were actively selling "off-plan". In addition, many property owners pulled out of the market due to high inflation, and this reduced the supply further.

At the same time, demand continued to be supported by favorable bank lending and rising incomes. Interest rates on mortgage loans continued to fall, and the volume of newly granted loans - to grow, maintaining the pace of 40% growth from 2021.

The other factors that influence the housing market also continued to have a positive impact - unemployment remained at low levels - around and below 5%, and incomes continued to grow - by around 10% on average for the country and 12% for Sofia in the first quarter according to NSI data.

The war and inflation gave an additional stimulus to the demand for investment in a safe asset, such as real estate, and the market felt a housing shortage not only in Sofia, but also throughout Bulgaria. The supply that existed on the secondary market, even in holiday resorts and in the countryside, has greatly diminished and the offers that do come to market now often sell out in a matter of days.

All this has led to an accelerating price growth, which according to BULGARIAN PROPERTIES data reached 21% in Sofia in Q2 of 2022. This represents the fastest increase since 2008.

Sales volume

BULGARIAN PROPERTIES' calculations based on data from the Registry Agency show that property transactions in Bulgaria in Q2 grew by only 4.3% compared to the same period in 2021. This comes after a growth of around 30% in 2021 and by about 10% in the first quarter of 2022.

There is also a slowdown in the growth rate of transaction volume in Sofia, where a growth of only 0.28% on an annual basis was registered after a 30 percent increase in 2021.

These figures reflect both the slight cooling of interest due to rising prices and - to a much greater extent - the main trend we outline for the period and which we consider to be leading - insufficient supply to meet the available demand.

Average prices and preferred housing in Sofia

According to BULGARIAN PROPERTIES data, the average price of apartments purchased in Sofia in Q2 is 1,425 Euros/sq.m. – a rise from 1,345 Euros/sq.m. in the first quarter and 1,175 euros/sq.m. a year earlier – in Q2 of 2021.

Read the full report here

Subscribe for our newsletters with latest market analyses and top offers

View properties in Sofia


  Read more news

Share
Central Park - the best-selling new development in Sofia in 2024!
Homes for sale in one of the largest new construction developments in Sofia!

A unique gated complex recreating the style and atmosphere of New York's Central Park. Modern buildings, space, greenery and breathtaking views! A future icon of the Bulgarian capital that will bring a new standard for quality of life. Choose your home now - big choice and attractive prices!
See More
☀️ Discover wonderful homes in the Bulgarian beach resorts!
Check out our selection of properties on the Bulgarian Black Sea Coast! Attractive prices, regular flights to Burgas and Varna international airports. Perfect for frequent visits, summer holidays, and more.
See More

More News

latest news
Bulgaria Joins the Eurozone on 1 January 2026

In a historic and long-anticipated move, the Council of the European Union has given its final approval for Bulgaria to adopt the euro as its official currency. As of 1 January 2026, Bulgaria will become the 21st member of the euro area, marking a significant step forward in the country’s European integration.

This milestone is not just symbolic — it represents a major economic achi...

09 July, 2025
latest news
Two decades of Santa Marina complex – a sustainable model for coastal living

The holiday complex in Sozopol offers well-developed infrastructure and a variety of opportunities for relaxation and entertainment.

In 2025, the Santa Marina holiday village in Sozopol celebrates its 20th season – an important milestone for one of the most successful and recognisable projects on the Bulgarian Black Sea coast. Over two decades, the complex has established itself as ...

07 July, 2025
Company news
BULGARIAN PROPERTIES Agents of July 2025 🏆

Your experts in a fast-evolving Bulgarian property market!

June was an impressive month for the real estate market and a strong close to the first half of the year. Deals were finalized at a high pace, we opened a new office in Sunny Beach, launched operations in Shumen, appeared in national media, and reaffirmed our leading market position!

We are proud to present o...

02 July, 2025
Press & Media
What to expect for housing prices in Bulgaria after the introduction of the euro?

Property prices in Sofia are still significantly lower than those in other European capitals

How will the property market in Bulgaria change after we join the eurozone? This is a key question for both property owners and those considering a purchase. Will prices rise? Will there be a slowdown? Should I buy, sell, or wait?

The experience of other countries shows that a...

30 June, 2025

REQUEST DETAILS