What will happen to housing prices after entering the eurozone? This is the most common question that is discussed during all conferences, round tables and discussions concerning the real estate sector. Some say that prices are now rising because of the currency change in our country after January 1, 2026. Others are of the opinion that there will be a slight increase in prices after the date in question. Still others believe that the increase in incomes and low interest rates on mortgage loans are the factors due to which we are observing a double-digit rate of increase in property prices.
The difference in the property market in 2025 compared to previous years is that if previously the most active market was the last quarter of the year, then in 2025 we are observing activity from buyers throughout the year. The reason is that many of the buyers are of the opinion that housing prices will rise even more in 2026, analysts comment. But they add that these expectations are unrealistic and give an example of what happened in other countries with property prices immediately after the adoption of the euro - there was no sharp jump in the value of a square meter of residential space. Rather, there was a gradual increase, which varied between 8% and 12% in the first year after the currency change.
We are currently witnessing many mistakes that buyers make. One of them is that they buy, not the first, not the second, but the third property with a 100% bank loan, while not even having the amount to cover the costs of the purchase and sale. Intermediaries recall that buying a home with a mortgage is a long process that takes up to 30 years, during which the buyer must repay the loan every month. Against the background of the dynamic life we live (especially after the pandemic caused by the coronavirus) such a long-term loan is, to put it mildly, “illogical“.
The comfort for these brave investors who bought a property with 100% bank participation is that there are no indications that mortgage interest rates will rise sharply after we enter the eurozone. However, analysts recall that banks in our country have the right to choose whether to link to the European Central Bank index or to a local index. They are expected to remain linked to a local index, as they are very liquid, due to the presence of a large deposit base.
Detailed statistics on average property prices in Bulgaria by cities and neighborhoods can be seen at imot.bg