The real estate market in Bulgaria continues to be driven by strong lending, as the Bulgarian National Bank's data for February clearly shows - interest in purchasing homes remains high, and banks continue to actively finance households.
By the end of the second month of 2026, housing loans reached EUR 17.299 billion. This is a growth of 27.8% on an annual basis - an impressive increase, which is equivalent to nearly EUR 3.8 billion more than in the same period last year. Although the growth rate has slowed down slightly compared to January, the dynamics remain extremely strong.
This growth is not an isolated indicator, but part of a broader picture. The total volume of loans to households now reaches 29.341 billion euros, which means an increase of over 20% in a year. In parallel, consumer lending is also expanding at a double-digit pace, which suggests that households continue to rely on borrowed funds both for property purchases and for current consumption.
Against this background, credit activity in the business sector seems more moderate. Loans to non-financial enterprises increased by just under 10% and reached 27.8 billion euros. This clearly outlines the trend - the engine of the credit market is currently not the corporate sector, but housing finance.
This is where the key to the state of the property market lies. The high growth of mortgage loans shows that the demand for housing remains sustainable, and access to financing continues to support prices. At such lending rates, it is difficult to expect a sharp cooling of the market in the short term.
At the same time, the slight slowdown in growth, although minimal, can be seen as the first signal of gradual normalization. Whether this will turn into a more serious trend will depend on factors such as interest rates, household incomes and the general economic environment.
The total volume of loans to the non-governmental sector has already reached nearly 62 billion euros, which is about half of the country's gross domestic product. This shows how strong the importance of credit resources is for the economy - and especially for the property market.
For now, however, the signal is clear - The mortgage boom continues, and the appetite for housing remains the leading factor determining the direction of the market.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found at imot.bg