By nearly 18%, and in some places even 20%, housing prices in Sofia increased in the first quarter of this year compared to the same period in 2024. This growth rate is comparable to that of the second half of the previous year, when the market accelerated significantly.
„2025 is one of the strongest years for the housing market that we have observed in the last two decades. It is setting records in both inquiries and the number of transactions concluded in its first three months. From the first days of the year, buyers have firmly returned to the market and were ready to make deals, and the market is characterized by massive demand throughout the country and rapid absorption of the available supply, no matter how small it is at the moment“, commented Polina Stoykova, Executive Director of BULGARIAN PROPERTIES.
The reasons are many, but the strongest effect is the available bank financing, which is still at very low interest rates.“
“Our admission to the eurozone also has an impact, as people want to invest before this happens and prices possibly increase further, and sellers are waiting and this changes the balance of the market towards insufficient supply, which in turn also keeps prices high“, she added.
Since the beginning of the year, the threshold of 2000 EUR/sq m has been overcome, with the average price of homes purchased through the company reaching 2080 EUR/sq m.
The average total price of purchased apartments rose to EUR 150,000. For comparison, in 2020 the average purchase price of an apartment in the capital was EUR 100,000, which means an increase of 50% in 5 years.
„Bulgaria's accession to the eurozone will unclog the market – we have yet to see exactly in which direction. We expect people to calm down and gain security in their savings and assets, and then start making decisions about them. These decisions will be based on market trends, on how lending will change and whether there will be higher interest rates or at least a change in the way they are formed“, Stoykova predicts.
In any case, this will be good for the market, which in recent years has been operating under the pressure of various stressful factors and is growing faster than our expectations.
Detailed statistics on average property prices in Bulgaria by cities and neighborhoods can be seen HERE