More Bulgarians are rushing to purchase property, fearing that housing prices will rise further after the country joins the Eurozone. According to a Bulgaria ON AIR interview with credit consultant Tihomir Toshev, citizens face increasing difficulties in buying homes, particularly in larger cities, where the rise in property prices has outpaced income growth. This trend is evident as, for the first time in three years, the Bulgarian National Bank (BNB) has recorded a slight decline in housing loans, amounting to 30 million, although overall lending remains strong.

Property prices in the country's ten largest cities have risen by 25-26% over the past two years, leaving many potential homebuyers in a difficult position as their income growth struggles to keep pace with the skyrocketing costs. Despite the growing interest in purchasing, the rate of income growth is insufficient to keep up with the sharp increase in prices, particularly for those trying to buy in major urban areas.

In response to the housing market boom, the Bulgarian National Bank introduced stricter regulations on mortgage lending. This came after several years of rapid growth in the housing loan sector, where some banks were offering loans that accounted for up to 70% of a household's income, a level deemed unsustainable for managing other expenses. Toshev notes that these measures have had a significant impact on curbing excessive lending.

Toshev also pointed out that different age groups approach the housing market differently. People between the ages of 35 and 45 tend to make more thoughtful, stable decisions about purchasing property, while younger individuals, who are more active in the market, often take on riskier loans.

Looking ahead to 2026, Toshev predicts that the property market will see another record year of activity, driven by a rush to buy before the country adopts the euro. However, he expects a calmer year thereafter, with a noticeable decline in lending. Despite the low interest rates and a bad loan rate of just 1.03% according to BNB statistics, Toshev emphasizes that the majority of people—about 90%—believe that purchasing property before the euro is introduced is the best option.