Property prices in Bulgaria have risen by approximately 6% since the beginning of 2025, driven by ongoing market growth and expectations surrounding the country’s accession to the eurozone.

A key characteristic of Bulgaria’s real estate sector over the past decade is that more than 70% of transactions have been completed with cash payments. This is despite Bulgaria being the EU’s poorest member state in terms of official income and social security contributions.

Yordan Yordanov, managing director of a leading real estate brokerage firm, explained to BNR that the discrepancy stems from the large informal economy. In the private sector, many people are not insured based on their actual earnings, and a significant portion of income is received under the table. As a result, official economic data fails to reflect the true purchasing power of Bulgarians.

He emphasized that the persistent rise in property prices contradicts the notion of widespread poverty: “People with low incomes don’t typically buy real estate or pay in cash—they rely on bank financing. But Bulgaria has some of the lowest levels of housing credit debt in Europe.”

Yordanov attributed the current 6% increase in property values to broader inflationary trends, particularly following the 15% hike in the minimum wage as of January 1. He noted that the Bulgarian National Bank has implemented measures aimed at protecting lower-income citizens from the effects of inflation.

When comparing mortgage usage across cities, Yordanov pointed out that Sofia leads in home lending activity, unlike Varna or Plovdiv. In the capital, higher real estate prices naturally push buyers toward mortgage financing. He added that, even for buyers with sufficient cash reserves, it remains more advantageous to take out a mortgage. “Due to inflation, the cost of interest is effectively neutralized. If I had the funds, I would still opt for a mortgage and invest the remaining money elsewhere for higher returns,” he said.

Looking ahead, Yordanov believes Bulgaria’s entry into the eurozone will significantly boost demand in the property sector, further fueling interest in the real estate market.