According to the latest Deloitte Property Index 2025, Bulgaria’s housing market continued to expand throughout 2024, reaching record highs in both prices and transaction volumes. The growth has been driven by solid economic performance, easier access to mortgage financing, and optimism linked to the country’s expected entry into the eurozone.

Rising prices and expectations of steady growth

By the fourth quarter of 2024, Bulgaria’s housing price index climbed to 228 points, up from 193 points a year earlier, an annual increase of over 18% and more than double compared to the base year. In Sofia, average home prices rose to 2,080 euros per square meter in early 2025, data from Bulgarian Properties shows. In the southern districts of the capital, single-family homes already reach around 500,000 euros, according to Colliers.

Although analysts expect a gradual cooling of the market, housing prices are projected to keep rising moderately in the next few years, supported by limited new construction and high household savings. To address overheating risks, the Bulgarian National Bank introduced tighter mortgage regulations in October 2024.

Market activity and regional dynamics

Housing transactions reached a record level in 2024, though market activity varied across cities. Sofia registered a 10.4% increase and remains the main growth engine. Plovdiv’s market slowed, recording a 9.4% rise in early 2025 compared to 24.5% a year earlier. Varna, meanwhile, experienced a 3.9% decline in transaction volume.

More than half of home purchases in Bulgaria’s major cities are financed through mortgages, reflecting the strong role of bank lending in the property market.

Rental prices have also climbed sharply. In 2024, rents in Sofia grew by 16%, in Plovdiv by 9%, and in Varna by 18%, according to Deloitte. In the capital, one-bedroom apartments now cost between 400 euros per month in outer districts and 750 euros in central areas. The rental investment segment remains active, although a lack of regulations and reliable data continues to limit transparency in this part of the market.

Mortgage affordability and housing supply

Bulgaria remains among the European countries with the lowest average mortgage interest rates, standing at 2.83%. For comparison, mortgage rates in Poland exceed 7.5%, while in Romania they approach 7%. This advantage keeps housing purchases relatively affordable by EU standards.

At the same time, new housing construction remains moderate, with around 3.4 completed homes per 1,000 inhabitants in 2024, close to the regional average. Despite that, Bulgaria leads Europe in housing per capita, with 672 homes per 1,000 people, surpassing France (556) and Belgium (490). This reflects both a strong tradition of homeownership and the existence of many vacant properties.

Outlook for 2025 and beyond

Deloitte’s forecast suggests that Bulgaria’s housing market will remain active in 2025 but with more tempered growth. Key trends include slower price increases due to new lending restrictions, a shift of construction activity toward the outskirts of Sofia and other major cities, and growing investor interest in rental properties supported by stable interest rates and the lev’s peg to the euro. In the medium term, further regulation of the rental market is also expected to improve transparency and stability.