Rents for three-room apartments in Sofia have reached an average of just over 1,600 leva (around €820), according to data from a local real estate company. Over the past decade, rental prices have risen by more than 110%, more than doubling since 2015, when the average rent for such apartments was just over 760 leva (€390).

Rental rates vary widely depending on factors such as the apartment’s furnishings, location, recent renovations, and proximity to public transport or metro stations. Despite this steady increase, rent growth has lagged behind the rise in property prices. Over the same 10-year period, apartment prices in Sofia have nearly tripled.

Real estate experts note that rents are not growing as rapidly because more people are opting to buy their own homes instead of renting. Low mortgage rates, rising incomes, and inflation have encouraged many, particularly buyers under 30, to invest in property. For these buyers, monthly mortgage payments often approximate current rents, making homeownership an attractive option. Beyond financial considerations, owning property is also seen as a status symbol in Bulgaria.

Demand for rental properties in Sofia remains strong, yielding solid returns for landlords. Gross rental yields average around 4% in the city center and Lozenets district, while neighborhoods like Krastova Vada, Manastirski Livadi, and Vitosha offer yields of about 4.8%. Areas such as Malinova Dolina, Mladost, Nadezhda, and Lyulin reach roughly 5%.

For many property investors, the appeal is not only rental income but also long-term capital gains. By holding and later selling properties at higher prices, owners can realize significant profits. Some investors focus less on immediate rental management, instead relying on the potential appreciation of their residential investments over time.