Property values in Sofia have surged by approximately €500 per square metre over the past year, according to data from one of Bulgaria’s largest real estate agencies. Across the country’s main cities, housing costs climbed by 20% in the final quarter of 2025, signaling a renewed momentum in the real estate market.

The period of slowdown surrounding the introduction of the euro has now ended, and activity in the housing sector has returned to expected growth levels. Polina Stoykova, CEO of a leading real estate firm, noted:
“We are witnessing the market stabilize and grow at the rates anticipated under the euro. January activity was strong, despite the previous expectation of a slowdown, and the market is now operating smoothly under the new currency framework.”

Despite the cultural preference among Bulgarians for home ownership, current financial calculations suggest renting can be more economical than taking on a mortgage. Financial consultant Stoyne Vassilev explained:
“Over the last two to three years, analyses consistently show that renting often offers a better financial outcome. In certain areas, the difference between rental payments and mortgage instalments can range from 50% to 100%. For example, a €500 monthly rent could correspond to a loan repayment of €1,000.”

The discrepancy is largely due to the sharp rise in property prices, while rental rates have increased at a slower pace. Experts advise prospective buyers to plan carefully: securing at least a 20% deposit, committing to living in the property for a minimum of ten years, and avoiding loans with the maximum repayment term. Stoykova added:
“Conditions for housing loans remain highly favorable. Interest rates are still low, banks have set terms in euro, and there are no major changes in lending policies.”

Looking ahead, Vassilev expects property prices in major urban areas, particularly in Sofia, to continue rising over the long term, driven in part by inflationary pressures. However, the duration and pace of these price increases remain uncertain, leaving prospective buyers and renters to carefully weigh their options.