Authored by the expert who managed and guided the team behind the Bulgaria Property Pack
Everything you need to know before buying real estate is included in our Bulgaria Property Pack
Bulgaria is experiencing one of the most dramatic property price booms in Europe right now. Average house prices have more than doubled over the past five years, surging by 125-177%, with current annual price growth among the fastest in the EU at around 15-18% year-on-year in 2025. Urban centers like Sofia, Varna, and Burgas are seeing the sharpest increases, while rural areas exhibit weaker growth but still positive trends.
If you want to go deeper, you can check our pack of documents related to the real estate market in Bulgaria, based on reliable facts and data, not opinions or rumors.
Bulgaria's property market is experiencing unprecedented growth with house prices increasing by 125-177% over five years and annual growth rates of 15-18% in 2025, making it the EU's second-hottest real estate market after Portugal.
Sofia leads price increases with apartments averaging €1,500-€2,000 per sqm, while coastal cities like Varna and Burgas show even higher growth rates exceeding 20% annually, driven by foreign investment and tourism demand.
| City | Average Price per sqm (€) | Annual Growth Rate (%) | Rental Yield (%) |
|---|---|---|---|
| Sofia | €1,500-€2,000 | 15-18% | 4.26% |
| Varna | €1,200-€1,600 | 18-20% | 5.06% |
| Burgas | €1,100-€1,500 | 20%+ | 5.15% |
| Plovdiv | €900-€1,300 | 12-15% | 4.70% |
| Stara Zagora | €700-€1,000 | 8-12% | 4.20% |
| Rural Areas | €300-€600 | 3-8% | 3-4% |
Fact-checked and reviewed by our local expert
Yeheli Samuels 🇧🇬🇮🇱
CEO and Founder, Dira Bulgarit - Israeli real estate in Bulgaria
How much have average house prices in Bulgaria changed over the past five years?
Bulgarian house prices have experienced explosive growth over the past five years, increasing between 125% and 177%.
This dramatic surge places Bulgaria among the top performers in Europe for property price appreciation. The growth has been consistent year-over-year, with particularly sharp increases in urban areas and coastal regions.
To put this in perspective, a property that cost €50,000 in 2020 would now be worth between €112,500 and €138,500 in 2025. This represents one of the steepest residential property price increases in the European Union during this period.
The growth has vastly outpaced the EU average and reflects Bulgaria's transformation into an increasingly attractive real estate investment destination.
It's something we develop in our Bulgaria property pack.
What are the latest official statistics on property price growth in Bulgaria this year compared to last year?
As of September 2025, official data shows Bulgarian property prices are growing at an annual rate of 15.1% to 18.3% year-on-year.
This positions Bulgaria as having the second-fastest property price growth in the European Union, trailing only Portugal. The National Statistical Institute and European statistical agencies confirm these figures through their regular housing price index reports.
Compared to 2024, when annual growth was around 12-14%, the acceleration in 2025 demonstrates that Bulgaria's property boom is intensifying rather than slowing down. Urban markets are driving much of this growth, with Sofia and coastal cities posting the highest increases.
These official statistics reflect data collected through the first half of 2025, indicating sustained momentum in the Bulgarian residential property market.
Which Bulgarian cities or regions are seeing the fastest increase in housing prices right now?
Sofia leads all Bulgarian cities with the highest absolute prices, averaging €1,500-€2,000 per square meter for apartments, with premium districts exceeding €2,000 per square meter.
However, coastal cities are experiencing the fastest growth rates. Burgas is posting annual price increases exceeding 20%, while Varna shows growth rates of 18-20% year-on-year. These Black Sea destinations benefit from both domestic demand and strong foreign investment interest.
Plovdiv, Bulgaria's second-largest city, is also experiencing robust growth with annual increases of 12-15%. Secondary cities like Stara Zagora and regional centers are seeing more moderate but still significant growth of 8-12% annually.
The ski resort areas and mountain regions popular with tourists are also experiencing above-average price appreciation, though exact figures vary by specific location and property type.
Are rural areas in Bulgaria experiencing the same price trends as urban areas like Sofia, Plovdiv, or Varna?
Rural areas in Bulgaria are experiencing much more modest price growth compared to major urban centers.
While urban markets like Sofia, Plovdiv, and Varna are seeing annual growth rates of 15-20%+, rural properties typically experience growth of 3-8% annually. Rural property prices generally range from €300-€600 per square meter, making them significantly more affordable than urban alternatives.
The slower rural growth reflects limited demand from both domestic buyers and foreign investors, who predominantly focus on urban centers, coastal areas, and established tourist destinations. Rural areas also face challenges with infrastructure, employment opportunities, and access to services.
However, some rural areas near major cities or with tourism potential are experiencing stronger growth, particularly villages within commuting distance of Sofia or properties with development potential near ski resorts or the Black Sea coast.
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How do Bulgaria's house prices compare to other Eastern European countries at the moment?
Bulgaria maintains significantly lower absolute property prices compared to other Eastern European capitals while experiencing the fastest price growth in the region.
| City | Average Price per sqm (€) | Annual Growth Rate (%) |
|---|---|---|
| Sofia, Bulgaria | €1,500-€2,000 | 15-18% |
| Prague, Czech Republic | €4,000-€5,000 | 3-5% |
| Warsaw, Poland | €4,500-€5,500 | 5-8% |
| Bratislava, Slovakia | €4,000-€5,600 | 4-7% |
| Budapest, Hungary | €3,000-€4,000 | 6-9% |
| Bucharest, Romania | €1,800-€2,500 | 8-12% |
This price differential makes Bulgaria an attractive entry point for investors seeking exposure to Eastern European real estate markets, especially given the country's EU membership and upcoming Eurozone accession.
What is driving the demand for property in Bulgaria—locals, foreign buyers, or investment funds?
Bulgarian property demand comes from a combination of domestic buyers, foreign investors, and international buyers seeking vacation or investment properties.
Local Bulgarian buyers represent a significant portion of demand, particularly in Sofia and other major cities, as they rush to purchase homes before prices rise further. Many locals view real estate as a hedge against inflation and currency fluctuations ahead of Euro adoption.
Foreign buyers are increasingly influential, especially in coastal areas like Varna and Burgas, where they seek vacation properties, rental investments, or retirement homes. EU citizens benefit from unrestricted property ownership rights, while non-EU buyers face some limitations but can still purchase through legal structures.
Institutional investment remains less pronounced than in Western European markets but is growing, particularly for commercial and mixed-use developments in Sofia and major regional centers.
It's something we develop in our Bulgaria property pack.
How are mortgage interest rates in Bulgaria influencing people's ability to buy property?
Bulgarian mortgage interest rates are extremely competitive by European standards, averaging 2.74%-2.79% in 2025, which is supporting continued property demand despite rising prices.
These low rates make borrowing more accessible and affordable for Bulgarian residents, enabling many to secure financing even as property prices surge. Major Bulgarian banks like UBB and UniCredit Bulbank offer competitive mortgage products with various terms and conditions.
However, the combination of low interest rates and rapidly rising property prices is creating affordability challenges. While cheap credit supports demand, the price-to-income ratio in major cities has reached approximately 8:1, making homeownership increasingly difficult for average-income households.
Foreign buyers often benefit from these low rates if they meet residency and income requirements, though many choose to purchase properties outright to avoid financing complications.
What does rental yield look like across major Bulgarian cities, and how is it affecting investor demand?
Bulgarian cities offer attractive rental yields compared to many Western European markets, with coastal cities providing the highest returns for investors.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Bulgaria versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Burgas leads with gross rental yields of 5.15%, followed closely by Varna at 5.06%. These coastal cities benefit from strong tourist demand, short-term rental opportunities, and year-round rental markets driven by both locals and expats.
Sofia, despite having the highest property prices, offers yields of 4.26%, which remains attractive given the city's economic growth and rental demand from young professionals and international workers. Secondary cities like Plovdiv offer yields around 4.70%.
These yields are attracting both domestic and international investors, particularly those seeking higher returns than available in Western European markets while maintaining EU legal protections and market stability.
Are construction costs and new housing supply keeping up with demand in Bulgaria?
Construction costs in Bulgaria have surged by more than 60% since 2020, and new housing supply is failing to keep pace with demand, particularly in Sofia and Black Sea cities.
Rising material costs, labor shortages, and increased land prices are constraining new development. In Sofia, land costs now represent 35-50% of total development costs, significantly impacting project feasibility and final property prices.
The supply shortage is most acute in prime urban locations and desirable coastal areas, where demand consistently outstrips new construction completion. This imbalance is a key driver of continued price appreciation across Bulgarian property markets.
Developers are focusing on higher-end projects to maintain profitability margins, which further limits affordable housing supply and contributes to the affordability crisis facing middle-income Bulgarian households.
It's something we develop in our Bulgaria property pack.
What government policies or tax changes are impacting the housing market in Bulgaria right now?
As of 2025, Bulgaria has implemented several policy changes affecting the real estate market, though major housing-specific reforms remain limited.
Key policy changes include a reduction in the VAT registration threshold, modernization of tax reporting systems, and increases in certain excise duties. Municipal property tax rates remain relatively low at 0.01%-0.45% of property value, making ongoing ownership costs manageable.
The government has maintained limited national housing support programs, and local authorities have not implemented significant measures to address housing affordability in major cities. This policy approach allows market forces to drive prices with minimal intervention.
Bulgaria's planned Eurozone accession continues to influence market dynamics, as investors anticipate potential currency stability benefits and increased EU integration, though specific timelines and impacts remain under discussion.
How are wages and household incomes in Bulgaria evolving compared to house price growth?
Bulgarian wages and household incomes are failing to keep pace with property price growth, creating a significant affordability crisis in major cities.
While the minimum wage increased by 15% in 2025 and average salaries have shown modest growth, these increases are far outpaced by annual property price growth of 15-18%. This widening gap is pushing homeownership out of reach for many Bulgarian households.
In Sofia, the price-to-income ratio has reached approximately 8:1, meaning the average household would need eight times their annual income to purchase an average apartment. This ratio has worsened significantly over the past two years as price growth accelerated.
Many households are dedicating an increasing share of their income to housing costs, whether through rent or mortgage payments, reducing disposable income and affecting overall economic consumption patterns.
What do experts and real estate agencies in Bulgaria predict for property prices over the next 12 to 24 months?
Real estate experts and agencies in Bulgaria predict continued price growth through 2026, though most expect some moderation from current extreme growth rates.
Most analysts forecast annual price increases in the 3-10% range through 2026, representing a cooldown from current 15-18% growth but still indicating continued appreciation. This moderation reflects growing affordability constraints and potential economic uncertainties.
Prime districts in Sofia and vacation destinations along the Black Sea coast are expected to maintain stronger upward pressure due to limited supply and sustained demand from both domestic and foreign buyers.
However, experts express increasing caution about market risks, including stretched affordability, potential interest rate changes, and uncertainties surrounding Bulgaria's Eurozone accession timeline. Some predict a slight moderation in urban price increases as supply gradually increases and economic conditions stabilize.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Bulgaria is experiencing one of Europe's most dramatic property price booms, with house prices more than doubling over five years and current annual growth rates of 15-18% positioning it as the EU's second-hottest real estate market.
While this presents significant opportunities for investors and those seeking European property exposure at relatively affordable entry points, rising affordability challenges and market overheating risks require careful consideration for potential buyers.
Sources
- Global Property Guide - Bulgaria Price Changes
- Premium Property BG - Bulgaria Real Estate Market 2025
- Revolution Estate - Bulgaria Housing Price Growth
- Novinite - Bulgaria Real Estate Market Analysis
- Housing Europe - Bulgaria Housing Overview
- The Global Economy - Bulgaria Mortgage Rates
- Global Property Guide - Bulgaria Rental Yields
- Novinite - Bulgaria Housing Price Forecasts