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Thinking about buying a 3-bedroom apartment in Sofia's Lozenets district? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Vitosha or Studentski Grad where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Bulgaria Property Pack.
Will property prices increase in Bulgaria in 2025?
No, property prices in Bulgaria are not expected to rise significantly in 2025, due to a combination of economic challenges and market dynamics.
Backed by our fresh, in-depth market analysis, we’re cautious about the Bulgarian property market, which faces several headwinds that could hinder price growth.
While there are some positive indicators, such as ongoing foreign investment and infrastructure development, the overall economic environment and market conditions suggest a more stagnant outlook for property prices.
Signals pointing to a property price increase in Bulgaria
Here are some factors suggesting prices could increase:
Foreign investment in Bulgarian real estate continues to show interest, particularly in tourist areas and major cities, which could support localized price increases.
Infrastructure projects, such as improvements in transportation and public amenities, are expected to enhance the attractiveness of certain regions, potentially boosting property values in those areas.
The Bulgarian government is implementing policies to attract digital nomads and remote workers, which could increase demand for residential properties in urban centers.
Signals pointing to a property price decrease in Bulgaria
Here are some factors suggesting prices could fall:
Economic uncertainty, including inflation and potential recessionary pressures, is likely to impact consumer confidence and reduce demand for property purchases.
Rising interest rates are making mortgages more expensive, which could deter potential buyers and slow down the property market.
A potential oversupply of new developments in certain areas could lead to increased competition among sellers, driving prices down.
Demographic challenges, such as a declining population in some regions, may reduce the long-term demand for housing.
The ongoing geopolitical tensions in Eastern Europe could create an uncertain investment climate, affecting both domestic and foreign property buyers.
A slow recovery in the tourism sector, which is crucial for certain property markets in Bulgaria, could limit price growth in those areas.
Potential regulatory changes affecting property ownership and taxation could create additional barriers for buyers, impacting overall market activity.
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If property prices go up in Bulgaria, how much would they increase by?
If real estate prices in Bulgaria were to rise in 2025, the increase would likely be between 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Bulgaria appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Sofia for 150,000 euros today, don't be surprised if it's priced between 154,500 and 160,500 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Bulgarian real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| City Apartment (60 sqm / 646 sqft) | €100,000 | €103,000 | €105,000 | €107,000 |
| Modern Apartment (75 sqm / 807 sqft) | €120,000 | €123,600 | €126,000 | €128,400 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | €250,000 | €257,500 | €262,500 | €267,500 |
| Studio (30 sqm / 323 sqft) | €45,000 | €46,350 | €47,250 | €48,150 |
| Loft (80 sqm / 861 sqft) | €160,000 | €164,800 | €168,000 | €171,200 |
| Townhouse (150 sqm / 1,615 sqft) | €350,000 | €360,500 | €367,500 | €374,500 |
| Investment Property (50 sqm / 538 sqft) | €75,000 | €77,250 | €78,750 | €80,250 |
Everything you need to know is included in our Property Pack for Bulgaria
If real estate prices go up in Bulgaria, which areas are likely to see the biggest increases?
Today, people who want to move to Bulgaria are looking for a blend of historical charm and modern amenities, which Sofia's Lozenets neighborhood offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Kapana in Plovdiv has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Bulgarian market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Lozenets, Sofia | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Vitosha, Sofia | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Sofia. |
| Kapana, Plovdiv | Medium-High | Ongoing gentrification and new cultural spaces, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Varna City Center | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Boyana, Sofia | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Old Town, Plovdiv | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Burgas City Center | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Studentski Grad, Sofia | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Golden Sands, Varna | Medium-High | Its proximity to the sea, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Bansko | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Dragalevtsi, Sofia | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Nessebar | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Bulgaria?
In 2025, Bulgaria's real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025, especially in cities like Sofia and Plovdiv.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Sofia and Varna are seeing increased interest. Proximity to green spaces, schools, and transportation links is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In cities like Sofia, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Bulgaria's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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