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's property market has demonstrated remarkable stability and growth over the past five years, with prices more than doubling in major cities.
As of September 2025, the Bulgarian real estate market shows strong fundamentals with average property prices ranging from €1,200-1,245 per square meter in Burgas to €1,940-2,225 per square meter in Sofia, offering competitive rental yields of 4.5-5% that outperform many Western European markets.
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 has experienced exceptional growth with prices increasing 70-120% over five years across major cities, driven by strong domestic demand and limited new supply.
The market offers attractive rental yields of 4.5-5%, competitive mortgage rates around 2.8% for foreigners, and moderate transaction costs of 6-7% of property value.
| City | Average Price (€/sqm) | 5-Year Price Growth | Rental Yield | Days on Market |
|---|---|---|---|---|
| Sofia | €1,940-2,225 | +100% | 4.3-4.5% | 69 days |
| Plovdiv | €1,200-1,250 | +80-100% | 4.7% | 70-90 days |
| Varna | €1,340 | +80-100% | 5.1% | 90+ days |
| Burgas | €1,200-1,245 | +70-90% | 5.2% | 90+ days |
Fact-checked and reviewed by our local expert
Yeheli Samuels 🇧🇬🇮🇱
CEO and Founder, Dira Bulgarit - Israeli real estate in Bulgaria
How much have property prices in Bulgaria increased or decreased in the past five years?
Property prices in Bulgaria have experienced dramatic growth over the past five years, with increases ranging from 70% to over 100% depending on the city.
Sofia has led this surge with property prices more than doubling since 2020, representing an increase of over 100%. The capital city has seen annual price rises between 7% and 20% depending on the specific district, with some central Sofia neighborhoods experiencing even larger gains.
Plovdiv, Varna, and Burgas have followed similar patterns with price increases of 80-100% over the five-year period. The nationwide average increase across major cities is estimated at 70-120%, making Bulgaria one of the fastest-growing property markets in Europe during this timeframe.
In 2024 alone, property prices rose by approximately 14-18% across the country, indicating that the growth momentum continues to be strong as of September 2025.
It's something we develop in our Bulgaria property pack.
What are the current average property prices per square meter in Sofia, Plovdiv, Varna and Burgas?
As of September 2025, property prices per square meter vary significantly across Bulgaria's major cities, with Sofia commanding the highest prices.
| City | Average Price (€/sqm) | Premium Areas (€/sqm) |
|---|---|---|
| Sofia | €1,940-2,225 | Up to €4,000 in central districts |
| Plovdiv | €1,200-1,250 | Up to €1,250 in prime districts |
| Varna | €1,340 | Over €2,000 in central/premium areas |
| Burgas | €1,200-1,245 | Over €2,000 for new builds |
Sofia remains the most expensive market, with average prices ranging from €1,940 to €2,225 per square meter. Premium central districts can reach up to €4,000 per square meter for luxury properties.
Plovdiv, Bulgaria's second-largest city, offers more affordable options with prices between €1,200-1,250 per square meter. Varna, the major Black Sea port city, averages €1,340 per square meter, while Burgas maintains similar pricing to Plovdiv at €1,200-1,245 per square meter.
How do rental yields in Bulgaria compare to other European countries right now?
Bulgaria offers competitive rental yields that outperform many Western European markets, with average gross rental yields ranging from 4.5% to 5.15% across major cities.
Sofia provides rental yields of approximately 4.3-4.5%, while regional cities offer higher returns with Plovdiv at 4.7%, Varna at 5.1%, and Burgas at 5.2%. Coastal cities and smaller units typically generate higher yields than the capital.
Compared to other European countries, Bulgaria's yields are positioned in the upper mid-range. They significantly exceed yields in Germany, Switzerland, and France, where yields often fall below 3-4%. However, they trail some emerging markets like Moldova or certain Baltic states that can offer yields above 6%.
The higher yields in budget and suburban areas, combined with strong rental demand from young professionals, students, and tourists, make Bulgaria particularly attractive for income-focused property investors.
Are property prices in Bulgaria expected to rise, stay flat or fall over the next two to three years?
Property prices in Bulgaria are expected to continue rising moderately through 2026-2028, with no significant correction anticipated.
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Forecasts indicate annual growth rates of 5-10% in Sofia and Varna, while Burgas and secondary cities are expected to see more moderate increases of 3-6% annually. Bulgaria's upcoming eurozone entry is expected to provide additional upward pressure on prices.
New construction and prime location properties are particularly likely to benefit from continued price appreciation. The combination of limited new supply, ongoing demand from both domestic and foreign buyers, and Bulgaria's EU integration continues to support price growth.
No sharp correction is predicted barring a major global economic crisis, as the market fundamentals remain strong with sustained demand and constrained supply in key urban areas.
What percentage of buyers in Bulgaria are foreign investors versus local residents?
The Bulgarian property market remains dominated by local residents, who account for 80-90% of all property transactions, particularly in Sofia and inland cities.
Foreign buyers represent 10-20% of the market in specific regions, with their presence most pronounced in coastal areas and ski resort destinations. In tourist-focused markets and some seaside cities, foreign buyer participation can reach the upper end of this range.
The primary foreign buyer demographics include UK citizens, Germans, Israelis, Russians, and Poles. EU citizens benefit from easier purchase processes, while non-EU buyers face additional procedural requirements but can still acquire property relatively easily.
This buyer composition indicates a healthy domestic market foundation while benefiting from international investment interest, particularly in leisure and tourism-oriented properties.
How easy is it to resell a property in Bulgaria, and what is the average time on the market?
Property resale in Bulgaria is relatively efficient, with urban properties typically selling within 2-3 months of listing.
In Sofia, sold properties average approximately 69 days on the market, making it the most liquid market in the country. Other major cities like Plovdiv, Varna, and Burgas typically see properties sell within 70-90 days.
Rural and tourist market properties may take considerably longer to sell, sometimes requiring 6-12 months depending on location and property type. The efficiency of sale often depends on realistic pricing, property condition, and local market dynamics.
The relatively quick sale times in urban areas reflect strong underlying demand and active market participation, making Bulgaria's property market reasonably liquid for European standards.
What are the mortgage interest rates available to foreigners and locals in Bulgaria today?
Mortgage interest rates in Bulgaria are highly competitive as of September 2025, offering attractive financing options for both local and foreign buyers.
Local Bulgarian residents can access mortgage rates ranging from 2.74% to 3.1% for both lev and euro-denominated loans. Foreign and EU buyers face slightly higher but still competitive rates of 2.79% to 2.82%.
Maximum loan-to-value ratios for foreigners typically range from 80-85% for completed properties, with lower ratios available for off-plan developments. Prime borrowers may qualify for rates as low as 2.5% from select lenders.
Both fixed and variable rate options are available, with euro-denominated loans becoming increasingly popular in anticipation of Bulgaria's eurozone entry. These competitive rates make leveraged property investment particularly attractive in the current market.
How strong is demand for rental properties in major Bulgarian cities and tourist areas?
Rental demand remains exceptionally strong across Bulgaria's major cities and tourist destinations, driven by multiple demographic and economic factors.
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.
Sofia, Plovdiv, Varna, and Burgas all experience robust rental demand from young professionals, university students, and international workers. The capital particularly benefits from its role as the country's economic center, attracting domestic migration and foreign professionals.
Coastal and ski resort areas see pronounced seasonal demand patterns, though many locations now attract year-round tenants including digital nomads and remote workers who have discovered Bulgaria's favorable cost of living and improved infrastructure.
Tourist accommodation demand has recovered strongly post-COVID, with both traditional long-term rentals and short-term vacation rentals performing well in appropriate locations.
It's something we develop in our Bulgaria property pack.
What taxes and fees should a buyer realistically expect to pay when purchasing property in Bulgaria?
Property acquisition costs in Bulgaria are moderate compared to Western European markets, typically totaling 6-7% of the property value for standard transactions.
The main costs buyers should budget for include:
- Property acquisition tax: 2-3.5% of property value (varies by municipality)
- Notary fees: 1-1.5% of property value
- Registration and land registry fees: Approximately €25-€50
- Legal fees: €300-€600 for standard transactions
- Annual property tax: 0.1-0.45% of official tax valuation
For complex transactions involving multiple parties or unusual circumstances, total costs can reach up to 15% of property value. Buyers should also budget for property surveys, translations, and potential renovation costs.
These transaction costs are significantly lower than many Western European countries, making Bulgaria attractive for international property investment.
How much new housing supply is being built in Bulgaria each year compared to the demand?
New construction supply in Bulgaria is currently lagging behind demand, particularly in Sofia, Varna, and popular resort areas, creating upward pressure on prices.
Despite significant volumes of new completions each year, construction output cannot keep pace with growing demand from both domestic buyers and international investors. This supply-demand imbalance is most pronounced in Sofia, where urban development is constrained by available land and planning approvals.
Varna and sought-after resort destinations also face supply constraints, with new development often focused on luxury segments rather than mid-market housing where demand is strongest.
This structural supply shortage is one of the key factors supporting continued price appreciation and suggests that the current growth trajectory may continue as long as demand remains robust and new supply remains limited.
What risks are associated with owning property in Bulgaria, such as legal issues or economic instability?
Property ownership risks in Bulgaria are generally manageable, though buyers should be aware of specific considerations related to property documentation and market dynamics.
The main risks include potential overheating in select markets, issues with older buildings lacking proper documentation, and possible future oversupply in some resort locations. Rural properties and unfinished developments carry higher legal risks than urban, registered freehold properties.
Legal risks are typically low for established urban properties with clear title, but buyers should conduct thorough due diligence on property history and documentation. Working with qualified local legal counsel is essential for foreign buyers unfamiliar with Bulgarian property law.
Macroeconomic risks are relatively limited given Bulgaria's EU membership and stable political environment, though the economy remains somewhat vulnerable to external shocks or significant tourism declines that could affect coastal property values.
It's something we develop in our Bulgaria property pack.
How did Bulgaria's property market perform during recent global crises, and how quickly did it recover?
Bulgaria's property market demonstrated remarkable resilience during recent global crises, particularly the COVID-19 pandemic, showing strong recovery capabilities.
During the COVID-19 crisis, property prices experienced only brief, modest declines before rebounding quickly in 2021-2022. The market showed sustained growth throughout 2023-2025, indicating robust underlying fundamentals.
The rapid recovery was supported by several factors including Bulgaria's EU integration, ongoing internal migration to major cities, limited new housing supply, and maintained confidence in the domestic banking system.
This crisis performance history suggests the Bulgarian real estate market has strong long-term fundamentals and recovery capacity, making it relatively resilient compared to more volatile emerging markets while offering better growth prospects than mature Western European markets.
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's property market demonstrates exceptional stability with consistent growth patterns, strong rental yields, and manageable transaction costs making it an attractive destination for both investors and residents.
The combination of limited supply, growing demand, competitive financing, and EU integration provides a solid foundation for continued market appreciation through 2028.
Sources
- INVESTROPA - Average Apartment Price per sqm Sofia
- International Investment - Apartment Prices in Bulgaria 2025
- INVESTROPA - Average Apartment Price Bulgaria
- Bulgarian Properties - Housing Markets in Major Cities
- Global Property Guide - Bulgaria Rental Yields
- Vivaldi Estate - Real Estate Forecast Bulgaria 2025
- Novinite - Bulgaria Home Prices Eurozone Entry
- The Global Economy - Bulgaria Mortgage Interest Rate