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Everything you need to know before buying real estate is included in our Bulgaria Property Pack
Bulgaria's property market is experiencing significant price growth across all major cities and regions.
Property prices have risen between 15% and 18% nationally in the past 12 months, with some coastal cities like Varna leading with increases of over 23%. This growth is driven by limited supply, strong foreign demand, and Bulgaria's anticipated Eurozone accession, making it one of Europe's fastest-growing property 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 prices have surged 15-18% nationally in the past year, with Varna leading at 23.5% growth and Sofia close behind at 18.2%.
This price momentum is expected to continue through 2025, driven by supply shortages, foreign investment, and the country's potential euro adoption.
| City | Annual Price Growth | Average Price per sqm |
|---|---|---|
| Varna | 23.5% | €1,550-€1,676 |
| Sofia | 18.2% | €1,840-€2,225 |
| Burgas | 12.3% | €1,200-€1,400 |
| Plovdiv | 15.0% | €1,150-€1,328 |
| Vidin | 20%+ | €500-€700 |
| Kyustendil | 20%+ | €450-€650 |
| National Average | 15-18% | €900-€1,200 |
Fact-checked and reviewed by our local expert
Yeheli Samuels 🇧🇬🇮🇱
CEO and Founder, Dira Bulgarit - Israeli real estate in Bulgaria
How much have Bulgarian property prices increased in the last 12 months?
Bulgarian property prices have experienced remarkable growth over the past year, with national apartment prices rising between 15% and 18% year-on-year as of September 2025.
This represents one of the strongest price appreciation rates in the European Union. The growth has been particularly pronounced in major urban centers, with some cities significantly outpacing the national average. Varna leads the charge with an impressive 23.5% annual increase, followed closely by Sofia at 18.2% and Burgas at 12.3%.
Regional centers have also seen substantial growth, with cities like Vidin, Kyustendil, Lovech, and Sliven recording price surges over 20% for two consecutive years. This widespread price momentum indicates a robust and sustained bull market across the Bulgarian residential property sector.
The price increases have been consistent across different property types, though new-build apartments have seen the most dramatic appreciation, often commanding 15-25% premiums compared to older housing stock.
It's something we develop in our Bulgaria property pack.
Which Bulgarian cities are experiencing the fastest property price growth?
Varna is currently leading Bulgaria's property price growth with a 23.5% annual increase, making it the hottest market in the country.
Sofia follows as the second-fastest growing market with an 18.2% annual price increase, driven by its status as the capital and primary economic hub. The city's limited new supply combined with high domestic and international demand continues to fuel price appreciation.
Several regional centers are experiencing exceptional growth rates exceeding 20% annually. Vidin, Kyustendil, Lovech, and Sliven have all recorded price surges over 20% for two consecutive years, indicating sustained momentum in these secondary markets.
Burgas rounds out the major coastal cities with a 12.3% annual increase, while Plovdiv, as Bulgaria's second-largest city, maintains steady growth around the national average of 15-18%. Black Sea coastal areas continue to attract significant foreign investment, particularly from buyers seeking holiday homes and rental properties.
The fastest growth is concentrated in cities with strong economic fundamentals, tourist appeal, or strategic location advantages.
What are current apartment and house prices per square meter in Sofia, Varna, and Plovdiv?
Sofia commands the highest property prices in Bulgaria, with apartments averaging €1,840-€2,225 per square meter as of September 2025.
| City | Average Price per sqm | Premium Areas |
|---|---|---|
| Sofia | €1,840-€2,225 | €3,000-€4,000 (center) |
| Varna | €1,550-€1,676 | €3,300 (coastal premium) |
| Plovdiv | €1,150-€1,328 | €1,950 (city center) |
| Sofia Suburbs | €1,000+ | €1,500-€2,000 |
| Varna Suburbs | €900-€1,200 | €1,500-€2,000 |
| Plovdiv Suburbs | €800-€1,000 | €1,200-€1,500 |
How do current Bulgarian property prices compare to pre-COVID and five-year-ago levels?
Bulgarian property prices have more than doubled since 2020 in major cities like Sofia, representing one of Europe's most dramatic price appreciation stories.
The COVID-19 pandemic marked a turning point for the Bulgarian property market, with prices accelerating significantly from 2020 onwards. Sofia's apartment prices have experienced particularly dramatic growth, with current levels representing increases of over 100% compared to pre-pandemic prices.
Nationally, Bulgaria has recorded property price growth exceeding 100% over the past 14 years, outpacing most European Union countries. This long-term trend has accelerated since 2020, with the past three years showing the steepest price appreciation in the country's modern history.
Varna and other Black Sea coastal cities have followed similar trajectories, with prices doubling or nearly doubling since 2020. Even secondary cities and regional centers have seen substantial appreciation, typically ranging from 60-80% growth since pre-COVID levels.
The five-year comparison shows that current prices represent a fundamental shift in the Bulgarian property market, moving from one of Europe's most affordable to a rapidly appreciating market that attracts significant international investment.
What factors are driving property price increases in Bulgaria?
Limited new supply, particularly in Sofia and Varna, is the primary factor pushing Bulgarian property prices higher.
1. **Supply Constraints**: Construction activity lags significantly behind demand, especially in major cities where land availability is limited and development approvals are slow. 2. **Strong Foreign Demand**: International buyers continue to show robust interest in Bulgarian properties, particularly in Sofia, Black Sea coastal areas, Bansko, and Plovdiv. 3. **Domestic Migration**: Internal migration to major cities for employment and improved quality of life increases urban housing demand. 4. **Income Growth**: Rising wages and improving economic conditions support higher property values, though price appreciation outpaces income growth. 5. **Modern Property Premiums**: New-build apartments with energy efficiency features and modern amenities command significant premiums over older housing stock.Don't lose money on your property in Bulgaria
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Is foreign buyer demand still strong in Bulgaria, and where are they purchasing?
Foreign buyer demand remains exceptionally strong in Bulgaria, with international investors continuing to drive significant portions of sales in key markets.
Sofia attracts the highest volume of foreign investment, particularly from buyers seeking modern apartments in central districts and new developments. The capital's status as Bulgaria's economic center and its improving infrastructure make it highly attractive to international investors.
The Black Sea coast, including Varna and Burgas, continues to see robust foreign demand, especially for holiday properties and rental investments. Coastal properties offer both lifestyle benefits and strong rental yields, making them popular with buyers from Western Europe, the UK, and other EU countries.
Bansko remains a major draw for foreign buyers interested in ski resort properties and mountain retreats. The resort town's established infrastructure and year-round appeal support consistent international demand.
Plovdiv has emerged as an increasingly popular destination for foreign buyers seeking value opportunities in Bulgaria's cultural capital, with prices still significantly below Sofia levels while offering strong growth potential.
Which property types are experiencing the fastest price increases?
New-build apartments are experiencing the most significant price appreciation, often commanding 15-25% premiums compared to older housing stock.
Modern apartments with energy efficiency features, contemporary design, and quality construction materials are particularly sought after by both domestic and foreign buyers. These properties benefit from lower maintenance costs, better financing terms, and stronger rental demand.
Small apartments and studios remain in highest demand among both end-users and investors, driving particularly strong price growth in this segment. The combination of affordability for first-time buyers and strong rental yields for investors supports premium pricing.
Houses and land outside major cities are also increasing in value, though at less dramatic rates than urban apartments. Rural and suburban properties typically see annual appreciation of 8-15%, compared to 15-25% for prime urban apartments.
Luxury properties in prime locations command the highest absolute prices and continue to appreciate strongly, though the volume of transactions is lower than in the mass market segments.
How many new construction projects are currently underway in Bulgaria?
Construction activity in Bulgaria is increasing, with notable growth in Sofia and Black Sea cities, but new building permits and completions still lag significantly behind demand.
The first quarter of 2024 saw the highest number of property sales in Sofia since 2008, indicating strong market activity. However, the completion of new projects continues to fall short of market demand, contributing to ongoing price pressure.
Sofia has the highest concentration of new construction projects, with numerous residential developments in various stages of completion. Many of these projects are pre-sold before completion, indicating strong buyer confidence and limited available inventory.
Varna and other Black Sea coastal cities are experiencing increased construction activity, particularly for holiday and investment properties. However, seasonal construction limitations and regulatory approvals continue to constrain supply growth.
The construction lag creates a supply-demand imbalance that directly contributes to price appreciation, as buyers compete for limited available properties while waiting for new completions.
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.
What are rental yield trends in Bulgaria and how do they affect investor demand?
Gross rental yields for long-term rentals in Bulgaria's main cities range from 3% to 6%, maintaining attractive returns despite rising property prices.
Sofia offers rental yields in the 3-5% range for quality apartments, with premium locations toward the lower end and emerging neighborhoods offering higher returns. The capital's strong rental market, driven by business travelers, expatriates, and domestic tenants, supports consistent occupancy rates.
Coastal cities like Varna and Burgas provide slightly higher yields of 4-6%, particularly for properties that can capture both long-term and short-term rental markets. The tourism potential adds an additional income layer for property owners.
Regional cities often offer the highest gross yields, sometimes exceeding 6%, though with potentially lower capital appreciation and more limited rental markets. These markets appeal to yield-focused investors willing to accept slower price growth.
The combination of robust yields and rising property prices continues to drive strong investor demand, as buyers can achieve both income and capital appreciation simultaneously. It's something we develop in our Bulgaria property pack.
How have mortgage rates and lending conditions changed in Bulgaria?
Mortgage rates in Bulgaria have remained relatively low compared to other European countries, but lending conditions are tightening compared to pre-pandemic standards.
Bulgarian banks have maintained competitive mortgage rates despite rising interest rates elsewhere in Europe, helping to support continued property demand. However, financial institutions are implementing stricter borrower assessments and requiring larger down payments than in previous years.
Down payment requirements have increased, with most banks now requiring 20-30% for investment properties and 10-20% for primary residences, compared to lower requirements in previous years. Credit scoring and income verification have also become more stringent.
Despite tightening conditions, mortgage lending remains accessible compared to much of the European Union, particularly for buyers with stable employment and good credit histories. This relative accessibility continues to support property demand from domestic buyers.
Foreign buyers often face additional requirements and higher down payment thresholds, though financing remains available for qualified international purchasers with established EU banking relationships.
What do real estate professionals forecast for Bulgarian property prices over the next year?
Real estate agents and market analysts expect Bulgarian property prices to continue rising in major cities for at least another year, though growth rates may moderate somewhat from current levels.
Industry professionals anticipate continued price appreciation in Sofia, Varna, and other major markets, with annual growth rates potentially moderating to 10-15% from current levels of 15-25%. This moderation reflects growing affordability constraints and expected increases in new supply.
Ongoing urbanization trends and infrastructure development in Sofia, Plovdiv, and coastal regions support positive medium-term outlooks. Major cities are expected to maintain pricing power due to their economic fundamentals and limited land availability.
Some analysts warn that affordability constraints may begin to impact demand in 2026, particularly for first-time buyers and lower-income segments. However, continued foreign investment and high-income domestic demand are expected to support premium market segments.
The consensus view among real estate professionals is that Bulgaria's property market will remain in a growth phase through 2025, with price appreciation expected across all major cities and property types.
What government policies or EU factors could impact Bulgarian property values?
Bulgaria's anticipated Eurozone accession and potential euro adoption represent the most significant policy factors that could drive further property price appreciation.
The prospect of euro adoption is already fueling investor expectations of continued price growth, similar to trends observed in Croatia following its euro adoption. Currency stability and reduced exchange rate risk make Bulgarian properties more attractive to international investors.
No major property tax increases or real estate law changes have been announced for 2025, providing policy stability for the property market. However, ongoing discussions about rental sector regulation and potential capital gains tax reforms could impact future investment dynamics.
EU funding for infrastructure development and regional projects continues to support property values indirectly, particularly in cities and tourist areas benefiting from improved transportation and amenities. These investments enhance location attractiveness and drive long-term value appreciation.
It's something we develop in our Bulgaria property pack.
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.
Bulgarian property prices are experiencing unprecedented growth, driven by supply constraints, foreign investment, and economic fundamentals that support continued appreciation.
For investors considering the Bulgarian market, the combination of strong price momentum, attractive yields, and upcoming Eurozone accession creates a compelling investment environment, though careful market timing and location selection remain crucial for success.
Sources
- Bulgarian Properties - Significant Property Price Rise in Bulgaria 2024
- InvestRopa - Bulgaria Real Estate Market Trends
- Bulgarian Properties - Advice for Property Sellers
- InvestRopa - Average Apartment Price Bulgaria
- International Investment - Apartment Prices in Bulgaria 2025
- InvestRopa - Average Apartment Price per sqm Sofia
- Fakti.bg - House Prices in Bulgarian Cities
- Armenian Lawyer - Bulgaria Real Estate Investment
- Global Property Guide - Bulgaria Price History
- Videliv - Bulgaria Real Estate Market 2025