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Everything you need to know before buying real estate is included in our Bulgaria Property Pack
Bulgarian property prices have experienced remarkable growth, with values surging 46% over the past five years. As of September 2025, the Bulgarian real estate market continues to show strong momentum, driven by record tourism, EU integration prospects, and historically low mortgage rates at 2.74%.
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.
Bulgarian property prices rose 46.5% from 2020 to 2025, with Sofia averaging €1,980 per square meter, while coastal cities like Varna and Burgas show strong tourist-driven demand.
Record tourism of 13 million visitors in 2024, low mortgage rates at 2.74%, and anticipated eurozone entry continue driving price growth, though demographic decline poses long-term challenges.
| City | Average Price per m² (2025) | 5-Year Growth |
|---|---|---|
| Sofia | €1,980-2,250 | ~50% |
| Plovdiv | €1,150-1,500 | ~45% |
| Varna | €1,550-2,500 | ~55% |
| Burgas | €1,200-2,000 | ~48% |
| Rental Yields | 4.3%-5.2% | Slight decline |
| Mortgage Rates | 2.74% | Historic lows |
| Tourism Impact | 13M visitors | Record high |
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 over the past five years?
Bulgarian property prices have surged by 46.5% nationwide from 2020 to 2025, representing an average compound annual growth rate of nearly 8%.
The most dramatic acceleration occurred between 2023 and 2025, with annual growth peaking at 18.3% year-on-year in early 2025. Sofia's premium districts experienced even higher appreciation rates, while coastal properties in popular resort areas have essentially doubled in value since 2020.
This growth trajectory significantly outpaces neighboring countries in the region. Romania saw 35-40% increases during the same period, Greece experienced 30-35% growth, and Serbia recorded 32-38% appreciation. Bulgaria's property market has emerged as one of the fastest-growing in the European Union.
The price surge reflects multiple converging factors including EU integration prospects, record tourism levels, infrastructure improvements, and historically low mortgage rates. Sofia leads the charge with the highest absolute values, while coastal cities benefit from intense tourist demand.
It's something we develop in our Bulgaria property pack.
What are the current average property prices per square meter in major Bulgarian cities?
As of September 2025, Bulgarian property prices vary significantly across major cities, with Sofia commanding the highest values and secondary cities offering more affordable entry points.
| City | Average Price per m² | Price Range |
|---|---|---|
| Sofia | €1,980 | €1,980-2,250 |
| Plovdiv | €1,150 | €1,150-1,500 |
| Varna | €1,550 | €1,550-2,500 |
| Burgas | €1,200 | €1,200-2,000 |
| Bansko (Resort) | €1,800 | €1,600-2,200 |
| Sunny Beach | €1,650 | €1,400-2,100 |
| Borovets | €1,750 | €1,500-2,000 |
Sofia maintains its position as Bulgaria's most expensive property market, reflecting its status as the economic and political center. The capital's central districts and business areas command premium prices, with luxury developments reaching €2,250 per square meter.
Coastal cities Varna and Burgas show significant price variations depending on proximity to beaches and tourist amenities. Varna's upper range reflects waterfront properties and resort developments, while Burgas offers more moderate pricing for residential areas.
How many new residential building permits were issued in Bulgaria recently?
Bulgaria issued 2,084 residential building permits in Q1 2025, representing a 14.3% increase compared to the same period in 2024.
The Q2 2025 permits continued this upward trend with a 5.9% year-on-year increase. For the full year 2024, approximately 7,500-8,000 residential building permits were issued, slightly lower than the previous year due to supply constraints and limited availability of development sites.
The permit increase indicates growing developer confidence and demand for new construction. However, the relatively modest numbers reflect ongoing challenges in the construction sector, including labor shortages, rising material costs, and lengthy approval processes.
Most new permits concentrate in Sofia and major coastal areas, where demand remains strongest. Developers prioritize premium projects over affordable housing, contributing to supply-demand imbalances in the entry-level market.
Supply constraints continue to support price growth as demand consistently outpaces new construction deliveries across Bulgaria's major markets.
What is the current level of foreign investment in Bulgarian real estate?
Foreign investment in Bulgarian real estate remains stable to slightly rising as of September 2025, with particular strength in resort areas and major cities.
EU accession, Schengen integration prospects, and infrastructure upgrades continue driving international investor interest. The anticipated eurozone entry adds another layer of appeal for foreign buyers seeking exposure to European property markets.
Key foreign investor groups include UK, German, Romanian, and Russian buyers, though composition has shifted due to geopolitical factors. EU citizens benefit from simplified purchase procedures, while non-EU investors face additional requirements but maintain strong interest.
Resort properties along the Black Sea coast attract significant foreign investment for both holiday homes and rental income purposes. Sofia's commercial and residential sectors also draw international capital, particularly from neighboring countries.
Domestic investment is simultaneously growing as Bulgarian citizens benefit from rising incomes and low mortgage rates. This dual demand from foreign and domestic sources creates sustained upward pressure on prices.
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How do current property listings compare to last year?
Property listings in Bulgaria are lower in 2025 compared to last year, as demand continues to outpace available supply across major markets.
The Bulgarian property market remains highly active with intense buyer competition, but tight supply persists in the most desirable areas. New construction deliveries cannot keep pace with demand, particularly for quality properties in prime locations.
Sofia experiences the most severe supply constraints, with premium properties often selling within weeks of listing. Coastal areas show similar patterns during peak tourism seasons, when international buyers compete aggressively for available inventory.
This supply-demand imbalance creates favorable conditions for sellers and supports continued price appreciation. Properties in secondary cities show more balanced inventory levels, though quality options remain limited.
The reduced listing inventory reflects both strong sales activity and developers' reluctance to release properties at current price levels, anticipating further appreciation.
What are the current rental yields in Bulgarian cities?
Bulgarian rental yields as of September 2025 range from 4.26% in Sofia to 5.15% in Burgas, showing slight declines year-on-year due to faster price growth versus rent increases.
| City | Gross Rental Yield (2025) | Rental Market Strength |
|---|---|---|
| Sofia | 4.26% | High demand, stable |
| Plovdiv | 4.70% | Growing market |
| Varna | 5.06% | Tourist-driven peaks |
| Burgas | 5.15% | Strong seasonal demand |
| Bansko | 6.50% | Ski season peaks |
| Sunny Beach | 7.20% | Summer tourist hotspot |
| Borovets | 6.80% | Year-round resort appeal |
Coastal and resort areas generate higher yields through short-term tourist rentals, with Sunny Beach and ski resorts like Bansko offering the most attractive returns. These areas benefit from Bulgaria's record tourism numbers and growing international recognition.
Sofia's lower yield reflects higher property values relative to rental income, but offers stability and year-round demand from business travelers, expatriates, and students. The capital's rental market remains robust with consistent occupancy rates.
It's something we develop in our Bulgaria property pack.
What are current Bulgarian mortgage rates and lending conditions?
Bulgarian mortgage interest rates currently average 2.74% as of September 2025, representing historic lows that significantly support property market demand.
Banks maintain stable to slightly loosening lending criteria, with housing loan volumes continuing to grow throughout 2025. This accommodative lending environment enables more buyers to enter the market and supports higher property values.
The low rate environment results from European Central Bank policies and Bulgaria's stable economic performance. Banks view real estate lending favorably given strong collateral values and growing property market fundamentals.
Loan-to-value ratios typically range from 70-85% for residential properties, with higher ratios available for Bulgarian citizens and EU residents. Foreign buyers may face additional requirements but still access competitive financing options.
The combination of low rates and available credit creates favorable conditions for both owner-occupiers and investors, contributing to sustained demand pressure in Bulgarian property markets.
How do Bulgaria's economic indicators impact housing demand?
Bulgaria's inflation rate of 3.4% as of July 2025 and GDP growth of 3.1% year-on-year in Q2 2025 create favorable conditions for continued housing demand.
The 3.1% GDP growth represents the highest rate in the region, supporting employment levels and household income growth. This economic expansion enables more Bulgarians to afford property purchases and drives domestic demand.
Moderate inflation levels indicate economic stability without excessive price pressures that could damage purchasing power. The controlled inflation environment supports central bank policies that keep mortgage rates low.
Rising incomes combined with historically low borrowing costs create optimal conditions for property market participation. Economic forecasts suggest continued moderate growth and stable inflation, supporting sustained housing demand.
Bulgaria's economic performance attracts both domestic and foreign investment, contributing to property market momentum and supporting price appreciation across major cities.
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.
How does tourism affect Bulgarian property demand?
Bulgaria welcomed a record 13 million visitors in 2024, creating exceptional demand for holiday properties and driving significant price appreciation in resort areas.
The tourism boom particularly impacts Black Sea coastal properties, where prices have risen 25-30% in top resort destinations. Popular areas like Sunny Beach, Golden Sands, and Sozopol experience intense competition for quality properties.
Short-term rental yields in tourist areas remain robust, with many properties generating 6-8% gross returns during peak seasons. This attracts both foreign and domestic investors seeking rental income opportunities.
Ski resorts like Bansko and Borovets also benefit from growing winter tourism, supporting year-round property demand and rental income potential. These mountain destinations attract international buyers seeking alpine lifestyle properties.
Tourism growth supports local economies, employment levels, and infrastructure development, creating positive feedback loops that enhance property values in tourism-dependent regions.
What government policies and tax changes could affect the market?
No major real estate tax increases are planned for 2025, though municipalities may update property tax base assessments and enhance local tax autonomy.
The Bulgarian government continues supporting foreign investment through favorable policies and streamlined procedures for EU citizens. Planned infrastructure improvements and EU integration initiatives further support market growth.
Green building standards and energy efficiency requirements are being enhanced, potentially affecting new construction costs but improving long-term property values. These policies align with EU environmental objectives.
Forthcoming property tax updates under consideration could affect holding costs, though significant changes appear unlikely given the government's pro-growth stance. Local municipalities retain discretion over specific tax rates and assessments.
Continued incentives for new construction and foreign investment suggest government policy will remain supportive of real estate market growth throughout 2025 and beyond.
What demographic trends are shaping Bulgarian property demand?
Bulgaria faces ongoing population decline due to emigration and low birth rates, particularly affecting rural areas, though urbanization trends partially offset these challenges.
The working-age population continues shrinking, creating long-term headwinds for property demand in smaller cities and rural regions. However, major urban centers like Sofia continue attracting internal migration.
Return migration among Bulgarians working abroad provides some demographic support, though numbers remain insufficient to offset overall population losses. EU membership facilitates both emigration and return patterns.
Urbanization trends concentrate population in major cities, supporting property demand in Sofia, Plovdiv, and coastal areas while weakening rural property markets. This geographic rebalancing affects regional price dynamics.
Foreign residents and EU citizens relocating to Bulgaria provide additional demand sources, particularly in lifestyle destinations and major business centers. These demographic shifts create varied market conditions across different regions.
How do Bulgarian property prices compare to neighboring countries?
Bulgaria has outpaced neighboring countries in property price growth from 2020 to 2025, though absolute price levels remain below Western European averages.
| Country | 5-Year Price Growth (2020-2025) | Market Characteristics |
|---|---|---|
| Bulgaria | 46.5% | Fastest growth, EU integration |
| Romania | 35-40% | Strong growth, higher base prices |
| Greece | 30-35% | Recovery from crisis, tourism |
| Serbia | 32-38% | Economic growth, Belgrade focus |
| North Macedonia | 25-30% | Modest growth, stability |
| Turkey | Variable | Currency volatility impacts |
| Croatia | 40-45% | Eurozone entry, tourism |
Bulgaria's exceptional growth reflects EU membership benefits, tourism boom, and infrastructure improvements. Despite rapid appreciation, Bulgarian properties remain attractive relative to Western European markets.
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 likely to continue rising in 2025-2026, supported by record tourism, EU integration prospects, and historically low mortgage rates, though demographic challenges and supply constraints may moderate long-term growth.
The combination of strong economic fundamentals, infrastructure improvements, and international investment interest creates favorable conditions for property appreciation, making Bulgaria an attractive destination for both investment and lifestyle purchases.
Sources
- InvestRopa - Bulgaria Price Forecasts
- InvestRopa - Average Apartment Prices Bulgaria
- BTA - Building Permits Bulgaria
- SeeNews - Foreign Investment Bulgaria
- Global Property Guide - Bulgaria Rental Yields
- The Global Economy - Bulgaria Mortgage Rates
- Trading Economics - Bulgaria Inflation
- Trading Economics - Bulgaria GDP Growth
- Wikipedia - Tourism in Bulgaria
- Numbeo - Property Investment Rankings