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 real estate market is experiencing its strongest growth phase in years, with property prices surging across major cities and regional centers alike. As of mid-2025, the market shows robust fundamentals driven by economic stability, EU membership benefits, and increasing demand from both domestic buyers and foreign investors seeking affordable European property with solid rental yields.
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 real estate market shows strong momentum with property prices rising 8-18% annually across major cities, with regional centers leading growth at over 20% year-on-year.
New build apartments in Sofia, Varna, and Burgas offer the best investment potential, while short-term rentals in tourist areas consistently outperform long-term rentals with yields reaching up to 12%.
| City | Average Price/m² (€) | Annual Growth (%) | Long-Term Yield (%) | Short-Term Yield (%) | Best Property Type |
|---|---|---|---|---|---|
| Sofia | 1,980–2,225 | 14–16 | 4.2–4.6 | 7–12 | New build apartment |
| Plovdiv | 1,150–1,328 | 6–7 | 4.7–5.5 | Up to 18 | Student apartment |
| Varna | 1,550–1,676 | 14–16 | 5.1–5.8 | Up to 12 | Coastal apartment |
| Burgas | 1,200–1,300 | 14–16 | 5.1–5.3 | 5–7 | Coastal apartment |
| Bansko | 1,100–1,500 | 8–10 | 4–6 | Up to 11 | Ski resort apartment |
Fact-checked and reviewed by our local expert
Yeheli Samuels 🇧🇬🇮🇱
CEO and Founder, Dira Bulgarit - Israeli real estate in Bulgaria
What's the average price per square meter in Bulgaria right now, and how has it changed over the past 12 months?
Bulgaria's residential property market shows strong price momentum across all major cities as of June 2025.
The national average for apartments sits at €1,560–€1,600 per square meter, but this figure masks significant regional variations. Sofia leads the market with prices ranging from €1,980–€2,225 per square meter, reflecting its status as the capital and economic center. Varna follows at €1,550–€1,676 per square meter, benefiting from its coastal location and tourist appeal.
Plovdiv offers more affordable entry points at €1,150–€1,328 per square meter, while Burgas maintains competitive pricing at €1,200–€1,300 per square meter. Regional centers like Vidin, Kyustendil, Lovech, and Sliven have experienced the most dramatic growth, with prices surging over 20% year-on-year for the second consecutive year.
The 12-month price trajectory shows robust growth across the board. Sofia, Varna, and Burgas have all recorded 14–16% annual increases, while Plovdiv has seen more moderate growth at 6–7%. This represents a significant acceleration from previous years, driven by increased demand from both domestic buyers and foreign investors.
It's something we develop in our Bulgaria property pack.
Which cities or regions in Bulgaria are seeing the fastest growth in property prices currently?
Regional centers are experiencing the most explosive price growth in Bulgaria's current market cycle.
Cities like Vidin, Kyustendil, Lovech, and Sliven are leading the charge with annual price increases exceeding 20%. This growth represents a catch-up effect as these previously undervalued markets benefit from improved infrastructure, better connectivity to major cities, and increased investor attention seeking value opportunities.
Among major cities, Sofia, Varna, and Burgas maintain strong momentum with 14–16% annual growth. These cities benefit from sustained demand driven by urbanization, economic development, and tourism. Black Sea resort areas including Sunny Beach, St. Vlas, and Nessebar are also experiencing significant appreciation, particularly for new builds and properties with modern amenities.
Mountain resort destinations like Bansko and Razlog continue to attract investment, with growth rates of 8–10% annually. The ski tourism sector drives demand in these areas, especially for properties suitable for short-term rentals. Plovdiv, while growing at a more moderate 6–7% pace, maintains steady appreciation due to its cultural significance and university presence.
How do short-term rental yields compare to long-term rental yields across major Bulgarian cities?
| City | Long-Term Yield (%) | Short-Term Yield (%) | Best Areas for Short-Term Rentals |
|---|---|---|---|
| Sofia | 4.2–4.6 | 7–12 | Serdika, Oborishte, Vitosha districts |
| Plovdiv | 4.7–5.5 | Up to 18 | Student areas, cultural districts |
| Varna | 5.1–5.8 | Up to 12 | Coastal areas, city center |
| Burgas | 5.1–5.3 | 5–7 | Tourist zones, port area |
| Bansko | 4–6 | Up to 11 | Ski resort vicinity, new developments |
What types of properties—apartments, houses, new builds, or older stock—are most in demand right now?
New build apartments dominate demand across Bulgaria's major markets in 2025.
Buyers consistently prefer newly constructed properties due to modern amenities, energy efficiency standards, and smart home features. New builds in Sofia have recorded 20% annual price increases, significantly outpacing older stock. Two to three-bedroom apartments in urban centers represent the sweet spot for both owner-occupiers and investors.
Houses are gaining traction, particularly suburban and family homes with outdoor space near major cities. This trend reflects changing lifestyle preferences post-pandemic, with buyers seeking more space and better work-from-home environments. Vacation homes in coastal and mountain resort areas maintain strong demand, especially properties with proven rental potential.
Older stock faces challenges unless located in prime areas or recently renovated. Properties requiring significant renovation work struggle to compete with new builds unless priced attractively. The market clearly favors move-in-ready properties with modern standards over fixer-upper opportunities.
It's something we develop in our Bulgaria property pack.
Don't lose money on your property in Bulgaria
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How do real estate trends differ between Sofia, Plovdiv, Varna, Burgas, and the countryside or mountain resorts?
Each Bulgarian region exhibits distinct market characteristics reflecting local economic drivers and buyer preferences.
Sofia maintains its position as the premium market with the highest prices and strongest growth fundamentals. The capital benefits from tech sector expansion, urbanization trends, and new development projects. Demand centers on new build apartments in well-connected areas, with rental demand driven by business travelers and urban professionals.
Plovdiv offers stability and cultural appeal with moderate price growth of 6–7% annually. The city's university presence creates consistent rental demand from students, while its designation as a cultural capital attracts both residents and tourists. Properties in central and student areas perform best for rental income.
Varna and Burgas leverage their coastal positions for tourism-driven growth. Both cities show 14–16% annual appreciation, with strong demand for apartments suitable for short-term rentals. The expat community in Varna provides additional rental demand, while Burgas benefits from its port city status and business activities.
Countryside markets offer affordability but slower growth, appealing to lifestyle buyers and rural tourism investors. Mountain resorts like Bansko focus on seasonal tourism, with ski resort properties commanding premium prices during winter months.
What are the current mortgage interest rates in Bulgaria, and how are they expected to evolve in the next 6–12 months?
Bulgarian mortgage rates remain competitive by European standards as of mid-2025.
Fixed-rate mortgages for 3–5 year terms currently range from 3.4–3.7%, while variable rates after the fixed period typically settle around 2.8%. Banks generally offer lending rates around 4.4%, with long-term government bond rates at 3.93% providing a benchmark for market conditions.
Mortgage availability remains strong with up to 80% loan-to-value ratios available for both Bulgarian residents and foreign buyers. Local banks have maintained lending standards while competing for market share, creating favorable conditions for qualified borrowers.
The outlook for the next 6–12 months suggests stable or slightly rising rates. Economic stability and Bulgaria's eurozone membership provide confidence, but global interest rate trends may exert upward pressure. However, any increases are expected to be modest, keeping rates at historically attractive levels for property investors.
How much upfront investment is typically needed for buying property for living, renting, or reselling?
Total upfront costs vary significantly by location and property condition, requiring careful budget planning.
Purchase prices form the largest component, ranging from €2,000–€3,500 per square meter in central Sofia to €1,200–€2,000 per square meter in Plovdiv, Varna, and Burgas. Countryside and mountain properties offer entry points from €400–€1,500 per square meter.
Transaction costs add 6–10% to the purchase price through various fees and taxes. Transfer tax ranges from 2.5–3% of the purchase price, while notary and registration fees typically add 1–1.5%. Real estate agent commissions average 3% for buyers, and legal fees range from €500–€1,500 depending on complexity.
Renovation costs can significantly impact total investment, particularly for older properties. Budget €10,000–€30,000 or more for comprehensive renovations depending on property size and condition. For a typical Sofia two-bedroom apartment (70 square meters), total upfront investment ranges from €155,000–€285,000 including purchase price, fees, and potential renovation costs.
Are there any new real estate regulations, taxes, or government incentives that buyers or investors should be aware of in 2025?
Bulgaria maintains a relatively investor-friendly regulatory environment with several beneficial incentives.
1. **Property tax rates remain low at 0.15–0.32% of cadastral value, typically 50–70% of market value**2. **Rental income tax applies at a flat 10% rate for all rental income**3. **Capital gains tax of 10% applies only if property is sold within 3 years**4. **50% property tax rebate available for main residence owners**5. **Fast-track residency programs for investors with €300,000+ property investments**The government offers a 75% property tax reduction for individuals with reduced working capacity, while simplified procedures for foreign buyers have streamlined the purchase process. No major new restrictions affect short-term rentals, though local regulations may evolve in tourist areas.
Energy efficiency standards for new builds ensure compliance with EU directives, potentially affecting construction costs but improving long-term property value. Foreign buyers face no significant new restrictions, maintaining Bulgaria's appeal as an accessible European investment destination.
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 the main risks in the Bulgarian real estate market right now—economic, political, demographic, or otherwise?
Bulgarian real estate faces several manageable risks that investors should monitor closely.
Economic risks include potential inflation pressures and rising interest rates that could slow market activity. Overpriced listings in some segments may create correction pressure, though fundamentals remain strong. Currency risk has diminished with eurozone membership, providing stability for international investors.
Political stability remains generally strong, though elections and policy changes could impact investor confidence. The government's pro-business stance and EU membership provide institutional stability, but investors should monitor regulatory developments affecting property ownership and taxation.
Demographic challenges include population decline in rural areas, though urban centers continue growing. Seasonality affects tourist areas, creating income volatility for short-term rental investments. Potential oversupply in some segments requires careful market analysis before investment decisions.
Legal and administrative complexity can challenge non-EU buyers, particularly for land purchases. Local management requirements in tourist areas add operational considerations for absentee owners.
For someone looking to buy and rent out immediately, which areas offer the best combination of occupancy rate and ROI?
Varna leads Bulgarian cities for immediate rental investment opportunities with optimal risk-return profiles.
Varna achieves 57% average occupancy rates for short-term rentals with yields reaching up to 12% in prime locations. The city's coastal position, expat community, and lenient regulations create ideal conditions for rental investors. Central districts and waterfront properties command premium rates throughout the tourist season.
Sofia's central districts including Serdika, Oborishte, and Vitosha offer strong rental demand from business travelers and urban professionals. Occupancy rates of 45–55% combine with yields of 7–12% for well-positioned properties. The capital's year-round demand provides income stability compared to seasonal resort markets.
Bansko delivers excellent seasonal performance with yields up to 11% during ski season. However, investors must account for seasonal income patterns and higher management requirements. Plovdiv provides consistent returns of 5–7% from student and expat demand, while Burgas offers 5–6% yields with tourism and business demand drivers.
If I'm buying to resell in 2–5 years, what are the best-performing property types and locations with expected appreciation?
New build apartments in major urban centers offer the strongest appreciation potential for medium-term investors.
Sofia new developments, particularly in central and well-connected suburban areas, provide the best foundation for capital appreciation. The city's economic growth, tech sector expansion, and urbanization trends support sustained price increases. Focus on 2–3 bedroom apartments in emerging neighborhoods with good transport links.
Coastal properties in Varna and Burgas, especially new developments and tourist areas, benefit from continued tourism growth and expat demand. Black Sea resort properties with rental potential offer both income and appreciation opportunities.
Plovdiv central and cultural districts appeal to both residents and tourists, providing steady appreciation with lower volatility than resort markets. Bansko and Razlog ski resort properties, particularly new builds, capitalize on mountain tourism development and infrastructure improvements.
Avoid older stock requiring significant renovation unless purchased at substantial discounts. Suburban family homes near major cities represent emerging opportunities as lifestyle preferences shift toward larger living spaces.
It's something we develop in our Bulgaria property pack.
Based on current trends, what's the smartest way to position myself in the market now—what location, budget range, and property type fit best for living, renting out, or flipping?
Strategic positioning in Bulgaria's current market requires matching investment goals with specific market segments and locations.
For primary residence, budget €100,000–€250,000 for 2–3 bedroom apartments or small houses in Sofia suburbs, Varna, Plovdiv, or Burgas. New builds or recently renovated properties provide the best value and lifestyle benefits. Countryside or mountain resorts suit lifestyle buyers seeking nature and retirement destinations.
Rental investment requires €80,000–€200,000 for 1–2 bedroom apartments in high-demand areas. Target Sofia central districts, Varna coastal areas, Plovdiv student zones, Bansko ski resort, or Sunny Beach coastal resort. New builds in these locations provide optimal rental potential with minimal management issues.
Property flipping opportunities require €50,000–€150,000 for undervalued properties or fixer-uppers in emerging areas. Focus on Sofia suburbs with development potential, Varna/Burgas new development zones, Plovdiv cultural districts, or Bansko resort areas. Older apartments or houses requiring renovation in these locations offer the best value-add opportunities.
Success in each strategy requires thorough local market knowledge, proper due diligence, and realistic timeline expectations aligned with market cycles and personal investment goals.
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 real estate market in 2025 presents compelling opportunities across multiple segments, from high-growth regional centers to established urban markets with strong rental yields.
Success requires matching investment strategy with specific market conditions, whether targeting immediate rental income in tourist areas or long-term appreciation in major cities with new build developments.
Sources
- PropertyStar - Bulgaria House Prices
- Bulgarian Properties - Market Growth Report
- InvestRopa - Bulgaria Real Estate for Foreigners
- Novinite - Housing Prices in Major Cities
- BTA - Property Price Forecasts 2025
- Economic.bg - Northwestern Bulgaria Market
- Global Property Guide - Bulgaria Rental Yields
- InvestRopa - Bulgaria Real Estate Market Analysis
- UniCredit Bulbank - Market Report
- Integra Dom - Bulgaria Property Taxes 2025