Authored by the expert who managed and guided the team behind the Bulgaria Property Pack
Yes, the analysis of Sofia's property market is included in our pack
Sofia's property market has been one of the most talked-about in Southeast Europe, and if you're thinking about buying here, you're probably wondering whether you've missed the boat or if there's still opportunity ahead.
In this article, we break down the current housing prices in Sofia, look at where the market is heading, and give you the data you need to make a confident decision.
We constantly update this blog post to reflect the latest market conditions and official statistics.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Sofia.
So, is now a good time?
Rather yes, Sofia in January 2026 still offers decent fundamentals for buyers who choose carefully, but it's no longer the "easy money" market it was a few years ago.
The strongest signal is that official NSI data shows Sofia prices rose 5.3% in just one quarter (Q3 2025), meaning demand is still outpacing supply in the city.
Another strong signal is that homes in Sofia sell in about 28 days on average, which tells us buyers are still competing and good properties don't sit on the market.
Supporting signals include low mortgage rates (around 2.8%), Bulgaria's recent euro adoption boosting confidence, and Sofia's population continuing to grow as it attracts workers from across the country.
The best strategy right now is to focus on well-connected neighborhoods like Lozenets, Ivan Vazov, or Iztok for apartments, or Boyana and Dragalevtsi for houses, and prioritize properties near metro stations or major employment hubs.
This is not financial or investment advice, and we don't know your personal situation, so please do your own research before making any property decisions.
Is it smart to buy now in Sofia, or should I wait as of 2026?
Do real estate prices look too high in Sofia as of 2026?
As of early 2026, Sofia property prices are running about 10% to 15% above what income and rent fundamentals would suggest as "fair value," which means the market is warm but not dramatically overheated.
One clear on-the-ground signal is that homes in Sofia sell in roughly 28 days on average, which is fast and suggests buyers still feel urgency rather than hesitation about current price levels.
Another signal worth noting is that listing portals like Imot.bg show asking prices in prime neighborhoods like Lozenets exceeding 2,500 euros per square meter, yet these units still move quickly, indicating genuine demand rather than wishful seller pricing.
You can also read our latest update regarding the housing prices in Sofia.
Does a property price drop look likely in Sofia as of 2026?
As of early 2026, the likelihood of a meaningful property price drop in Sofia over the next 12 months is low, with no obvious trigger like forced selling, credit shock, or massive oversupply visible in the data.
We estimate a plausible price change range for Sofia in 2026 between minus 5% (if rates spike or the economy stumbles) and plus 8% (if euro adoption sentiment and credit keep flowing), with flat to modest gains being the most likely outcome.
The single most important factor that could increase the odds of a price drop in Sofia is a sharp rise in mortgage interest rates, which would squeeze affordability for the many buyers who rely on debt to purchase.
However, this rate spike scenario looks unlikely in the near term because Bulgaria just joined the euro zone and the European Central Bank has been signaling stable policy, meaning borrowing costs should remain manageable for most Sofia buyers.
Finally, please note that we cover the price trends for next year in our pack about the property market in Sofia.
Could property prices jump again in Sofia as of 2026?
As of early 2026, the likelihood of a renewed price surge in Sofia is medium, because while fundamentals are supportive, the easy gains have likely been captured and buyers are now more price-sensitive.
We estimate a plausible upside range for Sofia prices over the next 12 months of around 5% to 10%, concentrated mainly in neighborhoods benefiting from new metro access or close to major employment centers.
The single biggest demand-side trigger that could push Sofia prices higher is cheaper euro-denominated financing expectations combined with continued strong wage growth, which would bring more buyers into the market at higher budgets.
Please also note that we regularly publish and update real estate price forecasts for Sofia here.
Are we in a buyer or a seller market in Sofia as of 2026?
As of early 2026, Sofia remains a seller-leaning market because demand continues to outpace available supply, though it's not as aggressive as it was at the peak of 2024.
The estimated months-of-inventory in Sofia sits at roughly 1.5 to 2 months for well-located properties, which is well below the 4 to 6 months typically associated with a balanced market where buyers and sellers have equal leverage.
The share of listings with price reductions in Sofia appears limited based on portal observations, suggesting sellers still feel confident enough to hold their asking prices rather than chase buyers with discounts.
Are homes overpriced, or fairly priced in Sofia as of 2026?
Are homes overpriced versus rents or versus incomes in Sofia as of 2026?
As of early 2026, Sofia homes appear mildly overpriced when measured against local rents and incomes, but not dramatically so, especially for dual-income households or buyers targeting rental yield.
The estimated price-to-rent ratio in Sofia sits around 14 to 18, meaning you would need roughly 14 to 18 years of rent to pay off a purchase price, which is stretched but still better than most Western European capitals where ratios often exceed 25.
The estimated price-to-income multiple in Sofia for a typical 70-square-meter apartment is about 3.5 times gross household income for a two-earner family, which is manageable, though single earners will find affordability much more challenging.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Sofia.
Are home prices above the long-term average in Sofia as of 2026?
As of early 2026, Sofia property prices are clearly above their long-term average, sitting roughly 40% to 50% higher in nominal terms than the pre-pandemic 2019 baseline after years of sustained growth.
The estimated recent 12-month price change in Sofia is around 15% to 18% year-on-year, which is significantly faster than the pre-pandemic pace of 5% to 8% annually and suggests the market is running hot by historical standards.
When adjusted for inflation, Sofia property prices are near or slightly above their prior cycle peak, meaning buyers today are paying premium valuations compared to most of the last two decades.
What local changes could move prices in Sofia as of 2026?
Are big infrastructure projects coming to Sofia as of 2026?
As of early 2026, the biggest infrastructure project likely to impact Sofia property prices is the Sofia Metro Line 3 expansion, which is expected to boost values by 5% to 15% in neighborhoods gaining new station access like Slatina, Geo Milev, and areas toward Sofia Tech Park.
The timeline for Sofia Metro Line 3 shows construction already underway with EU funding secured, and full delivery of key segments expected within the next two to four years, making this a near-term catalyst rather than a distant promise.
For the latest updates on the local projects, you can read our property market analysis about Sofia here.
Are zoning or building rules changing in Sofia as of 2026?
The most important zoning change being discussed in Sofia involves amendments to the Municipality of Sofia Planning and Development Act, which could affect density limits and permitting timelines across several districts.
As of early 2026, the net effect of these likely zoning changes on Sofia prices is uncertain, but if they unlock more high-density construction in outer corridors, that could cap price growth in those areas while supporting values in inner neighborhoods where supply remains constrained.
The areas most affected by these planning rule changes in Sofia are likely to be the Ring Road corridors and peripheral zones like Mladost and Lyulin, where new development potential is highest.
Are foreign-buyer or mortgage rules changing in Sofia as of 2026?
As of early 2026, there are no major foreign-buyer restrictions being implemented in Sofia, but mortgage rules could tighten as regulators watch the rapid 27% year-on-year growth in housing loans and consider borrower-based limits.
The most likely mortgage rule change being considered in Sofia involves potential loan-to-value or debt-service-to-income caps, which the European Central Bank has documented as available tools in Bulgaria's regulatory framework.
If implemented, such mortgage tightening could cool demand by 5% to 10% at the margin, though it would likely be phased in gradually rather than imposed as a sudden shock to Sofia's property market.
You can also read our latest update about mortgage and interest rates in Bulgaria.
Will it be easy to find tenants in Sofia as of 2026?
Is the renter pool growing faster than new supply in Sofia as of 2026?
As of early 2026, renter demand in Sofia is growing roughly in line with new rental supply, which means the market is balanced enough to find tenants but not so tight that landlords can charge whatever they want.
The strongest signal of renter demand in Sofia is continued internal migration toward the capital, with Sofia attracting workers from across Bulgaria thanks to its concentration of IT, finance, and professional services jobs paying significantly above the national average.
On the supply side, NSI data shows Sofia issued about 230 residential building permits covering roughly 3,000 planned dwellings in Q3 2025 alone, indicating a healthy but not overwhelming pipeline of new units coming to market.
Are days-on-market for rentals falling in Sofia as of 2026?
As of early 2026, rental days-on-market in Sofia appears stable to slightly falling in prime neighborhoods, with well-located apartments near metro stations or employment centers typically finding tenants within two to three weeks.
The difference in rental absorption between Sofia's best areas like Lozenets, Ivan Vazov, and Oborishte versus weaker peripheral zones can be substantial, with prime rentals moving in half the time of comparable units in far-out districts like Lyulin or Nadezhda.
One common reason rental days-on-market falls in Sofia is seasonal demand from university students and young professionals relocating in September, which creates predictable rental spikes that landlords can time their listings around.
Are vacancies dropping in the best areas of Sofia as of 2026?
As of early 2026, vacancy rates in Sofia's best rental areas like Lozenets, Ivan Vazov, Oborishte, and Iztok appear to be low and stable, with strong tenant demand keeping quality units occupied.
We estimate vacancies in these prime Sofia neighborhoods run around 2% to 4%, compared to citywide averages that may reach 5% to 8% in areas with lots of similar new-build competition.
One practical sign that Sofia's best areas are tightening first is when landlords in Lozenets or Iztok start receiving multiple tenant inquiries within days of listing, allowing them to select tenants rather than negotiate concessions.
By the way, we've written a blog article detailing what are the current rent levels in Sofia.
Am I buying into a tightening market in Sofia as of 2026?
Is for-sale inventory shrinking in Sofia as of 2026?
As of early 2026, we cannot confirm exact year-over-year inventory changes for Sofia because Bulgaria lacks a centralized public listing count, but market behavior suggests effective inventory for quality properties is tight.
The best proxy for months-of-supply in Sofia is the fast selling time of around 28 days, which implies roughly 1 to 2 months of inventory for desirable units, well below the 4 to 6 months associated with a balanced market.
One likely reason inventory feels tight in Sofia is that existing homeowners with low-rate mortgages have little incentive to sell and trade up, keeping turnover lower than it might otherwise be.
Are homes selling faster in Sofia as of 2026?
As of early 2026, the median time-to-sell for homes in Sofia is approximately 28 days according to the most recent public snapshot, which represents fast turnover and suggests the market has not meaningfully slowed from its recent pace.
Year-over-year, selling times in Sofia appear relatively stable, with no clear evidence of a dramatic speedup or slowdown compared to mid-2024, indicating sustained buyer interest despite higher prices.
Are new listings slowing down in Sofia as of 2026?
As of early 2026, we are not confident in precise year-over-year new listing figures for Sofia because Bulgaria lacks a centralized MLS system, but permit data suggests the construction pipeline remains active rather than collapsing.
Sofia typically sees stronger listing activity in spring and early fall, with winter months like January traditionally slower, so current levels should be interpreted in that seasonal context rather than as a sign of structural decline.
One plausible reason new listings may feel constrained in Sofia is that many homeowners locked in attractive mortgage rates in recent years and see little reason to sell and lose that financing advantage.
Is new construction failing to keep up in Sofia as of 2026?
As of early 2026, new construction in Sofia is keeping pace with demand in aggregate terms, but supply is concentrated in peripheral areas while inner neighborhoods face persistent undersupply due to land and permitting constraints.
NSI data shows Sofia issued around 230 residential building permits covering approximately 3,000 planned dwellings in Q3 2025, which represents healthy pipeline activity but not enough to dramatically shift the supply-demand balance.
The biggest bottleneck limiting new construction in central Sofia is land availability and permitting complexity, which forces most new development to the outskirts where competition with existing stock becomes more intense.
Will it be easy to sell later in Sofia as of 2026?
Is resale liquidity strong enough in Sofia as of 2026?
As of early 2026, resale liquidity in Sofia is strong for well-located properties priced realistically, with most quality apartments and houses finding buyers within one to two months.
The median days-on-market for resale homes in Sofia sits around 28 days for desirable units, which compares favorably to a "healthy liquidity" benchmark of 30 to 60 days and suggests sellers can exit without prolonged waiting.
The property characteristics that most improve resale liquidity in Sofia are proximity to metro stations, modern building condition, and location in established neighborhoods like Lozenets, Ivan Vazov, or Oborishte where buyer demand is deepest.
Is selling time getting longer in Sofia as of 2026?
As of early 2026, selling time in Sofia does not appear to be getting meaningfully longer compared to 2024 or early 2025, though some normalization from "very fast" to "normal" is expected as the market matures.
The current median days-on-market in Sofia is around 28 days, with a realistic range spanning from under two weeks for well-priced prime properties to 60 or more days for overpriced or poorly located listings.
One clear reason selling time could lengthen in Sofia going forward is affordability pressure, as price-to-income ratios stretch further and more buyers struggle to qualify for the mortgages they need.
Is it realistic to exit with profit in Sofia as of 2026?
As of early 2026, the likelihood of exiting with profit in Sofia is medium to high for buyers who hold for at least three to five years and choose their property carefully, but quick flips have become riskier as price growth normalizes.
The minimum holding period in Sofia that most often makes exiting with profit realistic is around three to four years, which gives enough time for price appreciation to overcome transaction costs and market fluctuations.
Total round-trip costs in Sofia (buying plus selling) typically run around 8% to 12% of the property value, which translates to roughly 12,000 to 18,000 euros on a typical 150,000 euro apartment, or about 12,000 to 18,000 USD at current exchange rates.
The factor that most increases profit odds in Sofia is buying in neighborhoods with durable demand anchors like metro access, proximity to employment centers, or locations in established districts such as Lozenets, Ivan Vazov, Iztok, Boyana, or Dragalevtsi.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Sofia, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| National Statistical Institute (NSI) | Bulgaria's official statistics agency publishing the country's house price data. | We anchored Sofia's price momentum (quarterly and yearly changes) on this source. We treat it as the ground truth for direction and pace. |
| BTA (Bulgarian Telegraph Agency) | Bulgaria's national news agency reporting official data with clear attribution. | We used it to anchor price-per-square-meter levels and selling time snapshots. We combined it with NSI data to translate percentage changes into euro amounts. |
| Imot.bg | One of Bulgaria's largest property portals with transparent methodology notes. | We mapped neighborhood price dispersion and validated asking price levels. We treat these as asking prices and apply appropriate discounts. |
| Bulgarian National Bank (via BTA) | Central bank data on housing loan growth reported through official channels. | We measured demand heat through credit growth rates. We used it as an early warning indicator for overheating risk. |
| Global Property Guide | Compiles BNB mortgage rate data in a clear, accessible time series format. | We estimated current borrowing costs and modeled rate sensitivity scenarios. We used it to assess how rate changes might affect buyer demand. |
| European Commission | Official EU page documenting funded infrastructure projects with scope and budget. | We identified infrastructure catalysts that could move neighborhood demand. We used it to map likely benefit zones for prices and rents. |
| Reuters | Top-tier global news wire providing factual event reporting. | We anchored the euro adoption timeline and sentiment context. We used it mainly as a background driver rather than a direct price factor. |
| FRED (St. Louis Fed) | Transparent long-run macro time series sourced from the Bank for International Settlements. | We compared today's cycle to prior cycles to assess historical positioning. We used it for long-horizon context rather than neighborhood detail. |
| European Systemic Risk Board (ESRB) | EU authority specifically focused on housing bubbles and financial stability risks. | We framed crash likelihood from a financial stability perspective. We used it as a sanity check against purely local narratives. |
| IMF | Top-tier international institution with standardized country surveillance methodology. | We sourced macro fundamentals like growth, inflation, and risk signals. We also checked for any housing or credit overheating warnings. |
| Colliers | Major global real estate consultancy with standardized research practices. | We used it for product-level detail that official statistics don't cover, like house compounds and suburban patterns. We also sourced typical buyer budget ranges. |
| Sofia Municipality | Official municipal government communication on planning rules and regulations. | We assessed whether zoning changes could unlock or restrict new supply. We flagged policy-driven supply shocks before they appear in construction data. |
| Imot.bg Rentals | Large local portal with transparent methodology for rental price averages. | We estimated rental yields and tenant demand by neighborhood. We used it as a directional indicator for vacancies and rent momentum. |
| Bulgarian Properties | Long-established local brokerage providing concrete price ranges and market mechanics. | We triangulated what buyers are actually paying attention to in terms of pricing bands. We cross-checked their figures against NSI and portal data. |
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