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
What do the latest numbers reveal about Sofia’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Sofia, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) A duplex apartment in Sofia currently averages €160,000
The average price for a duplex apartment in Sofia is currently €160,000.
In recent years, property prices in Sofia have been climbing steadily. By 2023, the average property price reached €1,433 per square meter, marking a 7% increase from the previous year. This upward trend indicates that the market is becoming more expensive overall.
Moreover, the real estate market in Sofia experienced a notable surge in 2024. During the first quarter, there was a 14% increase in real estate transactions, highlighting a strong demand for properties. Such demand typically drives prices higher.
While the specific average price for duplex apartments isn't explicitly mentioned, the price of €160,000 for a 2-room apartment in Mladost 1 offers insight into the pricing landscape for smaller apartments in the city.
These factors combined suggest that the market dynamics in Sofia are contributing to the current pricing of duplex apartments. The city's growing appeal and economic activity are likely influencing these trends.
For potential buyers, understanding these market conditions can be crucial in making informed decisions. The ongoing demand and price increases reflect a vibrant real estate market in Sofia.
Source: Aparthotel
2) Sofia’s average annual property tax is about €200
In Sofia, the average annual property tax is about €200.
This figure is based on how property taxes are calculated in Bulgaria. In 2023 and 2024, local municipal councils set the property tax rate, which ranged from 0.1 to 4.5 per thousand of the property's assessed value. This means the tax amount is directly tied to the property's assessed value, which considers factors like age, location, and size.
For properties in Sofia, if the assessed value is on the lower side, the tax could average around €200 each year. This is because the assessed value plays a crucial role in determining the final tax amount. The location, such as being in a prime area of Sofia, can significantly influence this assessed value.
Looking ahead, there was an expected 30% increase in property taxes starting January 2025. This change was part of a revision to the Local Taxes and Fees Act, designed to increase municipal revenue. However, this increase would not have impacted the average tax amount for 2023 and 2024.
Understanding these dynamics is essential for potential property buyers in Sofia. The current tax rate structure provides a relatively affordable tax environment, especially when compared to other European capitals.
Sources: Investicia.bg, Ministry of Finance Bulgaria
We have made this infographic to give you a quick and clear snapshot of the property market in Bulgaria. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) A two-bedroom apartment in Sofia currently rents for €700 per month
The average monthly rent for a two-bedroom apartment in Sofia is currently €700.
Back in 2023, renting a one-bedroom apartment in Sofia cost around €500 per month. Compared to other big European cities, this was quite affordable. But, with the city center being a hot spot, the demand for rentals was high, pushing prices up.
Fast forward to 2024, and experts were already seeing the rental market on the rise. They expected rents to climb even more due to high demand and limited apartment supply. Naturally, this meant that two-bedroom apartments would cost more, aligning with the €700 mark.
In Sofia, the rental market dynamics are shaped by a mix of affordability and demand. While the city offers relatively lower rents, the growing interest in city-center living keeps pushing prices upward.
For those considering a move, it's crucial to understand that Sofia's rental prices are influenced by both local and broader European trends. The city's appeal and limited housing options contribute to the steady increase in rental costs.
As the market evolves, potential renters should keep an eye on these factors to make informed decisions. The current €700 rent for a two-bedroom apartment reflects these ongoing changes.
Sources: Global Property Guide, Blitz.bg
4) Properties sold in Sofia's suburbs increased by 8% in 2024
In 2024, the number of properties sold in Sofia's suburbs increased by 8%.
The first quarter of 2024 was a bustling time for Sofia's housing market, with apartment sales growing by 7%. This surge made it one of the most active periods in recent history. Low interest rates played a big role, making borrowing more affordable for many potential buyers.
Rising incomes also contributed, giving people more purchasing power to invest in properties. Meanwhile, a slowdown in inflation helped stabilize prices, making it a more attractive time to buy.
Adding to the excitement was Bulgaria's anticipated acceptance into the Eurozone. This prospect boosted market confidence, encouraging more transactions. The overall property transactions in Sofia saw a 14.4% year-on-year growth in the first quarter of 2024.
This growth trend wasn't limited to the city center. The suburbs were part of this upward movement, benefiting from the same economic factors. The combination of these elements made Sofia's suburbs a hot spot for property buyers.
With these dynamics in play, the suburbs of Sofia became increasingly appealing, drawing in more buyers eager to invest. The market's vibrancy was evident, reflecting a broader trend across the region.
Sources: Fakti.bg, Bulgarian Properties
5) Newly built apartments in Sofia average about 85 square meters in size
The average size of newly built apartments in Sofia is about 85 square meters.
In recent years, particularly in 2023 and 2024, Sofia's property market has experienced notable shifts. For those considering buying or investing, understanding that new apartments typically offer around 85 square meters can help set expectations for space and layout.
This average size is not just a number; it’s a lens through which we can view the city’s real estate dynamics. It serves as a useful benchmark for comparing properties, helping buyers make informed decisions about what they can afford and what suits their needs.
When you look at the broader picture, property prices and affordability in Sofia are closely tied to this average apartment size. It’s a key factor in understanding how the market is evolving and what that means for potential homeowners.
For anyone eyeing the Sofia market, knowing that 85 square meters is the norm for new builds can guide your expectations and financial planning. It’s a practical detail that can influence your decision-making process.
Whether you’re a first-time buyer or a seasoned investor, this average size offers a snapshot of what’s typical in Sofia, helping you navigate the market with a clearer perspective.
Source: Money.bg
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6) Lozenets is expected to be the most popular district for property purchases in Sofia in 2025
In 2025, Lozenets is the top choice for property buyers in Sofia.
Lozenets offers a unique mix of modern luxury and historical charm, making it a highly desirable area. Known for its high-end residential developments and traditional Bulgarian homes, it provides a perfect blend of the old and new. Its proximity to the city center and access to top-quality shops, bars, and restaurants further enhance its appeal.
The district's charm is especially evident around Journalists' Square, earning it the nickname "the green pearl of Sofia". With its landscaped streets and luxury buildings, Lozenets stands out as a prestigious area for property buyers. The new constructions, tree-lined streets, and closeness to South Park and Vitosha Mountain add to its allure.
In recent years, Sofia's real estate market has been strong, with high demand in the luxury segment. This demand is fueled by Bulgarians, entrepreneurs with stable incomes, and young families working in sectors like IT, food, and pharmaceuticals. The market trends show a consistent interest in high-end residential properties, particularly in central areas like Lozenets.
Lozenets' appeal is not just about luxury; it's about lifestyle. The area offers a vibrant community atmosphere, with easy access to cultural and recreational activities. This makes it an ideal location for those seeking both convenience and a touch of nature.
For anyone considering a property investment in Sofia, Lozenets presents a compelling option. Its combination of modern amenities, historical charm, and strategic location makes it a standout choice for buyers looking for both value and quality of life.
Sources: Sofia Property Broker, Economic.bg, UES.bg
7) Rental yields in Sofia average between 4% and 6%
Rental yields in Sofia are currently averaging between 4% and 6%, making it an attractive option for property investors.
In recent years, the demand for rental properties in Sofia has been steady, fueled by both local residents and international tenants. This consistent demand has helped keep rental prices stable, which is crucial for maintaining these yields. For instance, in the bustling Center of Sofia, a 1-bedroom apartment priced at €175,000 can fetch a monthly rent of €600, resulting in a yield of 4.11%.
Calculating rental yield is straightforward. You take the annual rental income and express it as a percentage of the property's purchase price. So, if you're looking at a property in Manastirski Livadi, where a similar apartment costs €167,671 and rents for €561 monthly, the yield comes out to 4.02%. This involves multiplying the monthly rent by 12 to get the annual rent, then dividing by the purchase price.
Different neighborhoods in Sofia offer varying yields. For example, in Vitosha, the yield is slightly higher at 4.41% for a property costing €135,999 with a monthly rent of €500. Meanwhile, Studentski Grad stands out with one of the higher yields at 5.03%, where a property priced at €118,000 rents for €495 monthly.
These variations show how location within Sofia can impact rental yields. However, the city's average yield remains comfortably between 4% and 6%, offering a balanced investment opportunity.
Investors should consider these neighborhood differences when deciding where to buy. Understanding the local market dynamics can help maximize returns, especially in areas with higher demand and rental rates.
Source: Global Property Guide
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.