High housing prices in Bulgaria have driven around 20% of potential buyers out of the market over the past year, while annual property price growth could slow to between 5% and 7% in 2027, Miroslav Vladimirov, a board member of one of the country’s leading real estate brokerage firms, told Bulgarian National Radio (BNR).
Property prices are currently increasing by approximately 15% year over year, but a continued decline in transactions could bring a substantial slowdown in that growth, Vladimirov said.
“The annual price growth remains consistent with 2024 and 2025 levels – hovering around 14–15% year-on-year as of the end of the second quarter. If the decline in transaction volume persists, we are likely to see a slowdown in the rate of price growth; rather than a 15% annual increase, we might see figures in the 3–7% range,” he explained.
The number of property transactions has dropped by 14,086, with the decline beginning in the final quarter of 2025 and continuing through the first two quarters of 2026. Although transaction volumes had remained relatively stable over the previous five years, property prices rose significantly. The latest year-over-year decline amounts to approximately 17% to 18% compared with 2025.
Vladimirov said prices are still rising because demand has not fallen enough to put downward pressure on the market. Mortgage affordability also remains relatively high, he added.
“The mortgage market is what is sustaining this level of transactions. It is primarily buyers using their own funds, their savings, who have withdrawn from the market,” Vladimirov said, noting that some potential buyers are unwilling to pay current prices.
“Inevitably, households will become more cautious and will be less inclined to take unreasonable risks,” he added.
Vladimirov expects property prices to undergo a correction if the decline in transaction volumes continues.
Speaking on BNR’s Horizon Before Noon (Horizont do obed) program, he also forecast a modest increase in mortgage interest rates, although the rise is expected to remain below 1%.
Meanwhile, sellers are continuing to demand prices comparable to those seen last year, keeping properties on the market for longer as the number of transactions falls by 18%.