In the first quarter of 2025, Bulgaria experienced one of the steepest increases in house prices across the European Union, coming in second only to Portugal. Property values surged by 15.1 percent compared to the same period last year, significantly outpacing the EU average growth rate of 5.7 percent, according to data from Eurostat. This positions Bulgaria firmly among the EU’s most dynamic real estate markets.Online education courses.
This rapid growth is most evident in Bulgaria’s major cities, with Sofia continuing to hold the highest property prices nationwide. At the start of 2025, average housing costs in the capital range from 1,500 to 1,900 euros per square meter, influenced by factors such as location, building type, and condition. Certain neighborhoods even report prices exceeding 2,000 euros per square meter. However, some segments of the market, particularly panel buildings and properties on the city’s outskirts with limited access to public transportation, are beginning to show signs of price stabilization or modest declines.
Following Sofia, Plovdiv stands out as a key urban market, where property prices typically vary between 1,100 and 1,400 euros per square meter. In coastal cities like Varna and Burgas, prices range between 1,200 to 1,600 euros and 1,000 to 1,300 euros per square meter, respectively. Smaller towns and rural areas continue to offer more affordable options, attracting buyers seeking tranquility or alternative investment opportunities beyond the bustling city centers.
Several factors are driving this property market boom. One major contributor is the relatively low mortgage interest rates, which, as of May 2025, range from about 2.60% to 4.20% for standard loans in Bulgarian leva. This financial accessibility encourages more buyers to enter the market.
Demographic shifts also play a role, with growing urban populations fueled by students, foreign residents, and migrants from rural areas, all pushing up housing demand. Analysts note that a current catalyst behind rising prices is the concern among many Bulgarians about safeguarding their savings ahead of the country’s eurozone entry. Despite this anxiety, most expect that adopting the euro will bring greater market stability. Projections suggest that while prices will continue to rise in the coming years, growth will be steadier and more predictable than the sharp increases seen recently.