Bulgaria ranks second in EU for house price growth in early 2025 – Eurostat

Property prices rose by 15.1% compared with the same period in 2024, trailing only Portugal, which posted a 16.3% increase. The EU average stood at 5.7%, placing Bulgaria among the bloc’s most dynamic real estate markets.

The surge is most pronounced in major cities. Sofia remains the country’s most expensive housing market. At the start of 2025, the average asking price in the capital ranged between €1,500 and €1,900 per square metre, depending on location, building type and condition, according to a leading real estate platform. In some neighbourhoods, prices exceed €2,000 per square metre.

However, early signs of stagnation or modest decline have emerged in certain segments, particularly prefabricated buildings and peripheral districts with limited public transport links.

Plovdiv ranks as the second most attractive city after Sofia, with average prices between €1,100 and €1,400 per square metre. In Varna, prices range from €1,200 to €1,600, while Burgas reports values between €1,000 and €1,300.

Analysts attribute the sharp rise in property prices partly to low mortgage interest rates. As of May 2025, average rates for standard housing loans in BGN ranged from 2.60% to 4.20%, supporting continued demand despite escalating costs.

Demographic pressure in major cities is another factor, driven by rising demand from students, foreign nationals, and workers relocating from smaller towns.

Some analysts also point to public concern over potential loss of savings ahead of Bulgaria’s expected eurozone accession, prompting many to invest in real estate as a hedge.

While this uncertainty is seen as a short-term catalyst, most forecasts suggest that adoption of the euro will ultimately bring greater market stability. Property prices are expected to continue rising, though at a slower and more predictable pace in the coming years.

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