Bulgaria ranked second in the EU in terms of housing price growth in the first quarter of 2025, showing a jump of 15.1% compared to the same period in 2024. Only Portugal recorded a higher increase, at 16.3%. The average growth across EU countries is just 5.7%, which puts Bulgaria among the most dynamically developing real estate markets in Europe, according to Eurostat data.
This boom is particularly noticeable in large cities. Sofia remains the most expensive place to live in the country. According to a leading real estate platform, at the beginning of 2025, the average price of housing in the capital ranged from €1,500 to €1,900 per square meter, depending on the location, type of construction, and condition of the property. In some areas, prices even exceed €2,000 per square meter. However, there are already signs of stagnation or a slight decline in certain areas, mainly in prefabricated apartments and properties in remote areas of the city with limited access to public transport.
After Sofia, Plovdiv is the most attractive city, with average property prices ranging from €1,100 to €1,400 per square meter. In Varna, prices range from €1,200 to €1,600, and in Burgas, from €1,000 to €1,300 per square meter. In small towns, however, prices remain relatively affordable, which attracts people looking for peace and quiet or investment opportunities outside large urban centers.
According to analysts, one of the factors fueling the boom in the Bulgarian real estate market is the relatively low interest rates on mortgage loans. As of May 2025, the average interest rate on standard mortgages in leva ranged from 2.60% to 4.20%.
Demographic pressure in large cities from students, foreigners, and workers from the provinces also has an impact, increasing demand. According to some analysts, an additional catalyst for price growth at the moment is people’s fear of losing their savings in connection with Bulgaria’s upcoming entry into the eurozone. Overall, however, expectations prevail that the euro will stabilize the market, and according to forecasts, prices will continue to rise in the coming years, but this will happen more smoothly and predictably.
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