Housing Prices Soar in Bulgaria’s Major Cities as Demand and Supply Strain Increase

The real estate market in Bulgaria continues to show strong growth as housing prices in major cities rise in early 2025. According to data from Zimoti.com, both the demand for housing and favorable mortgage conditions are contributing to the increase in property prices, particularly in Sofia, Plovdiv, and Burgas.

In the first two months of 2025, property prices in these cities rose between 8% and 15% on an annual basis. This increase is primarily driven by a limited supply of new homes, heightened demand, especially from young families and investors, and low mortgage rates. Migration trends toward larger cities are also playing a role in the price escalation.

The average price of housing per square meter in early 2025 is as follows: Sofia at €1980, Plovdiv at €1150, Varna at €1550, and Burgas at €1200. As the purchase market strengthens, rents are also rising, with rental prices for two-bedroom apartments increasing faster than wages for many Bulgarians. In Sofia, the average rent for a two-bedroom apartment is €680 per month, while in Plovdiv and Burgas, it stands at €450, and in Varna, €520.

Several key factors contribute to this upward trend in housing costs. Inflation and rising construction expenses have raised the prices of building materials and labor, putting additional pressure on property prices. Meanwhile, the relatively low interest rates on mortgage loans continue to stimulate property purchases. Furthermore, there is a shortage of newly built homes, particularly in desirable urban areas, which has pushed prices higher in the real estate market.

Another significant factor driving the market is the growing interest in real estate as a form of investment. Many buyers view properties as a safe haven to protect their savings from inflation, which only intensifies the demand. As a result, both property prices and rents in Sofia, Plovdiv, and Burgas are likely to continue increasing in the coming months, making the housing market more expensive for both buyers and tenants.