Bulgaria's Real Estate Trends: Two-Bedroom Apartments Outpace Three-Bedrooms

The real estate market in Bulgaria maintained stability and activity during the first quarter of 2025, with strong demand despite a moderate drop in transactions compared to late 2024 and the ongoing development of new buildings. The absence of major shocks and sustained buyer interest set the stage for potentially rising or stable prices.

Access to bank loans remains available, and recent changes in the regulations by the Bulgarian National Bank, which came into effect in the fall of the previous year, have not significantly impacted the demand for mortgages. Expectations for 2025 remain optimistic, with continued high demand and limited supply expected to drive the market's performance.

According to data from Arco Real Estate, two-bedroom and three-bedroom apartments were the most in-demand during the first quarter of 2025, with two-bedroom units being the most sought after, followed by three-bedroom properties. In contrast, multi-room apartments, studios, and maisonettes saw significantly lower interest. Properties that are completed and furnished are particularly popular, although these tend to be scarce.

In comparison to the previous quarter, no major changes were observed, although there was a slight decline in demand for houses. Young families with children are particularly interested in homes located within a 30-40 km radius of Sofia, where access to the capital is convenient. However, such properties are less common, often requiring substantial renovation or being priced higher than expected.

Average housing prices remained consistent, with two-bedroom apartments ranging between 1,900 and 2,200 euros per square meter, and three-bedroom units priced between 1,800 and 2,100 euros per square meter. Prices can vary significantly based on location and the property's condition. In central Sofia and more prestigious areas, the price for new properties starts at 2,200 euros per square meter, with the ideal central location reaching around 2,500-3,200 euros per square meter.

The southern regions of Sofia, including neighborhoods like Lozenets, Vitosha, Krastova Vada, and others, continued to be the most popular among buyers. Key factors influencing purchasing decisions include parking availability, proximity to retail chains, educational institutions, and access to public transport.

The supply of properties remained limited compared to demand. Most available properties were under construction, resulting in a shortage of completed homes ready for immediate occupancy. Two- and three-bedroom apartments represented the majority of the supply, while one-bedroom and four-bedroom apartments were less common. In terms of houses near Sofia, the supply declined slightly compared to the previous quarter of 2024.

The supply of office and commercial spaces also remained limited. Areas like Malinova Dolina, Krastova Vada, and Vitosha saw the most active development due to the ongoing construction of new projects.

The average price range for offered properties varied from 1,600 to 2,400 euros per square meter, depending on the development stage, location, and specific characteristics of the property.

In Plovdiv, the real estate market remained stable in the first quarter of 2025, with continued interest in two- and three-bedroom apartments, though property prices in Plovdiv remained more affordable compared to Sofia. New construction continued to develop well, and modern housing with essential amenities was sought after by buyers.

There was a slight decrease in the demand for houses, as well as for commercial and office spaces compared to previous quarters. Average property prices in Plovdiv ranged from 1,200 to 1,600 euros per square meter, depending on the property's characteristics and location. Preferred districts in the city included Karshiyaka, Hristo Smirnenski, Trakia, and the city center.

The vacation property market remained stable with no significant changes observed. Buyers were mainly Bulgarian citizens, although foreign buyers, including Poles, Germans, Czechs, and Slovaks, were also active in the market. The most sought-after vacation properties were those with good locations and scenic views of the seashore or mountains.

On the Black Sea coast, the Northern resorts of St. Constantine and Elena, Chaika, Balchik, Kavarna, and Byala remained popular. In the central region, resorts like Nessebar, Sveti Vlas, Sunny Beach, and Pomorie attracted significant buyer interest. In the southern region, the areas of Sozopol, Chernomorets, Lozenets, and Tsarevo also saw a rise in demand. Prices in Sozopol ranged from 1,900 to 2,500 euros per square meter, in Pomorie from 1,500 to 1,600 euros per square meter, and in Sveti Vlas from 1,200 to 1,800 euros per square meter.

In the mountain resorts, Bansko remained the most popular destination for property purchases, with prices ranging from 1,100 to 1,500 euros per square meter. Interest was also noted in Borovets due to its proximity to Sofia, as well as in Pamporovo, where property prices were more affordable.