Bulgaria’s Real Estate Market and the Euro: What to Expect After Adoption

The question of how Bulgaria’s adoption of the euro will influence the real estate market has sparked considerable interest among property owners, buyers, and investors. On the Bulgarian National Radio (BNR), two experts shared their perspectives: Ivan Velkov, Chairman of the Bulgarian Facility Management Association and the Interactive Bulgaria Foundation, and Assoc. Prof. Miroslav Vladimirov, University of Economics in Varna and Deputy Chair of the Association of Credit Intermediaries.

Ivan Velkov expressed a cautiously optimistic view, suggesting that the real estate market will experience only moderate and predictable effects from the euro’s introduction. He highlighted that Bulgaria’s housing stock exceeds 4.3 million units, with many people owning multiple properties, providing a sense of security in the market. Velkov emphasized that the real estate market operates on its own internal logic, visible to professionals, and that the official euro adoption, whenever it occurs, won’t trigger dramatic changes. While some market aspects will align more closely with eurozone standards, no sudden shocks are expected. He also pointed out, referencing a study on energy renovation, that in Sofia’s large multi-apartment buildings, only about 6 to 8 percent of homes are occupied, indicating a high number of uninhabited properties and a predominance of sellers over buyers.

Assoc. Prof. Miroslav Vladimirov took a more definitive stance, asserting that joining the eurozone will not cause any major shift in the real estate market, as this impact has already been factored in. He explained that markets typically react to unexpected events, but eurozone accession is a long-anticipated development, and the market has adjusted accordingly. Vladimirov focused on recent trends, noting that transaction volumes have remained relatively stable over the past three years, while prices have surged by nearly 50 percent, suggesting the market has likely peaked in this current cycle, which began around the time of the Covid pandemic. Looking ahead, he predicted a phase of reassessment among buyers, with the market seeking a new balance.

All in all, both experts agree that the euro’s arrival will not drastically reshape Bulgaria’s real estate scene; instead, the market appears poised for a period of stabilization and adjustment rather than upheaval.

Source: BNR interview