Housing Market Booms in Sofia and Beyond as Euro Adoption Approaches

The housing market in Sofia remains exceptionally active, driven in large part by the anticipated adoption of the euro, which has heightened interest in property acquisition. According to the Registry Agency, the Bulgarian capital saw a record number of property transactions in the second quarter of this year, the highest for this period since 2008.

Between April and June, Sofia registered 10,647 property sales, marking a 10.4% increase compared to 9,641 transactions during the same timeframe last year. The last time the city surpassed 10,000 deals in a second quarter was in 2008, with 10,980 transactions recorded. Furthermore, the number of deals during this quarter is 24% higher than the previous one, reflecting a notable surge in market activity.

This heightened demand extends beyond Sofia and the country’s largest cities to smaller towns and rural areas, where there is growing interest in homes and holiday properties. Buyers in these locations are motivated both by the desire for better living conditions and by the opportunity to invest before Bulgaria enters the eurozone, thereby seeking protection against inflation.

Data from the Registry Agency highlights that registry offices in seven cities - Sofia, Plovdiv, Varna, Burgas, Ruse, Nessebar, and Stara Zagora - each recorded over 1,000 transactions during the quarter. Additionally, 14 other cities saw between 500 and 1,000 transactions in the same period, indicating that property demand is widespread and not confined to major urban centers.

Overall, Bulgaria saw 56,010 property transactions nationwide in the second quarter, a 3% increase from 54,379 in the same period last year, and more than a 24% rise compared to the first quarter of this year.

The real estate market’s growth varies significantly across different cities. In 36 cities, transaction numbers increased by over 10% compared to last year, demonstrating widespread buyer activity. The town of Tran registered the most dramatic rise, with 59 property sales - almost five times the volume from a year earlier, a 392% increase. This spike is attributed in part to a growing desire for rural properties close to Sofia.

Other notable increases were observed in Ardino and Ivaylovgrad, which reported rises of 128% and 100%, respectively, in quarterly transaction counts. Ardino recorded 41 sales, while Ivaylovgrad had 46 during the quarter.

Resort towns have also experienced substantial growth. Tsarevo registered 405 transactions - a jump of over 40% from last year - while Kavarna’s 244 sales marked an 11% increase. The trend toward purchasing rural and vacation homes, which accelerated during the pandemic, remains strong. Motivations include the appeal of having a second residence near the sea or in scenic natural surroundings for family retreats, as well as the flexibility offered by remote work, prompting many to relocate from larger cities. Moreover, many view property buying as a solid investment opportunity.