Rising Demand and Limited Supply Push Property Prices Up Across Bulgaria

Bulgaria has experienced a growth in real estate transactions, with the Registry Agency reporting an increase of around 3%, according to real estate consultant Dobromir Ganev during an interview on Nova TV. In total, approximately 101,000 deeds were registered, though Ganev noted that the actual number of transactions is likely slightly higher.

Sofia has seen particularly strong growth, with the volume of transactions in the first half of the year reaching levels not seen since 2005, marking a potential record for the capital. In contrast, Varna and Burgas have experienced a decline in registered deeds over the past two quarters, while Plovdiv shows only modest growth.

The upward trend in property prices shows no signs of slowing. Ganev highlighted at least ten key factors driving the increase. Around 70% of buyers are seeking housing primarily for personal use, while others are motivated by the desire to protect their savings from inflation or concerns over geopolitical uncertainties.

Bank interest rates and declining supply also play significant roles. This year, new residential construction has dropped by 40%, while citizens’ incomes have risen, further fueling demand. Financial consultant Ivo Dimitrov explained that favorable interest rates, strong nominal income growth, and limited supply are creating anticipatory, sometimes irrational demand, which is expected to push property prices even higher.