High Housing Costs Deter Buyers in Bulgaria, Brokers Warn

High housing prices are increasingly discouraging potential buyers in Bulgaria, according to real estate brokers. One of the areas in Sofia that remains most in demand is Manastirski Livadi, where a standard three-room apartment of around 90 square meters now exceeds 300,000 euros.

Emil Drumev of the National Association of Real Estate Brokers compared the situation across regions, noting that similar properties in the northern parts of Sofia cost about 270,000 euros, while in major cities such as Plovdiv, Varna, and Burgas, the same type of apartment is being sought in the range of 220,000 to 250,000 euros.

Property values have been on a steady rise since the start of the year. Drumev pointed out that, ahead of Bulgaria’s eurozone entry, he does not anticipate either a boom or a complete halt in transactions. He emphasized that banks are still extending housing loans, although lending practices have become noticeably stricter compared to last year. This tightening has led to a slight slowdown, but not a freeze, in the market.

According to Drumev, it is precisely the high prices that are deterring many from investing in housing. He expects any significant correction in values to come only after 2026, and only if banks further restrict credit conditions.

For now, he stressed, as long as interest rates remain low, property sales will continue. His advice to buyers is to always consult with experienced professionals when entering into a real estate deal, as expert guidance remains crucial in navigating the market.