Property Market in Bulgaria: Surge in Demand for New Construction Homes Pushes Prices Up 10%

Georgi Shopov, chairman of the National Association of Construction Entrepreneurs, forecasts a 10% increase in the prices of new construction properties in Bulgaria as the country enters the eurozone. Speaking to Nova News, he highlighted that foreign investors are increasingly interested in purchasing entire residential buildings. “It is not simply the euro but the security of the eurozone that attracts them,” Shopov said. He warned that administrative hurdles and foreign capital speculation could reduce housing availability for local buyers, pushing prices higher, and urged the government to implement measures to mitigate the impact.

Shopov emphasized the significance of the construction sector to Bulgaria’s economy. According to NSI data, the sector contributes roughly 7.5 billion leva (€3.8 billion) in taxes, making it the third-largest employer nationwide. The sector’s contribution to GDP grew by 11%, reaching 4.2% in absolute terms. Employment in construction has risen to 156,000, a 34% improvement over the previous year, representing 7% of total national employment. Wages in the sector increased by 17%, totaling around 2.3 billion leva (€1.16 billion).

Despite these gains, Shopov noted persistent challenges, including delivery delays, difficulty finding qualified labor, and a heavy administrative burden. He highlighted problems with building permits, which he said often violate existing regulations, constraining production, limiting job creation, reducing budget contributions, and driving up property prices.

Shopov also criticized the state budget plan for 2026, arguing that it fails to promote development. “Raising salaries mechanically does not generate real growth. It increases spending power without a corresponding rise in productivity or products, leaving people effectively poorer,” he explained. According to Shopov, a forward-looking budget should focus on creating conditions for new production and employment to foster genuine economic growth and wealth creation.