Sofia Property Market Set for Price Rises in 2026 Despite Falling Transactions

Property prices in Sofia are expected to continue their upward trend in 2026, even as the number of completed transactions declines, according to real estate expert Dr. Georgi Yankov. Speaking to Radio Sofia, Yankov, co-founder of Imvestia and a managing partner at a major real estate agency, noted that rising prices do not indicate a market equilibrium where buyers can easily afford properties. Instead, the dynamic reflects a broader European trend, where property values increase while the volume of transactions contracts. This scenario is likely to characterize the Bulgarian market in the coming year.

Yankov emphasized that the supply of new properties will be a key factor. Personnel changes at Sofia Municipality, including the resignation of Chief Architect Bogdana Panayotova, introduce additional uncertainty for the construction sector. The expert also highlighted the growing bank deposits over the past seven quarters, which have expanded faster than income, creating a surplus of money that could eventually flow into the real estate market. In 2025, new residential construction in Sofia fell by 30% compared to 2024, equating to roughly 2,000 fewer properties in development, a reduction expected to impact market availability. According to Yankov, the Bulgarian public’s long-standing confidence in property investments has prevented a price correction, keeping the focus firmly on real estate as a preferred asset.