The upcoming eurozone accession is expected to influence property prices in Bulgaria, particularly in larger urban centers. Industry professionals forecast a temporary increase in real estate values, ranging from 9 to 15 percent, with the trend most visible in cities like Sofia, Plovdiv, Varna, and Burgas, BNR reports.
The surge in construction activity observed across these cities is one of the contributing factors. However, real estate agents point out that available land for new developments is becoming increasingly limited, which could naturally slow down the pace of new projects in the near future.
Ivan Velkov, chairman of the Board of Directors of the Bulgarian Association for Facility Management, notes that the euro’s introduction will likely generate additional foreign interest in Bulgaria’s residential market. According to him, the rise in property prices is largely tied to increasing costs for quality construction materials, better architectural design, and more efficient property management – all elements contributing to the growing value of higher-standard housing.
“In reality, inflation is driving up expenses across all sectors,” Velkov explained. “Buildings that meet modern standards and provide high-quality services are becoming more expensive to develop and manage. The real concern lies with properties that fail to meet these standards yet continue to chase similar market prices.”
He also emphasized that fears surrounding price hikes are often misplaced: “With 4.3 million homes and a population of 5.8 million, there’s no need for panic over housing costs. If someone is overly concerned about rising prices, perhaps it’s better to sell than to buy.”
Echoing this perspective, Alexander Bochev, chairman of the National Real Estate Association, believes the current trend of rising apartment prices will persist throughout the year. He expects increases within the 9–12 percent range, though some estimates suggest up to 15 percent in certain markets.
Bochev referenced Croatia’s experience as a recent eurozone entrant, where property prices climbed between 6 and 10 percent over five years. He suggested that Bulgaria could witness a similar trajectory once it adopts the single currency.
Another important factor driving property appreciation, Bochev adds, is the diminishing availability of building plots in major cities, which intensifies demand for existing homes.
Housing demand is also shaped by demographic and geographic trends. In Sofia, for instance, financially stable families in their middle years tend to seek larger three- or four-bedroom apartments. Meanwhile, younger buyers gravitate toward smaller units, particularly in neighborhoods such as Studentski Grad, Ovcha Kupel, and areas close to business parks, where affordability and convenience are key considerations.