Housing prices in Sofia, Bulgaria, continue to experience growth, although signs of a slowdown are emerging. The market is active, with both investors and homebuyers showing interest. Three-room apartments now make up 42% of purchases, equaling the share of two-room apartments that dominated the market last year. Properties are selling quickly, often within days of listing.
According to “Bulgarian Properties,” new property listings have increased by around 10% compared to the same period in 2022. This rise comes after a shortage of available properties in recent years. The volume of housing loans has also increased, returning to pre-pandemic levels and driving market activity.
Despite expectations of rising interest rates, they have remained minimal, giving confidence to buyers. Positive macroeconomic factors, such as low unemployment and income growth, contribute to the stability of the price-to-income ratio and support real estate investment. Inflation and limited investment alternatives also drive market growth.
The average price of homes in Sofia in the first quarter of 2023 was €1,545 per square meter, representing a 15% annual growth rate. However, this growth is slowing compared to previous years. Price increases have been driven by inflation, and a peak in prices may have been reached. Affordability remains relatively stable compared to the previous market peak in 2008.
While the number of transactions has declined slightly, the market remains active, especially in new construction. Popular neighborhoods in Sofia include “Banishora,” “The Zones,” “Malinova Dolina,” and “Krastova vada,” where new complexes and buildings are being developed.
Overall, the Sofia housing market shows signs of balanced growth, with continued interest from buyers and a more diverse range of property options.
