Property Prices in Sofia Up by €500 per Square Metre

Property prices in Sofia have increased by €500 per square metre over the past year, according to data from one of Bulgaria’s largest real estate agencies. Housing in the country’s major cities has risen by 20% in the final quarter of 2025.

The lull in the property market around the adoption of the euro is now over.

Polina Stoykova, chief executive of a real estate agency, said:
“We are seeing the market return to normal growth rates that are expected to stabilise in the new year under the euro. January showed strong activity despite the anticipated slowdown we had previously, and the market is now fully ready and functioning in euro conditions.”

Although Bulgarians traditionally prefer to live in their own homes, current calculations suggest that renting is more cost-effective than taking out a mortgage.

Stoyne Vassilev, a financial consultant, said:
“Over the past two to three years, financial data and analyses have generally shown that it is better to live in rented accommodation. My observations indicate that in some areas the difference between the rent paid and the mortgage instalment can reach between 50% and 100%. In other words, if the rent is €500, the monthly loan repayment can sometimes reach €1,000.”

The main reason is the sharp rise in property prices. Rents have also increased, but not as significantly. For those considering purchasing a home, experts advise having at least a 20% deposit, planning to live in the property for at least 10 years, and avoiding loans with the maximum repayment term.

Polina Stoykova added:
“We still have very favourable conditions for housing loans — interest rates remain low, banks have already announced their terms in euro, and there are no significant changes in lending conditions.”

Stoyne Vassilev said:
“In the long term, I believe property prices in the major cities and especially the capital will continue to rise, at least due to inflation and the effects associated with it.”

How long the price increases will continue, however, remains unclear.