Real Estate Market in the Eurozone: Buying a Home at €2,000 per Square Metre

The real estate market in Bulgaria has long since entered the Eurozone in practice. For quite some time now, all property transactions have been conducted in euros.

In Sofia, there are hardly any neighbourhoods where the average price per square meter is below €2,000.

Over the past five years, housing prices in Bulgaria have increased significantly.

The upward trend in prices averages between 9% and 15% annually.

This year has been the strongest for the residential property market in Bulgaria compared to previous years — both in terms of demand and the number of completed transactions. This growth is evident not only in Sofia but throughout the country.

Among the main reasons for this are the still very low interest rates on bank financing, as well as the anticipated adoption of the euro.

Many families prefer to invest their money in real estate before the eurozone accession takes place, fearing further price increases.

“It’s very expensive, indeed. A few months ago, we bought a home, and the price was very high.”

Why the rush?

"I don't think we rushed. I think it was the right time. Prices are going to get higher."

Currently, the highest housing prices in Sofia are found in the neighbourhoods of Krastova Vada, Manastirski Livadi, Zone B5, the city centre, and Banishora.

“In the last four years, we have witnessed an increase in both the number of transactions and property prices in Bulgaria. We expect the price growth to continue until the end of 2025. Starting in 2026, we hope to see a stabilisation process in the market, reaching average price levels, a decline in the number of transactions, and a slight slowdown in the rate of property price increases to around 5-6% annually,” said Anton Andonov, CEO of a real estate agency.

Many residents of the capital also believe that Bulgaria’s entry into the Eurozone will rather stabilise housing prices.

“If what the real estate brokers say is true — that 30% of the housing stock is vacant — perhaps after joining the Eurozone, the bubble will burst and things will normalize.”

“From January 1 next year, when we join the Eurozone, prices will certainly start to rise a bit. It will be necessary to wait a little while for people to then decide whether to sell or buy.”

Experts note that with Bulgaria’s entry into the Eurozone, legislative changes are also needed to regulate the real estate market. Currently, two draft laws have been submitted to parliament, which are expected to be considered in the first reading.