Will Property Prices Change with the Adoption of the Euro?

For over 20 years, real estate in Bulgaria has been offered in euros—a practice both buyers and sellers have grown accustomed to. However, many transactions are still completed in Bulgarian levs (BGN) due to more favourable interest rates on bank loans.

With Bulgaria’s upcoming accession to the eurozone, these transactions will finally be conducted in a single currency.

The real estate sector is already seeing a significant shift: demand for properties has surged by nearly 30% since the beginning of 2025, while prices rose by 18% in the first quarter compared to the same period last year.

Two-Room Apartments in High Demand

Polina Stoykova, a longtime real estate analyst, notes a sharp increase in demand for two-room apartments, likely driven by buyers looking to invest their savings.

"Inquiries have risen by 30 to 50%, and it seems people are rushing to close deals. At the same time, property owners are postponing their listings, possibly waiting for eurozone entry. Interest rates remain low, which stimulates demand—especially among first-time buyers," says Stoykova.

Prices on the Rise, but Stabilisation Expected

The surge in demand is naturally driving prices upward. However, experts predict that this trend will slow down after Bulgaria officially adopts the euro.

"The eurozone topic has been exploited not just in the last six months, but for the past three years. I believe that once the transition is complete, prices will stabilise. I don’t expect them to stop rising entirely, but the pace will likely slow down compared to this year," says Alexander Bochev, Chair of the National Association of Real Estate.

The property market is ready for the adoption of the common European currency. Until 2004, homes were traded in dollars, and then in euros.

Market Prepared for Euro Adoption

Bulgaria's real estate market has evolved with currency changes in the past—from being dollar-based until 2004, to pricing in euros since then. In practice, most transactions are already negotiated and paid in euros, though buyers and sellers still had the option to use levs until now.

"As of next year, we’ll likely be able to pay in the currency in which the deal is negotiated. Currently, many transactions are agreed upon in euros and paid in euros, but it’s still up to both parties to decide," Stoykova explains.

According to data from the Registry Agency, a relatively small percentage of Bulgarians buy or sell properties.

“The number of registered property transactions annually ranges between 200,000 and 250,000, while Bulgaria’s population is around 6.7 million. That means roughly 3% of the population engages in a real estate deal each year. As for mortgage lending—yes, there’s an increase, but it remains quite limited as a share of the population,” said Alexander Bochev, Chairman of the National Real Estate Association.

Bochev also noted that the number of transactions is expected to continue rising through the end of the year—and likely beyond—especially after the formal adoption of the euro on January 1, 2026.