Price Deadlock in Bulgaria: Property Sales Fall 22%

Investor.bg

Soaring real estate prices in Bulgaria have created a serious imbalance between supply and demand. The number of transactions has fallen to its lowest level in two decades, buyers are increasingly seeking discounts, and homes are taking months to sell. Yet owners continue to base their expectations on prices seen during the boom, despite a marked slowdown in market activity.

Property Sales in Bulgaria

Decline in Transactions

In the third quarter of 2026, property sales in Bulgaria fell 22.1% compared with the same period of 2025, from 58,200 to 45,300. This was the lowest third-quarter figure since 2005. For the first time since 2010, the number of transactions in the third quarter dropped below 50,000.

From January through September 2026, 129,400 transactions were registered, down 18.8%. The figure was also lower than in the corresponding periods of 2019, 2020 and 2024. The statistics cover residential and commercial property, land plots and other types of real estate.

Trends in Major Cities

The steepest decline was recorded in Varna, down 26.3% to 2,853 transactions. In Plovdiv, the figure fell by 23.9%. Even in Sofia, where employment and domestic migration have traditionally supported demand, buyer activity weakened considerably, by 21.2%. Burgas also saw a significant drop of 14.3%. At the same time, an ARCO Real Estate report noted that the city registered 2,047 transactions in the third quarter, 12.6% more than in April–June.

Along the Black Sea coast, the number of transactions at some companies fell by 50–80%, according to Lyudmila Shabanina of New Estate. She notes that some buyers are postponing decisions partly because of concerns about drone attacks.

Buyer Activity

In addition, selling property in Bulgaria now takes longer. While some properties previously found buyers within a few weeks, the sales process can now take two to four months. Owners of overpriced homes, apartments with shortcomings and properties that have remained on the market for an extended period are more willing to reconsider their asking prices.

The profile of buyers has also changed. Before Bulgaria adopted the euro on January 1, 2026, some purchases were driven by a desire to protect savings or profit from rising property prices. According to Sorenda Real Estate head Evgeni Vasilev, roughly one in five clients in 2025 had such motives. Families buying apartments for their own use now predominate. They compare properties more carefully and take longer to make decisions.

Property Prices in Bulgaria

The decline in transactions has not yet been accompanied by an overall fall in property prices. In the second quarter of 2026, property prices in Bulgaria rose 15.5% compared with the same period of 2025 and 4.5% over three months. Newly built homes became 12.3% more expensive year on year, while prices on the secondary market rose 17.6%, according to the National Statistical Institute.

In Plovdiv, prices rose 5.8% compared with the first quarter, in Varna by 2.8% and in Sofia by 2.4%. Burgas was the exception, with home prices down 1.5%.

About 70% of transactions are concluded with a discount, averaging 5% and exceeding 10% in some cases, according to an October report by Sorenda Real Estate.

Years of rising home prices have limited buyers' purchasing power in Bulgaria. ERA Bulgaria board member Miroslav Vladimirov notes that high property prices have driven around 20% of potential buyers out of the market.

Outlook for Bulgaria's Property Market

The decline in transactions could lead to property prices stabilizing in Bulgaria over the next six months, according to Strahil Ivanov, founder of the Yavlena real estate agency. As homes take longer to sell, some developers are already revising the launch dates of new projects.

Future market trends will also depend on lending conditions. In September 2026, the average interest rate on new housing loans in Bulgaria stood at 2.41%, while the annual percentage rate of charge was 2.76%, according to the Bulgarian National Bank. Affordable mortgages continue to support demand despite high prices.

ERA Bulgaria board member Miroslav Vladimirov believes mortgage interest rates could rise by 0.5–0.7 percentage points in 2027. This could lead to a further fall in sales and slow annual home price growth to 5–7%.

International Investment analysts note that weaker market activity gives buyers more room to negotiate, particularly on properties that have been listed for a long time. For investors, however, the outlook is less attractive: possible price stabilization or even declines, along with slower sales, could adversely affect returns on property investments.

Frequently Asked Questions

How much have property sales in Bulgaria fallen?

In the third quarter of 2026, 45,300 transactions were registered, 22.1% fewer than in the same period of 2025. This was the lowest third-quarter figure since 2005.

Which cities saw the steepest declines?

Transactions fell by 26.3% in Varna, 23.9% in Plovdiv, 21.2% in Sofia and 14.3% in Burgas.

How have home prices in Bulgaria changed?

In the second quarter of 2026, home prices rose 15.5% year on year. Prices on the secondary market increased by 17.6%, while newly built homes became 12.3% more expensive.

What discounts can buyers expect?

Around 70% of transactions involve a discount, usually about 5%. In some cases, the reduction exceeds 10%. These are figures from one agency, not official nationwide statistics.

How did Bulgaria's adoption of the euro affect demand?

Before the euro was introduced, some buyers put their savings into property in anticipation of rising prices. Among agency clients, demand for homes to live in is now more prominent.

What changes are expected in the mortgage market in 2027?

Mortgage interest rates could increase by 0.5–0.7 percentage points in 2027. This is a forecast, not a decision already made by banks.

Could property prices in Bulgaria fall?

That is possible if demand weakens further, particularly for overpriced properties. However, it is not yet clear how widely prices might fall or when such declines could occur.