Bulgaria is at a crucial stage in its economic development. The country’s entry into the eurozone, scheduled for 1 January 2026, is already having a major impact on the real estate market. Investors – both domestic and foreign – are shifting their capital into real estate, leading to record price growth.
Real estate prices are breaking records
According to Eurostat data, Bulgaria recorded the highest year-on-year increase in property prices among all EU countries in the fourth quarter of 2024 – up 18.3%.
By comparison, the average growth in the eurozone was just 4.2% and 4.9% across the EU. This sharp increase is not only in the capital Sofia, but also in other important cities such as Plovdiv, Varna and Burgas on the Black Sea coast, where demand for housing and investment opportunities is growing strongly.
Property prices in Bulgaria have more than doubled over the past 15 years. The price growth is supported by real demand, favourable credit conditions and expectations associated with the adoption of the common European currency.
Why is the interest in real estate growing right now?1. Transfer of capital from cash to assets
The Bulgarian property market is currently flooded with cash deals. Experts say this is often due to the desire to own legal and transparent property before the introduction of stricter eurozone rules. Once the euro is adopted, any deposit in a bank above a certain value (e.g. over BGN 5 000) will require proof of origin of the funds. For many holders of unofficial cash, buying real estate is therefore the only way to “legalise” their capital.
2. Low mortgage interest rates
Mortgage loans in Bulgaria and in Bulgaria are still offered on very favourable terms – interest rates are between 2.5 and 3%. This motivates both the middle class and foreign investors to secure financing for property purchases before the potential increase in interest rates after eurozone entry.
The interest rates are likely to rise after eurozone entry.
3. Expected investment appreciation
Entry into the Eurozone is expected to further increase the attractiveness of Bulgarian real estate. Similar developments have been seen in other countries – such as Croatia – where property prices have risen by tens of percent following the adoption of the euro. Investors reckon that the next two to three years could see further price rises of 20-40% in the most sought-after locations.
Bulgaria as a safe haven for capital
Assoc. Prof. Dragomir Stefanov from the State University of Economics in Sofia says that the real estate market in Bulgaria is not at the stage of a bubble, but reflects the real economic development and rising incomes of the population. In cities such as Sofia, Plovdiv, Varna and Burgas, prices have increased by 60-70% since 2018, but real wages have grown even faster. This means that real estate is still affordable and economically justified.
According to estimates, there is around BGN 75-80 billion in cash and bank savings in Bulgaria, which may spill over into the real estate market in the near future. This ‘capital flow’ is largely motivated by the desire to own an asset that can grow in value as a result of the adoption of the euro and also serve as a safe store of value. Owning their coveted property in the capital, by the sea or in the mountains is being embraced by an increasing number of investors not only from Bulgaria, but especially from Europe.
Changes brought about by the euro
Bulgaria’s entry into the eurozone will bring increased transparency of financial flows, simplified transactions in euros, a more stable currency and greater investor confidence. At the same time, it introduces stricter rules for proving the origin of funds. This is why the current period is considered to be the last chance to invest in Bulgarian real estate without additional administrative restrictions.
Recommendations for prospective buyers
According to experts, the right time to buy a property is now – before we enter the Eurozone. Good financial planning and a quality property in an attractive location can bring not only value for money but also long-term financial security.
How Relax Properties can help you
Relax Properties offers a wide range of properties in Bulgaria – we focus on attractive locations on the Black Sea coast, but also in the Bulgarian mountains. If you are planning to buy a property as an investment or as your own home by the sea, we will be happy to help you find the most suitable solution, proven complexes and guide you through the whole process – from choosing a location, to checking the documentation, to handing over the keys, insurance and setting up payments.
Closing
Bulgaria is becoming a centre of investment interest within Europe in the coming months. Upcoming membership of the Eurozone, favourable mortgage conditions and rapidly rising property prices offer an ideal opportunity for investors and individuals seeking stability, appreciation and protection of their capital.
If you would like an up-to-date quote or a free consultation, please contact us. We are here for you.
