According to Prian, the excitement has subsided, but prices are still rising. But at a calmer pace, i.e. without 15-20% jumps, as in 2023-2025.
As noted, about 15% of potential buyers have left the Bulgarian market. And we are not talking about foreigners, but about Bulgarians, for whom mortgages are unaffordable because of the high cost. Also gone are the investors-merchants, for whom such objects were the purpose of quick resale.
In 2025 the difference between the housing under construction and ready-made objects was 7-10%. Due to the fact that new buildings have significantly jumped in price, it is no longer profitable to buy them at the excavation stage and sell them for more in a couple of years.
According to forecasts, investment transactions will almost halve: from 25% of the market in 2025 to 10-15% in 2026.
Renting is more profitable than buying housing
Now in Bulgaria it is more profitable to rent a house than to pay for a mortgage.
Thus, in Sofia, the price per square meter has jumped by about 500 euros per year. The reason is the rise in the price of building materials, as well as the tradition of Bulgarians to get their own housing. In Bulgaria, over 80% of residents have their own homes, which is one of the highest rates in Europe.
Taking into account the prices, the difference between the monthly rent and mortgage payment can reach 100%. For example, renting costs 500 euros per month, while a mortgage for a similar property will require at least 1 thousand euros.
This trend has been going on for the last couple of years: real estate prices are rising faster than rental rates.
