Bulgaria’s Housing Prices Maintain Strong Double-Digit Growth in Q1 2025

According to the Bulgarian National Bank, residential property prices continued their robust rise in the first quarter of 2025, posting a +15.1% increase year-on-year.

Both new developments (+13.4%) and existing homes (+16.2%) saw price growth, with the most dynamic markets recorded in Varna and Ruse.

Key drivers behind the surge:

• Rising household incomes (+15.2% nominal);

• Historically low mortgage interest rates;

• Limited investment alternatives amid negative real deposit rates;

• Higher construction costs (+7.2%).

Investment outlook

The price-to-rent ratio currently stands 47.5% above its historical average, suggesting that many purchases are driven less by rental yields and more by expectations of long-term capital appreciation and capital preservation.

Experts anticipate that property prices will continue to grow at double-digit rates through the end of 2025 and beyond, cementing Bulgaria’s real estate market as one of the most attractive investment destinations in the region.

This article and its distribution rights belong to its author. All photos, texts, video clips, graphics and banners in this article belong to the author and are protected under the Copyright Act of the Republic of Bulgaria. If you wish to use the information in this article, please contact the author to obtain permission.