How is the property market developing in Sofia?

The Sofia real estate market in 2026 is characterized by high activity, stable demand and continued interest in new construction. After the strong years of growth (2020–2024), the market is entering a phase of more moderate growth.

Key factors:

• income growth in the capital;
• stable mortgage lending;
• limited supply of quality projects;
• increased investment interest.

Is there a property bubble in Sofia?

There are currently no classic signs of a bubble:

• there is no massive overbuilding;
• banks maintain a relatively conservative policy;
• The transactions are not entirely speculative.

Rather, we observe market stabilization with moderate growth, especially in the new construction segment.

Forecast for 2026–2027.

It is expected:

• slowing down the rate of appreciation;
• stable prices in the central and southern neighborhoods;
• growth potential in peripheral areas.

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How much have housing prices increased in Sofia over the last 5 years? Data and forecasts

Price growth 2021–2026.

Over the last 5 years, housing prices in Sofia have increased by approximately 60–80%, depending on the neighborhood and type of construction.

Average values:

• 2021: around 1100–1300 €/sq.m
• 2026: €2000–2500/sq m (average)

The strongest growth is in new construction.

What led to the price increase?

• low interest rates in the period 2020–2023.
• inflationary pressure
• limited supply
• increased construction costs

Will prices continue to rise?

More moderate growth is expected – between 5% and 8% per year, in the absence of economic shocks.