After a record price spike in recent years, most forecasts for 2026 point to a 5-10% price increase across the country.
In Prices in Sofia are expected to increase by 8-12%, while the average price of new apartments is already 2,487 euros per square meter. In prestigious areas such as Oborishte, prices reach 3764 euros per sq. m.
In other major cities such as Plovdiv, Varna and Burgas are also expected to continue price increases, but at a more moderate pace after a sharp jump in 2025. Prices in Burgas alone increased by almost 26% that year.
Rising construction costs remain the main determinant of housing prices. Data from construction companies indicate a 15-18% increase in costs in 2025, and this trend is expected to continue in 2026, with material and labor costs likely to rise faster due to Bulgaria's recent switch to the euro. Mastikov stressed that this factor will continue to support price growth, even though the behavior of buyers is becoming more balanced.
As for the types of housing, the demand for two- and three-bedroom apartments continues to prevail in the leading cities of Bulgaria, including Sofia, Plovdiv, Burgas, Varna, Stara Zagora, Pleven, Ruse, Haskovo and Kazanlak./strong>. There is renewed interest in holiday properties, especially along the southern Black Sea coast, while private homes remain highly popular. Small towns surrounding large megacities are increasingly becoming construction sites where private homes are being built and large investment projects are being implemented.
Preliminary statistics for 2025 show that the total area of construction started reached 8.6 million square meters, which is 7.5% more than in 2024. Most of the facilities account for residential construction of more than 5.96 million square meters, while the construction of country houses and vacation homes increased by 35% year-on-year, amounting to 171,098 square meters. m.
The capital remains the most expensive market, recording an increase of 23.49%, while the average price in the center of Sofia is 3327 euros per square meter. Significant growth was also noted in the coastal cities of Burgas. – +25,76%, Plovdiv – +15,74%, Varna – +14,18%.
Mastikov notes that the reduction of banks' mandatory reserves from 12% to 1% after the adoption of the euro freed up about BGN 16 billion (approximately 8.2 billion euros), which helped stabilize mortgage rates at 3% to 3.5%. despite the general European trends. Combined with rising incomes, high demand, cheap financing, and limited availability of modern, high-quality housing, these factors continue to drive construction activity.
Looking to the future, Mastikov emphasizes that Bulgaria's entry into the eurozone will be a long-term economic catalyst.Source: Novinite
