House prices in Bulgaria went up by 14% in 2024 alone

The increase in house prices remains high. The industry points out that for the last three months, it is between 10% and 15%. That's why the expectations are for a significantly higher jump in prices this year compared to last year.

In the last quarter, Vidin, Kyustendil and Lovech saw the highest surge by about 20% per square metre. Of the six largest cities in the country, the most significant increase in house prices was in Varna and Ruse - respectively by 15% and 12%. However, in dynamic markets like Sofia and Plovdiv - the increase is below the national average - by about 7%.

The most expensive in absolute terms are the properties in the capital - an average of 1,840 euros per square metre, followed by Varna and Burgas - with prices of 1,443 and 1,300 euros per square metre. In Plovdiv, the average price exceeds 1,200 euros per square metre, and properties in Ruse are more expensive than those in Stara Zagora.

Where are the most sought-after apartments and what does it take to curb the growth in property prices in major cities?

Buyers are mostly looking for new apartment buildings, even though they are getting a home with unfinished walls on plaster and floors on concrete, which requires extra money to finish and finding workers for tiling and decorating.

“The average price of transactions completed in Sofia currently is about 1,840 euros per sq. m. A large part of this price is formed by purchases of properties in newly constructed buildings," said Polina Stoykova, executive director of a real estate agency.

The number of transactions in the big cities and resorts also increased in the third quarter. In Varna and Burgas, residential neighbourhoods in the periphery attract buyers because the prices are slightly lower and there is a large choice of properties. In the capital, districts such as Malinova Dolina, Ovcha Kupel and Banishora are among the most preferred - because of relatively lower prices and convenient infrastructure.

Average house prices in the most sought-after neighbourhoods of Sofia (July - September 2024):

Malinova dolina: 1607 €/sq. m.

Ovcha Kupel: 1642 €/sq. m.

Banishora: 1850 €/sq. m

Mladost: 1876 €/sq. m

Polygona: 1904 €/sq. m

Manastirski livadi: 1941 €/sq. m

Krastova Vada: 1988 €/sq. m

Lozenets: 2654 €/sq. m

"We have a new acceleration this year, which has been sustained in all quarters, and we see a very active market, with still limited supply," said Polina Stoykova.

To bolster it, developers are proposing a package of measures that include building new infrastructure in the north of Sofia to counter the overbuilding in the south. And more:

"If Sofia municipality and other municipalities in big cities, first reduce the administrative burden - it is not necessary to take years to get a building permit, but it should be much faster. This will ease the supply, secondly it will attract foreign capital to this sector", said Eng. Georgi Shopov, chairman of the National Association of Construction Developers.

If this happens, properties with more affordable prices will appear on the market. Otherwise, according to the industry, new housing will become unaffordable for more and more people.

"While last year there was a trend at some stage for housing prices to have risen by 5% and wages by 15%, this year wages are lagging behind the increase in housing prices, wages have risen by 7%, while housing prices by 14%, i.e. the opportunity to buy a home is decreasing," Eng. Shopov summarised.

Statistics show that last year housing prices in the country rose by an average of 18%. For the first 9 months of the current year, the increase is by further 14%.