BNB: Housing prices in Bulgaria will continue to increase in 2025.

According to the latest data from the Bulgarian National Bank, the residential property market in the country continues to demonstrate stable growth - in the first quarter of 2025, prices increased by 15.1% year-on-year.

Both new construction (+13.4%) and properties already put into operation (+16.2%) are increasing in price, with the strongest growth being reported in Varna and Ruse.

Main reasons for the continued price increase:

• Increase in household income (15.2% nominal);

• Maintaining extremely low mortgage interest rates;

• Lack of good alternatives for saving, given the negative real interest rates on deposits;

• Increase in the price of construction materials and costs (+7.2%).

Market outlook

The ratio between sales price and monthly rent is 47.5% above historical levels, suggesting that the main incentive for purchase is not rental, but the pursuit of long-term preservation of capital value and potential for future profit.

According to analysts, double-digit price growth will persist not only until the end of 2025, but also in the coming years - making property in Bulgaria one of the most attractive investment solutions in the region.

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