Property Prices in Bulgaria: Statistics and Forecast for 2023

Are properties in our big cities expensive or cheap? The answer to this question is different for every household and mostly depends on their income and savings.

But what do the statistics say?

NSI

The National Statistical Institute informs that in the last quarter of 2022, properties in Sofia fell in price by 2.5%. A greater decline is reported for new properties (-5.3%), while existing ones lose a minimal 0.6 percent.

In Varna and Plovdiv there was a minimal growth of 2.1 and 0.2 percent, while in Burgas the price increase was 4.7%.

Knight Frank

The latest data from the consulting company showed that we have one of the biggest increases in property prices. The growth of 14.6% for the last 12 months ranks our country in the 13th position among the 60 considered markets.

After accounting for inflation, the yield on properties in our country is negative and amounts to -1.9%.

Numbeo

The specialized portal comparing the cost of living around the world ranks the major European cities and the average cost of housing in their central parts.

Sofia occupies the 122nd position with a price of 2,582 euros/sq.m. m, which is almost as much as Athens (2,596 euros/sq. m) and Valencia (2,553 euros/sq. m).

Properties in Bucharest, Thessaloniki, Maribor and Catania are cheaper than in our capital.

The average price of housing in the center of Varna is 1,631 euros/sq.m, in Plovdiv – 1,258 euros, and in Burgas – 1,226 euros.

What to expect from prices until the end of 2023?

Inflation is one of the main driving factors for property prices, both here and around the world. If it continues to decline, it will lead to a slowdown in growth and possibly a decline in real estate prices.

The forecast of the Bulgarian National Bank should not be ignored, according to which months of higher interest rates on housing loans are ahead, which will make the purchase of property with a loan more expensive.

Inevitably, this would also lead to a decrease in the number of transactions, which would force sellers to offer discounts or adjust prices downwards.