An analysis of the Bulgarian real estate market conducted by the Open4business portal showed that the growth in housing prices in Bulgaria has slowed, but foreign demand remains significant.
The pace of housing price growth in Bulgaria began to slow after a very strong surge throughout 2025, although the market itself remains in a growth phase. According to data from the National Statistical Institute of Bulgaria (NSI), housing prices rose by 15.1% year-over-year in the first quarter of 2025, by 15.5% in the second quarter, and by 15.4% in the third quarter, indicating that the rate of price increases remains high but is no longer accelerating.
An additional factor driving growth in 2025 was the expectation of Bulgaria’s transition to the euro on January 1, 2026. As early as the end of 2025, Bulgarian media and market participants explicitly noted that some buyers were expediting their decisions specifically in anticipation of the currency change, which spurred activity in the housing market.
Foreigners continue to play a significant role in the Bulgarian real estate market, particularly in resort and coastal locations. However, it is important to note that complete official Bulgarian government statistics on homebuyers by citizenship for 2025–2026 are not publicly available. The most frequently cited recent breakdown of foreign demand is based on data from the Bulgarian Real Estate Association and market surveys. According to these estimates, in 2024–2025, the most active foreign buyers included citizens of the United Kingdom, Germany, Greece, Israel, Romania, Turkey, Italy, Russia, Ukraine, and Poland.
According to the same market data, Ukrainians rank among the top 10 foreign homebuyers in Bulgaria. Their demand is driven both by relocation due to the war and by investment interest, primarily in properties on the Black Sea coast and in tourist regions. Among the most sought-after destinations are Varna, Burgas, Nessebar, as well as the mountain resorts of Bansko and Pamporovo.
The market continues to be supported by a price base that is relatively low by EU standards. Even after the recent growth, Bulgaria remains one of the most affordable housing markets in the European Union, which continues to attract foreign capital and sustain demand for apartments both for personal use and for rental purposes.
In the near term, the most likely scenario appears to be a further slowdown in price growth rather than a sharp decline. While the market grew at double-digit rates in 2025, a transition to moderate growth—roughly in the range of 5–7% per year—seems more realistic for 2026. This forecast is based on the already noticeable slowdown in growth rates, the high-base effect, and the fact that the euro has already been introduced and a significant portion of speculative demand was likely realized in advance.
On February 1, Bulgaria ended its transition period for currency change, during which it was possible to pay in both Bulgarian levs and euros. Now, payments are made exclusively in euros, according to the Bulgarian service of Radio Liberty.
“At midnight on January 31, the one-month period during which the euro and the lev were in simultaneous circulation in Bulgaria ended. From February 1, merchants no longer accept payments in levs and must give change only in the single European currency,” according to a statement on the publication’s website.
People who still have cash levs can exchange them for euros at commercial banks and Bulgarian Post offices until June 30. After that date, commercial banks may set a certain exchange rate, but the Bulgarian National Bank will continue to offer cash lev-euro exchanges free of charge and without a deadline.
Retail chains will have to display prices for goods in both euros and levs for another six months, until August 8, “for transparency and to prevent speculative practices.”
Although the law prohibits sellers of goods and services from raising prices during the first six months of the euro’s introduction, hundreds of complaints about possible violations have already been received.
Bulgaria joined the eurozone on January 1, 2026, 18 years after joining the EU. January was a transition period when the lev and the euro were in circulation simultaneously.
Bulgaria, Greece, and Romania have agreed to prepare a joint application for European funding for a high-speed railway line along the “Western Axis” Athens-Thessaloniki-Sofia-Bucharest, according to the Bulgarian publication Sega.
According to the publication, the initiative was discussed at a meeting between representatives of the three countries and the European Commission in the context of the development of the North-South transport corridor, which is intended to connect the Baltic, Black and Aegean Seas. The meeting was hosted by Bulgarian Deputy Prime Minister and Minister of Transport Grozdan Karadzhov.
Greek Transport Minister Konstantinos Kiranakis said that by 2027, it is planned to provide high-quality passenger rail service between Thessaloniki and Sofia, while the Bulgarian side recalled that rail service on this route was interrupted in 2017.
Karadzhov also noted that the countries intend to synchronize planning, design, and permitting procedures to avoid delays and bureaucratic obstacles. Among Bulgaria’s priorities, he highlighted the acceleration of the project for a new bridge across the Danube between Ruse and Giurgiu, as well as the preparation of projects for new bridges in the Nikopol-Turnu Măgurele and Silistra-Kelerashi areas; the restoration of ferry connections on the Danube, including the Ruse-Giurgiu line, was also mentioned.
According to Sega, Romanian Transport Ministry representative Ionut Cristian Savoiu named among Romania’s priorities the modernization of the existing Giurgiu-Ruse bridge, the construction of a new Danube bridge, and the development of road and rail lines, as well as improvements on the Vidin – Calafat – Craiova section for better connectivity with Ukraine and Moldova.
Non-resident investments in Bulgarian real estate in January-November 2025 resulted in a net outflow of €18.6 million, while Russia recorded a net outflow of €19.9 million, according to data from the Bulgarian National Bank (BNB).
According to BNB data, a year earlier (January-November 2024), the net outflow of non-resident investments in real estate was estimated at €11.6 million.
The net outflow indicator means that non-residents’ payments under real estate agreements in the country during the period under review were lower than receipts, i.e., sales exceeded purchases in value terms. At the same time, the fact that the total indicator for all non-residents (-€18.6 million) was less than the outflow for the Russian Federation (-€19.9 million) formally indicates a small aggregate net inflow of investment in real estate from other countries (about €1.3 million).
The BNB report, which is referenced by the media, does not provide a separate breakdown by other countries (including Ukraine) in terms of non-resident investment in real estate—only Russia is highlighted separately.
On January 1, 2026, Bulgaria will adopt the single European currency, the euro.
“This is a historic step for the country and a boon for individuals and businesses in the euro area. The transition will lead to greater economic stability, smoother transactions, and stronger European integration. For Bulgaria, adopting the euro will help to better support long-term economic growth and strengthen its resilience,” according to a statement on the European Central Bank’s website.
The publication notes that “the changes may raise questions and concerns.” “However, the ECB and national authorities are working closely together to ensure a smooth transition for everyone through careful planning and a focus on price stability,” the European Central Bank assures.
Bulgaria is parting with its national currency, the lev, 19 years after joining the European Union. The press in the veteran eurozone countries points out that this will be convenient for tourists and travelers. However, there are concerns in Bulgaria itself, as the ECB acknowledges.
Expectations of benefits are overshadowed by concerns about possible price increases, as seen in Croatia, which joined the eurozone three years ago. These fears are all the more serious given that Bulgaria is one of the poorest countries in the EU.
Nevertheless, the European Commission (EC) considered that this Balkan country, which is becoming the 21st member of the eurozone, has met the relevant criteria: economic stability, public debt below 60% of GDP, and low inflation.
On June 4, 2025, the EC announced its conclusion that Bulgaria was ready to switch to the euro on January 1, 2026.
“Thanks to the euro, Bulgaria’s economy will become stronger, with more trade with eurozone partners, foreign direct investment, access to finance, quality jobs, and real incomes. And Bulgaria will take its rightful place in decision-making within the eurozone,” said EC President Ursula von der Leyen on this occasion.
The EU Council, in turn, announced on July 8, 2025, the approval of the last three legal acts necessary for the introduction of the euro in Bulgaria on January 1, 2026.
“This marks the culmination of a thorough accession process for Bulgaria, which has involved rigorous analysis and intensive preparation,” said Danish Economy Minister Stephanie Lose, who was chairing the EU Council at the time.
“One of the three legal acts sets the exchange rate between the euro and the Bulgarian lev at 1.95583 levs per euro. This corresponds to the current central rate of the lev in the Exchange Rate Mechanism II,” the EU Council said in a statement.
After Bulgaria joins the eurozone, six countries will remain in the EU that do not use this currency: Hungary, Denmark, Poland, Romania, the Czech Republic, and Sweden.
The European Monetary Union, or eurozone, began operating on January 1, 1999, when the single European currency, the euro, was introduced into non-cash circulation. Since March 1, 2002, the euro has been the sole legal tender in the eurozone. Eurozone countries transfer all monetary policy powers to the ECB, including decisions on the amount of money supply and the key interest rate.
In Bulgaria, amid the transition to the euro, some of the population remain concerned about possible price increases and heightened political tensions, according to media reports.
The country will join the eurozone on January 1, 2026, becoming the 21st country to adopt the single European currency.
There are also reports of a protest campaign under the slogan of preserving the Bulgarian lev, and according to Eurobarometer, about 49% of Bulgarians oppose the introduction of the euro.
The article notes that the ECB and European institutions point to the potential benefits of the transition, and the fixed conversion rate is set at 1.95583 leva per euro.
At the same time, according to media reports, the Bulgarian parliament strengthened control mechanisms in the summer to stop unjustified price increases when the currency changes.
Possible scenarios for the rise in the cost of living due to the introduction of the euro: the mildest scenario is a short-term “rounding” effect in retail trade, when some prices are rounded up, which usually contributes slightly and temporarily to inflation.
A more severe scenario is attempts by individual sellers and services to take advantage of the transition period and raise prices more than the conversion dictates, against the backdrop of already noticeable increases in the cost of food and real estate in 2025.
A negative scenario for citizens is if the rise in prices in the consumer basket outpaces the indexation of wages and pensions, real purchasing power will temporarily decline even with a formally small increase in inflation.
