Deals fell by 40%.
Prices keep rising.
Varna –43%, Burgas –40%, Sofia –38%: the fall in the number of deals over a quarter. The price in € per sq m keeps climbing.
Hover over a city for context
The market is moving in two directions
In the first quarter of 2026 the number of property deals fell sharply in all the major cities. Varna reports –43%, Burgas –40%, Sofia –38% on the previous quarter. Year on year, the same Registry Agency (Агенция по вписванията) data gives smaller numbers: Varna –21.5%, Burgas –18.0%, Sofia –12.3%. The two comparisons are confused systematically, because headlines rarely say what the fall is measured against. At the same time, the average price per square metre keeps rising, which at first glance looks contradictory.
Why buyers stepped back
High prices and a limited supply of quality properties exhausted the pace of 2024–2025. Many buyers are waiting, not because they do not want to buy, but because they are negotiating more carefully and comparing more options before they sign.
Why prices are not falling
Mortgage rates remain historically low: 2.45% on average, the second lowest level in the eurozone (ECB, April 2026). Affordable credit keeps demand alive despite the smaller number of deals, and the limited supply of new properties in top locations does not allow prices to fall.
“We are seeing fewer deals, but each one is at a higher price; the market is consolidating around buyers who know what they want.”
The market by city
Varna and Burgas follow a similar pattern of cooling in volume, but the dynamics of construction differ: new permits have jumped by 34% compared with 2024, which shows confidence in the medium-term horizon despite the current slowdown.
The average mortgage rate in Bulgaria, the second lowest level in the eurozone. Affordable credit keeps prices rising, even with fewer deals.
What this means for buyers
Less competition at every viewing means a stronger negotiating position for serious buyers. If you have financing ready, this is a moment to act purposefully, rather than wait for a “bottom” that historical data does not show is coming.
The role of new construction
The increased number of permits in Varna and Burgas will bring supply over the next 18–24 months, which may gradually cool the pace of price growth, but not reverse it.
What comes next
We expect the volume of deals to stabilise towards the end of the year, while prices continue a gradual but steady rise. For buyers with a clear budget, the current moment offers a calmer negotiation process than the market did in 2024.
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