Bulgaria’s property market is booming in 2025. Affordable prices, EU growth, and foreign investor interest are turning the country into Europe’s most promising real estate destination

For years, Bulgaria has lived in the shadow of bigger European real estate players like Spain, Portugal, and Greece. But as of 2025, that’s changing. The country once known primarily for its Black Sea resorts and affordable ski holidays is now emerging as Europe’s hidden real estate gem — a market combining affordability, stability, and opportunity.

According to the latest data from the National Statistical Institute (NSI) and Eurostat, property prices in Bulgaria grew by 11.6% year-on-year in 2024, outpacing many Western European countries. Yet the average price per square meter in Sofia, the capital, remains under €1,600, compared to more than €5,000 in Paris and over €7,000 in London.

This rare combination of low entry prices and rising demand has drawn attention from investors across Europe and beyond — particularly from the UK, Germany, Israel, and Scandinavia.

From undervalued to unstoppable

Until recently, Bulgaria’s property market was considered niche — appealing mainly to bargain hunters. Today, the narrative is different.

Foreign buyers are no longer just chasing cheap seaside apartments; they’re investing strategically in urban centers, ski resorts, and even rural properties for long-term rental income. The reasons are clear: Bulgaria offers EU membership, a stable banking system, low taxes, and a growing digital economy.

As London-based investor Michael Hughes put it in a 2024 interview for Financial Times:

“Bulgaria is where Spain was 25 years ago. Prices are realistic, the quality of life is excellent, and the returns are better than in most of Europe.”

Sofia: The capital of opportunity

The city of Sofia has become the heart of Bulgaria’s property boom. With a population of 1.3 million and a growing tech ecosystem, it attracts both local professionals and foreign entrepreneurs.

The rise of remote work and digital nomadism has transformed the rental landscape. Young professionals from across Europe are choosing Sofia for its affordability, fast internet, and dynamic cultural scene. Neighborhoods like Lozenets, Manastirski Livadi, and Studentski Grad are seeing record demand.

Rental yields in the capital currently average 5.5–6%, significantly higher than in many Western European cities. According to Imoti.com, the most popular property segment in 2025 is two-bedroom apartments between €120,000 and €180,000 — ideal for long-term rentals or Airbnb listings.