🏘️ Bulgaria’s residential real estate market is showing a noticeable shift: in Sofia and other major cities, housing supply has exceeded demand for the first time in 12 years. According to Address Real Estate, as reported by Fakti.bg, the market is moving out of a long period in which sellers had a stronger negotiating position, while buyers competed for a limited number of available properties.

💡 The key market signal is the simultaneous decline in the number of new buyers and the rise in the number of sellers. In early 2026, the number of new buyers decreased by around 10%, while the number of new sellers increased by approximately 26% year-on-year. This changes the mechanics of the market: limited supply is no longer the main factor supporting transaction activity.

What the current statistics show:

— housing supply in Sofia and major cities has exceeded demand for the first time since 2014;
— the number of new buyers has decreased by around 10%;
— the number of new sellers has increased by approximately 26% year-on-year;
— transactions in Bulgaria’s four largest cities have declined by around 12–17%.

🏙️ Sofia remains the most resilient market, with a more moderate decline in transactions of around 10%. In Plovdiv, Varna, and Burgas, the slowdown in activity is more noticeable. At the same time, prices have not yet shown a downward reversal. According to Address Real Estate, two-bedroom apartments in Sofia rose in price by around 17% year-on-year, while three-bedroom apartments increased by almost 22%. In Varna, price growth for certain types of housing reached 21–24%.

🏦 Another important factor was Bulgaria’s transition to the euro on January 1, 2026. Before the country joined the eurozone, some buyers aimed to invest capital in real estate in advance, expecting further price growth and greater financial stability. Now that this stage has passed, the market is gradually losing part of its impulse-driven demand and is becoming more dependent on buyers’ real incomes, property quality, and liquidity.

How the shift in market balance will affect the market:

— overpriced properties will remain listed for longer;
— standard apartments without a strong location or quality renovation will face tougher competition;
— buyers will negotiate more actively and compare offers more carefully;
— the most liquid apartments in good locations will maintain demand, but transactions will take longer to close.

⏱️ For buyers, this new phase means more comfortable conditions. In previous years, many decisions were made quickly due to the fear of missing out on a property. Now, the average transaction cycle is becoming longer. According to Address Real Estate, a buyer needs around 10 viewings, while the overall process takes approximately 2.5 to 3 months. Discounts remain moderate, usually in the range of EUR 2,000–4,000, but the opportunity to negotiate has become noticeably stronger.

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