“The housing market in Bulgaria is currently catalyzed mainly by transactions in large cities, with activity in smaller ones significantly declining. We continue to observe internal migration to Sofia from Plovdiv, Stara Zagora, Burgas and Blagoevgrad, to Varna from Targovishte, Dobrich, Shumen, Razgrad and Silistra, as well as to Plovdiv from Kardzhali, Haskovo, Sofia, Smolyan and Stara Zagora, even Veliko Tarnovo”, commented Yavor Peychev, executive director of the "Imoteka" agency.
Credit remains a fundamental factor in the market, the company also points out. The share of transactions with external financing in Sofia increases to 61% in 2024 from 57% in 2023. Nearly half of these buyers also use larger loans – 48% of them cover more than half of the final value of the transaction with a loan. The situation in Plovdiv is identical – clients with loans have increased to 65% in the past 12 months compared to 2023, when their share was 56%.
“People are taking advantage of the growth in the average salary, cheap loans and decreasing unemployment. They are taking out significant loans that cover a large part of the price of the property. A very large part of them are young people in high positions, most often from the IT sector, but also from the health sector, administration, trade, insurance and consulting business, energy”, commented Peychev.
The picture is different only in Varna. A total of 37% of transactions in the Sea Capital are with loans. The savings of people in the city are in cash and they invest them more quickly in a safe property.
In Sofia, the largest share of buyers is between 30 and 39 years old - they represent 32% of all. People between 40 and 49 years old occupy 29% of all, and the youngest - from 18 to 29 years old, are 16% of all buyers for 2024. Clients over 50 years old make up a share of 24%, according to Imoteka data.
The profile of the sought-after property in the capital remains almost unchanged. The most desired are two-bedroom, three-bedroom apartments and houses in villa areas and populated satellite villages and towns. Detached houses with a yard of at least 500 sq m are particularly popular, while row houses are not among the first desires of buyers. The top floors, penthouses with a large terrace and city view in all three cities, as well as maisonettes are now particularly in demand. Trophy properties in the high segment continue to be in the focus of clients. Fully finished, furnished apartments take a significant lead in the preferences of clients, as most of them do not want to invest additional financial and time resources after the conclusion of the deal.
Property profile
23% of the company's clients buy for investment. The most preferred neighborhoods for purchase in Sofia for this purpose are Malinova Dolina, Ovcha Kupel, Manastirski Livadi, Center and surrounding areas such as Banishora. Investment-minded buyers are also interested in Mladost and Krastova Vada, as well as all areas near universities and metro stations.
Clients looking for a home for their own use in the capital focus on Manastirski Livadi, Borovo, Hipodruma, Gotse Delchev, Lozenets, Mladost and Krastova Vada. Buyers with more limited budgets are also considering the new projects in Lyulin and Moderno Predgradie.
In Plovdiv, the preferred neighborhoods for investment are Mladezhki Hill, VMI, Smirnenski, Shirok Tsentar, Ostromila, Gagarin, Belomorski. Buyers are also looking for places to live in Smirnenski, but also Karshiyaka, Trakia, the areas along the Southern Arc and the Rhodope Collar, where there is an active house market.
In Varna, the popular neighborhoods for investment are Pchelina, Vladislavovo, Kaysieva Gradina, Izgrev and Vinitsa. Preferred areas for living are St. St. Constantine and Elena, Trakata, Chaika, Summer Cinema Trakia, Levski, Pobeda and Vazrazhdane. There are also clients who are looking for plots of land for building a house for their own use. They prefer Borovets, Mentesheto, Dobreva Cheshma.
Detailed statistics on the average prices of properties in Bulgaria by city and neighborhood can be seen HERE