Housing prices in Bulgaria have been increasing at a steady and often double-digit pace in recent years, driven by strong demand and by the expectation that the country will soon join the eurozone. According to the real estate platform Zimoti.com, this dynamic is likely to shift once the euro is introduced. The sense of urgency among buyers is expected to ease, reducing the pressure that has been pushing prices upward. Irina Tsanova, CEO of the platform, notes that the gap between what sellers hope to receive and what buyers are prepared to offer remains wide at the moment, largely because of the transitional period before accession. Her expectation is that this difference will gradually narrow after the change of currency.
Tsanova forecasts that 2026 could bring more properties to the market. Many owners who have postponed selling until after the euro’s adoption may finally decide to list their homes. With more supply available, price increases are likely to lose their double-digit pace and settle closer to five to ten percent growth annually.
A possible rise in real estate taxes is also being discussed as Bulgaria prepares to align with the rules applied across the eurozone. A higher tax burden could encourage some investors to sell, adding further supply. Changes tied to mortgage lending are expected as well, as Bulgarian banks will shift to requirements set by the European Central Bank. This transition may slightly push mortgage interest rates upward. The average interest rate on housing loans in the eurozone is around 3.3 percent, while in Bulgaria it is roughly 2.4 percent. The exact effect will depend on which reference index banks adopt. More than 80 percent of mortgages in Bulgaria are linked to leva-based deposit indices, which will be discontinued once the euro is introduced. Lenders will either move to Euribor, which responds to broader international trends, or develop a domestic euro-based index that would better reflect local market conditions.
In the longer run, analysts believe that the market will shift away from rapid expansion and move toward steadier, more balanced growth. Buyers are expected to place greater emphasis on quality, choosing homes with strong locations, good energy performance and long-term financial reliability.