Housing
The Residential Property Market
Home prices in Bulgaria rose by 15.5% in the year to mid-2026. Wages are growing by about 10% a year and new mortgages cost about 2.5%, so demand for flats in the big cities is strong.
- Average asking price per m² for new builds in Sofia, excl. VAT
- €2,0702
- Average asking price per m² for new builds in Sofia, excl. VAT
- Average asking rent for a two-bedroom flat in Sofia
- €9054
- Average asking rent for a two-bedroom flat in Sofia
Prices
| Q2 2026 on a year earlier | +15.5% |
|---|---|
| Q2 2026 on the previous quarter | +4.5% |
| Q1 2026 on a year earlier | +14.8% |
Source: BTA: Home prices up 15.5% a year in Q2 2026 (NSI)1
Source: BTA: Home prices up 15.5% a year in Q2 2026 (NSI)1
Prices in Burgas fell by 1.5% in the quarter.1
New flats in Sofia
| Average asking price | €2,070 per m², excluding VAT |
|---|---|
| Flats under construction for sale | 7,630 |
| Finishing, on top of the price | About €500 per m² |
Source: BTA: 7,630 apartments under construction for sale in Sofia (Colliers); Vesti.bg: The real price of a new home in Sofia2,5
Most new flats are sold at the shell-and-plaster stage, before kitchens, floors and bathrooms are fitted, so budget for finishing.5
Renting
Two-bedroom flats in Sofia were listed at about €905 a month on average in October 2026, or €9.21 per m². Agreed rents are often a little lower; new buildings in central districts such as Lozenets and Oborishte cost more.4
Rental income of individuals is taxed at 10% after a 10% allowance for expenses, an effective 9% of the rent.6
Costs of buying and owning
| Transfer tax | 0.1% to 3%, set by each municipality |
|---|---|
| Registration in the Property Register | 0.1% |
| VAT | 20% on new buildings from a VAT-registered developer |
| Annual property tax | 0.01% to 0.45% of the tax value, plus a waste fee |
Source: RSM Bulgaria: Real estate tax factsheet 2026; Deloitte: International Tax, Bulgaria Highlights 20266,7
Who can buy
- Anyone can buy a flat or a building.
- Citizens and companies of the EU and EEA can also buy land, including the plot under a house.
- Buyers from other countries can hold land through a Bulgarian company.
- Buying property does not by itself give the right to live in Bulgaria; non-EU citizens need a visa and residence permit.
Source: European Land Registry Association: Bulgaria, limitations to foreigners; EU Immigration Portal: Investors in Bulgaria8,9
Frequently Asked Questions
How much have home prices risen in Bulgaria in 2026?
Home prices in Bulgaria rose by 15.5% in the year to Q2 2026 and by 4.5% from the previous quarter. The year-on-year increase was 14.8% in Q1 2026.
How much do new flats cost in Sofia?
The average asking price for new-build flats in Sofia is €2,070 per m², excluding VAT. Budget about €500 per m² for finishing, as most new flats are sold at the shell-and-plaster stage.
What is the average rent for a two-bedroom flat in Sofia?
The average asking rent for a two-bedroom flat in Sofia was about €905 a month in October 2026, or €9.21 per m². Agreed rents are often a little lower, while new buildings in central districts such as Lozenets and Oborishte cost more.
What is the average mortgage rate in Bulgaria in 2026?
The average rate on new housing loans in Bulgaria was 2.46% in Q1 2026. Wages were growing by about 10% a year.
What taxes and fees apply when buying property in Bulgaria?
Property buyers in Bulgaria pay transfer tax of 0.1% to 3%, depending on the municipality, and a Property Register fee of 0.1%. VAT is 20% on new buildings from a VAT-registered developer; annual property tax is 0.01% to 0.45% of the tax value, plus a waste fee.
Can foreigners buy property in Bulgaria?
Anyone can buy a flat or a building in Bulgaria. Citizens and companies from the EU and EEA can also buy land, including the plot under a house; buyers from other countries can hold land through a Bulgarian company. Buying property does not by itself give the right to live in Bulgaria, and non-EU citizens need a visa and residence permit.
Sources
- BTA: Home prices up 15.5% a year in Q2 2026 (NSI)
- BTA: 7,630 apartments under construction for sale in Sofia (Colliers)
- Bulgarian Properties: Sofia housing market in Q1 2026 (BNB mortgage data)
- imot.bg: Two-bedroom flats to rent in Sofia, average of current listings
- Vesti.bg: The real price of a new home in Sofia (in Bulgarian)
- RSM Bulgaria: Real estate tax factsheet 2026 (PDF)
- Deloitte: International Tax, Bulgaria Highlights 2026 (PDF)
- European Land Registry Association: Bulgaria, limitations to foreigners
- EU Immigration Portal: Investors in Bulgaria
Figures checked 13 October 2026. Prepared by InvestBulgaria for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.
