High housing prices have pushed about a fifth of potential buyers out of the market

High housing prices in Bulgaria have driven around 20% of potential buyers out of the market over the past year, Miroslav Vladimirov, a board member of a real estate brokerage, told Bulgarian National Radio, Novinite reported on 23 October.

Vladimirov said property prices were still rising by about 14% to 15% year on year at the end of the second quarter, in line with 2024 and 2025. If the decline in transaction numbers continues, he expects annual price growth to slow to between 3% and 7%, and Novinite's report put the expected range for 2027 at 5% to 7%.

The number of property transactions has fallen by 14,086, with the decline starting in the last quarter of 2025 and continuing through the first two quarters of 2026. Vladimirov put the year-on-year fall at about 17% to 18%. Over the previous five years, transaction numbers had been relatively stable while prices rose significantly.

Prices are still increasing because demand has not dropped enough to push them down, and mortgage affordability remains relatively high, he said. The mortgage market is what is sustaining current transaction levels. The buyers who have stepped back are mainly those who planned to use their own savings and are not prepared to pay current prices.

Vladimirov expects households to become more cautious and less willing to take risks, and said prices could undergo a correction if transaction volumes keep falling. He also forecast a modest rise in mortgage interest rates, below one percentage point.

Meanwhile, sellers are still asking for prices similar to last year, so properties are staying on the market for longer. For developers, that combination of slower sales and firm asking prices makes the pace of new launches and the pricing of off-plan projects an important point to watch in 2027.