site.btaShare of Housing Transactions with Buyers' Own Funds in Sofia Increase by End 2025

The share of housing transactions made with buyers' own funds in Sofia increased in the last months of 2025, the annual review of the housing market by the Imoteka real estate company, received Thursday by BTA, said. If in the middle of the year, about 30% of purchases in the capital were made without assistance from a financial institution, by the end of the year they accounted for about 45% of all purchases. The situation in Plovdiv is identical, the review added, mortgages are decreasing compared to the beginning of the year, although they still account for a key share of transactions.

"The introduction of the euro acted as a serious catalyst for some buyers and prompted them to invest their savings, regardless of their size, in real estate. This step gave them confidence that their funds were protected from possible uncertainties such as changes in banking conditions, for example. An additional factor was the expectation for a real estate price increase after the introduction of the euro, supported by the experience of other eurozone countries. This is reflected in more cash transactions, but dependence on bank lending is yet to become apparent in Bulgaria," Imoteka CEO Yavor Peychev said.

According to him, the stricter measures taken by banks at the end of the year managed to filter out some of the buyers who did not have enough money for their own contribution. This also caused the partial calming of the market that occurred at the beginning of autumn. This trend is set to continue in 2026, people with savings and secure and stable incomes will be on the real estate market. The personal need for a home will play a key role in the decision to buy. 

Sofia: two-room and three-room apartments dictate the market

Imoteka’s data shows new price increases. In Sofia, this is most noticeable in two-room and three-room apartments, whose price has increased by about 20% on an annual basis. Around 10% is the price increase of one-bedroom and multi-bedroom apartments. 

"In a dynamic market, preceded by expectations of a slowdown, it is logical that real estate with higher liquidity is in demand. Good location two- and three-room apartments will always remain the focus of both buyers for personal use and investment. This has made the market much more active and prices higher," Peychev added. 

The introduction of the euro is also among the reasons for the slight increase in investment purchases during the period, according to the company's review, from 21% in 2024, to 25% in 2025. This is again due to people's desire to ensure their money's safety in case of unforeseen circumstances. On the other hand, people's desire to acquire real estate is also a result of the general psychological attitude that this type of investment is safe and conservative. 

The share of newly built real estate purchases in Sofia is also increasing, accounting for about one-third of all transactions in 2025, according to Imoteka. For many buyers, it was their first choice because of the high quality of construction, but also because of the possibility of more flexible payment plans. In the context of the tightening of bank lending, newly built homes often offer greater predictability in terms of price and payment stages, the company said. 

"People who had the funds for self-participation remained active in the market until the end of 2025. Demand remained higher than supply, which in practice left no room for negotiation, except in cases when the declared price was above market prices. We are yet to see whether and to what extent the coming months will bring a balance between supply and demand," Peychev said. 

The predominant age group of buyers in Sofia in 2025 was 40 to 49 years old. These customers are mainly employed in finance, trade, IT, healthcare, and logistics. In the last months of 2025, deals were concluded after a larger number of viewings, about 8. The reason being the desire to choose the optimal property, to not make a mistake, driven by the general euphoria. 

The average size of homes sold at the end of the year decreased compared to the beginning of the year. While in the first six months it was around 115 square meters, by October-December it had shrunk to 100 square meters. According to experts, this is due to growing interest in investment purchases. 

"The decrease in average size reflects customers' focus on smaller homes with greater liquidity. There is also another group of buyers who have decided to invest their money in real estate, but without compromising on quality and location. Thus, the interest in smaller apartments in Sofia has been restored," Peychev said. 

Varna: increasingly younger buyers

Prices in Varna rose by an average of 17% in 2025. Unlike the capital, the increase is evenly distributed among all types of real estate. The most popular neighbourhoods among customers remain Izgrev, Vinitsa, Vladislavovo, Kaisieva Gradina, Levski, and Chaika. 

Mortgage deals in the seaside capital account for about 40% of all transactions, with the value remaining identical to the 2024 figures, according to Imoteka. However, more than half cover over 80% of the sales price. The remaining 60% of purchases are made in cash, with a negligible proportion of buyers in Varna resorting to consumer credit. 

Just over 20% of the purchases in 2025 are for investment purposes. The share of transactions for newly built real estate is the same. As in 2024, Varna customers, in addition to traditionally looking for two- and three-room homes, are also focusing on multi-room apartments. 

"Purchases in Varna, mainly those for investment purposes, have a broader purpose than those in Sofia, for example. The main reason is that some of them are seasonal due to the tourist nature of the destination. The profile of multi-room homes suggests a good return on investment, as they offer more flexible options for summer vacations for the whole family," Peychev said. 

Buyers in Varna are getting younger, according to Imoteka's data. While in the first half of the year, as well as throughout 2024, the average age of the customer was 40-45, in the second half of 2025, the average age dropped even further. For the period July-December 2025, the average customer is 36 years old. Their fields of employment are identical to those in the capital, with shipping being an additional segment for buyers in the seaside city. 

Plovdiv: the city of mortgages 

Plovdiv remains the city that leads the rest in terms of mortgage lending. And although the share of purchases with external financing fell by 10 percentage points in the second half of 2025 compared to the first, they continue to account for half of the entire market, according to Imoteka. 

Investment transactions remain largely unchanged on an annual basis, at just over 20%. The newly built real estate market is becoming increasingly active in Plovdiv, accounting for 15% of transactions in 2025. New real estate projects are most actively under construction in the Smirnenski, Zapaden, Grebna Baza, and Ostromila areas. Transactions dynamics are also visible in the Kyuchuk Paris and Belomorski boroughs. The most desirable neighbourhoods remain Trakiya and Karshiyaka. 

The active market for houses in the city and surrounding areas continues, according to the company. Transactions for houses account for about 12% of all transactions during the period under review. The areas of Rodopska Yaka (hilly area south of Plovdiv) and Yuzhna Daga remain popular. 

The average age of buyers in Plovdiv in 2025 is 40, and they are mainly employed in the fields of trade, finance, and logistics. Plovdiv customers are also the fastest to close deals compared to those in other large cities. On average, deals in the city are closed after four viewings in 2025, while in Sofia and Varna, buyers need six to ten viewings, according to Imoteka.