site.btaFirst Half of 2026 Marks New Phase for Sofia's New Residential Construction Market: More Selective Buyers

Following an exceptionally active 2025, Sofia's new residential construction market has begun to normalize. Transactions are taking longer to close, the strongest pressure is being felt in the segment below EUR 250,000, and buyers are increasingly calculating not only the purchase price of a property but also mortgage costs, fit-out expenses and the total cost of their new home, according to an analysis conducted by New Estates, a company specializing in the sale of new construction residential properties.

The first half of 2026 marks a new phase for Sofia's new-build housing market. After the surge in purchases during 2025, demand remains strong, but buyers are taking more time to make decisions, conducting more viewings, comparing a wider range of projects and engaging in significantly more intensive negotiations.

In 2025, many buyers accelerated their purchasing decisions due to rising prices, expectations surrounding Bulgaria's accession to the euro area, and concerns that postponing a purchase would make home ownership even less affordable. In 2026, however, this momentum has weakened. According to the New Estates' analysis, genuine housing needs, household financial sustainability and the quality of individual developments have become the primary factors influencing purchasing decisions. The analysis is based on the company's transactions during the first half of 2026, comparisons with previous periods, and observations of customer behaviour throughout the property search and negotiation process.

The bulk of market activity continues to be concentrated in the broad mid-market segment. During the first six months of 2026, 54% of New Estates' sales were properties priced at up to EUR 300,000, while a further 29% were in the EUR 300,000 - 500,000 range. As a result, 83% of all transactions were completed at prices below EUR 500,000.

The EUR 500,000 - 1 million segment accounted for 8% of sales, while properties priced above EUR 1 million represented 9%. This distribution shows that activity is preserved across different price categories, although market dynamics vary.

The most noticeable slowdown has occurred among buyers with budgets of up to EUR 250,000. This segment has proven to be the most sensitive to higher price levels, with purchasing capacity closely tied to the availability and size of mortgage financing. Some buyers are postponing their decisions while reassessing their budgets, while others are temporarily turning to the rental market.

According to New Estates, around 70% of buyers of new-build homes intend to finance their purchase with a mortgage once the project receives the Structural Statement Act 14, the document for acceptance of the structure of the building. Thus, financial predictability has become one of the most important considerations when selecting a development.

During the first half of 2026, buyers viewed an average of six to seven properties before completing a purchase. In some cases, the search extended to 25-30 viewings. At the same time, only around 10% of buyers made significant changes to their original search criteria.

"The first half of the year shows that the market is not losing buyers, it is losing rushed decisions," New Estates Chief Commercial Officer Krassimir Dzhambazov said. "Buyers have a much clearer understanding of what they are looking for and expect prices to be justified by genuine quality. This is changing the balance of the market: investors now have to make a much stronger case for the value of their product."

One-bedroom and two-bedroom apartments continue to be top on the list of buyers. One-bedroom units remain popular among first-time buyers and investors, while two-bedroom apartments continue to be the preferred choice for families and people planning to live in the property over the long term.

However, buyers' definition of a quality property is evolving. Increasingly, they are looking beyond overall floor area and paying closer attention to usable living space, bedroom sizes, storage capacity, orientation, common areas and the functionality of the layout. While price per square metre remains important, functionality is becoming increasingly important.

Looking ahead to the second half of 2026, New Estates expects the market to remain active but not return to the pace seen in 2025. Decision-making is likely to take longer, while negotiations will continue to play a much more significant role in the transaction process.

The segment most dependent on mortgage financing is expected to remain the most sensitive to market conditions. Activity in the mid- and upper-market segments is likely to remain stable but increasingly concentrated in high-quality, well-positioned real estate.

According to the analysis, Sofia's new-build housing market is entering a period in which buyers enjoy greater choice and every property offering must earn their confidence. For investors, this represents a new reality: competitive pricing, product quality, functional design and the ability to deliver a complete, move-in-ready solution will become increasingly important factors in determining the speed of sales.