site.btaMany Potential Tenants in Bulgaria Consider Buying a Home, NREA Data

More and more potential tenants with good incomes are considering buying a home, taking advantage of more favourable conditions for housing loans, which has caused rental prices to remain stable at the beginning of this year. This is according to the National Real Estate Association (NREA), which brings together over 2,500 experts in the field.

“In 2024, Sofia saw a more than 24% increase in rental prices per square metre, but in 2025, this upward trend stopped," said Angelina Dobreva, owner of RealNet and member of the NREA.

The association reports that buying a home in Sofia is currently faster than renting one out, which is a rare trend. Despite this dynamic, the summer season traditionally brings a revival in the residential rental market in large cities, and NREA forecasts a peak at the end of summer and beginning of autumn.

The main drivers of the upcoming seasonal activity in the rental market will be internal migration, mainly students (Bulgarian and foreign) and young families looking to change their place of residence in relation to the locations of schools and kindergartens. The NREA expects the market to remain highly competitive for tenants, while landlords will take advantage of opportunities for quick deals at good rental prices.

For long-term rentals (for a period of one year or more), the most preferred locations remain the central areas of large cities, proximity to universities or large business centres, as well as convenient transport access. Apartments in residential properties, regardless of their size or layout, are the most actively traded on the market.

There has been no significant increase in interest from foreigners or digital nomads. On the other hand, there is growing demand from Bulgarians returning from abroad, who are increasingly looking for long-term rentals before eventually buying a property.

“The rental market is at an interesting point—we expect the summer and fall seasons to bring a new wave of activity, especially in university and family-oriented areas of large cities,” Dobreva said. “Despite the reported decline in demand at the beginning of the year, the rental market remains stable and offers good opportunities for both tenants and owners,” she added.

Housing loans have been growing rapidly in recent years. At the end of May, housing loans reached BGN 28.222 billion, representing a 26.7% increase on an annual basis. The average interest rate on new housing loans agreed in BGN in May reached 2.43%, according to data from the Bulgarian National Bank.