Bulgarian real estate market shifts toward modern housing demand

The Bulgarian real estate market is entering a new phase driven by homeowners seeking to replace aging properties with more functional and energy-efficient homes. Data from the National Statistical Institute indicates that over half of all dwellings in Bulgaria were built before 1990.

In Sofia, the impact of aging infrastructure is particularly notable. According to SORENDA Real Estate, approximately 37% of the capital's housing stock consists of panel or EPC construction that is more than 30 years old. Evgeni Vasilev of SORENDA Real Estate noted that while this stock remains usable, it represents a significant potential source of future demand for new construction as households prioritize comfort and efficiency.

Market statistics for the first quarter of 2026 in Sofia show a shift in demand structure. While total real estate transactions fell by 12.3% compared to the same period the previous year—with 7,529 deals recorded—contractual mortgages increased by 1.7% year-on-year, reaching 3,948. This suggests that while speculative interest may be weakening, demand remains active among those with genuine residential needs and long-term investors.