Bulgaria's property market sees 18% drop in transactions, prices could fall up to 30%

Transactions in Bulgaria’s real‑estate market fell sharply in 2026, with a 15.5% decline in the first quarter and a 17.9% drop in the second quarter, amounting to an overall contraction of about 18% year‑on‑year. The slowdown affected all regions: Sofia saw a 16.7% reduction, Burgas a 23.7% fall and Plovdiv a 6.7% decline.

Around 54% of sales involved seller discounts of 2%‑10%, while mortgage‑financed deals rose 5.5%, lifting the share of credit‑backed transactions to roughly 74% of total sales. Financial analyst Max Baklayan warned that the long‑running price surge is ending and that house prices could drop 20%‑30% between 2027 and 2029, even though listed prices remain stable.

The market shift is reflected in slower buyer decisions, more price negotiations and growing reliance on mortgage financing, signaling a cooling phase after years of rapid growth.