How will the transition to the euro affect real estate prices in Bulgaria?
From January 1, 2026, Bulgaria officially became part of the eurozone, completing a long path of integration into the pan-European financial system. The decision of the EU Council of Finance Ministers, adopted in July 2025, fixed the final exchange rate: 1 euro = 1.95583 Bulgarian leva. This step is of strategic importance for the country’s economy and will undoubtedly affect the real estate market, which has been demonstrating steady growth for several consecutive years. Let us consider what changes can be expected after the introduction of the euro, based on current market indicators and analytical forecasts.
Current state of the real estate market
At present, Bulgaria remains one of the most affordable countries in Europe in terms of housing prices. Average prices per square meter in key locations are as follows:
Major cities:
- Sofia - from 1,600 to 2,400 €/m², with an average level of around 2,000 €/m².
- Varna - approximately 1,630-2,000 €/m².
- Burgas - in the range of 1,340-1,750 €/m².
Resort areas:
- Sunny Beach - 800-1,200 €/m².
- Sozopol - on average 1,400-2,000 €/m².
In 2024, the market showed particularly strong growth: according to the National Statistical Institute, in the fourth quarter housing prices increased by 18.3% compared to the same period in 2023. One of the key reasons was Bulgaria’s accession to the Schengen Area in spring 2025, which strengthened interest from foreign buyers.
How the transition to the euro may affect prices
The introduction of the single European currency may have a multidirectional impact on the real estate market - much will depend on economic dynamics and investor reactions.
Growth in investment attractiveness
Membership in the eurozone increases the level of trust in the country among foreign buyers. The elimination of currency risks and simplification of payments may lead to increased demand for housing. According to analysts’ estimates, in the first two years after the transition, investor interest may grow by 10-15%, especially in the capital and resort areas. This could trigger a price increase of 5-10% by mid-2026.
Increase in construction costs
The use of the euro may also affect construction costs. Materials and services imported from eurozone countries may rise in price by 5-7%, which will be reflected in the cost of new properties. As a result, prices for new developments could potentially increase by 8-12% within the first year after the introduction of the euro.
Inflation risks
As in other countries, the transition to a new currency may be accompanied by a short-term inflationary effect. In the first months of 2026, this could lead to an additional increase in real estate prices within 3-5%, as developers and sellers factor in the possible costs of the adaptation period.
Housing affordability for the population
For foreign buyers, the market will become more understandable and transparent, but for local residents the situation may become more challenging. If income growth does not keep pace with rising prices, demand from Bulgarian citizens may temporarily weaken. Nevertheless, this factor is most likely to be offset by an inflow of foreign capital.
Outlook for 5-10 years
In the long term, the introduction of the euro may lead to a convergence of Bulgarian real estate prices with those in other eurozone countries - for example, Romania or Croatia, where the price per square meter already reaches 2,000-2,500 euros. According to forecasts, by 2030 in cities such as Sofia and Varna, prices may rise to 2,500-3,000 €/m², which means an increase of 25-30% compared to current levels.
Regional specifics
- Sofia - as the financial and business center of the country, may show the most noticeable growth: up to 15% in the first year, especially in prestigious districts.
- Varna and Burgas - resort and port cities, where prices may increase by 10-12% due to tourist and investment demand.
- Plovdiv, Bansko and other smaller cities - more moderate dynamics, approximately 5-8%, while maintaining stable local interest.
Bulgaria’s transition to the euro on January 1, 2026, will be an important factor in transforming the real estate market. Short-term price growth appears almost inevitable, but it may be partially smoothed by government inflation control measures and population support programs. For investors, the current period represents a favorable window of opportunity: purchasing property before the end of 2025, especially at early stages of construction, allows locking in the current price and potentially gaining additional benefits in the future. At the same time, it is important to take into account the accompanying risks - inflationary processes and possible changes in tax regulation.