Sofia Housing Market Q1 2026: Prices Cool Slightly, Transactions Fall 12.3%

According to Bulgarian Properties — Newsletter/Market Reports, Sofia's residential market entered a new, calmer cycle in the first quarter of 2026 after two years of exceptionally strong price growth. The average price of actual transactions stood at €2,680/sq.m., slightly down from €2,790/sq.m. at the end of 2025, but still about 29% higher than the €2,080/sq.m. recorded at the start of 2025. The average final price of a purchased apartment reached €217,500, versus €150,000 at the beginning of 2025. Registry Agency data cited in the report show 7,529 transactions registered in Sofia in Q1, which is 12.3% fewer than a year earlier — the first decline since 2022–2023. The authors link this to peak sales in the preceding year and describe the market as returning to a more sustainable rhythm. Affordability has worsened: the company's ratio, showing how many average monthly salaries are needed to buy one square metre in Sofia, reached 1.4, a level typical of 2017–2018. Financing conditions remain supportive: according to the Bulgarian National Bank, the average rate on newly granted euro housing loans was 2.46% in Q1, and the volume of new housing loans to households grew by around 18% year-on-year. New construction still dominates, with around 70% of transactions in buildings under construction. In the mass segment, two-bedroom apartments made up 49% of purchases, one-bedroom 45% and studios 6%; the average size of homes sold was around 83 sq.m., with middle floors (5th–7th) preferred. In secondary-market deals, buyers are increasingly able to negotiate discounts of 3–5%. Buyers are also looking further out, with an acceptable commuting radius from Sofia widening to 30–40 km. Bulgarian Properties expects prices to keep rising, but at a slower pace of roughly 15% year-on-year, potentially easing to around 10% by the end of 2026; this is the company's forecast, not a guarantee.