Forecasts for 2025 in the Real Estate Market in Sofia and the Country

For a long time, Bulgaria has been anticipating the adoption of the euro, and 2025 is the year when the country will begin a gradual transition to the euro. Why are we sharing this information, and does it affect the real estate market? Naturally, the answer is, "Yes, it affects the market." The expectations of our real estate company, YOHOME, are that property prices will gradually increase by up to 15-17% compared to the previous year. This is not solely related to the adoption of the euro but is also connected to the rising costs of construction materials, as well as the new increase in the minimum wage in the country starting January 1, 2025. Labor costs have risen by over 25% compared to the previous year, and this also impacts the market. Additionally, there is a growing interest among buyers who prefer to invest their available funds in real estate, with a significant percentage of buyers directing their resources toward new projects or so-called "off-plan" transactions.

What we at YOHOME Real Estate anticipate as possible scenarios is that in 2026, when the country fully transitions to payments in euros, the market may experience three to six months of uncertainty. During this adaptation period, the real estate market in Bulgaria will likely remain at a fluctuating level, and there may be interesting and unforeseen deals due to the lack of the significant interest in properties that we observe today.