Only 27 out of 100 real estate transactions in Bulgaria involve mortgage loans

In 2024, the real estate market in Bulgaria registered a significant rise, with prices increasing by around 16%, and the number of real estate transactions going up as well.

• Real estate prices along the Black Sea coast have continued to grow, though more gradually 

“One feature of the Bulgarian market is that banks have a more limited effect than they do in Western Europe,” says Yordan Yordanov, managing director of a real estate agency, BNR’s Natalia Ganchovska reports. “According to official data, over the past 10 years, only 27 out of 100 transactions have involved taking out a mortgage loan, the rest have taken place using ready money, which is indicative of the specific structure of the Bulgarian market. Unlike Bulgaria, in countries like Germany, the UK, the US, Canada and other countries, 80-90% of all transactions make use of mortgage loans,” Yordan Yordanov says.  

According to Bulgarian National Bank data, interest on home loans in Bulgaria is among the lowest in Europe, ranging from 2.1% to 3.6%.