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The property market has calmed down

Tuesday, Jun 02, 2026

After 2 years of extremely strong price growth, limited supply and euphoria fueled by the expected introduction of the euro, the housing market entered a new cycle in the first quarter of 2026.
The period is characterized by available demand, but also by more moderate activity, as buyers and sellers reconsider their behavior.
The market changed already at the end of 2025, when the first signs of a falling volume of transactions were felt, but then it was combined with accelerated price growth before entering the eurozone. In the first months of 2026, in addition to a decline in the number of transactions, we are witnessing a slowdown in the rate of price growth and an increase in supply.
The market continues to be supported by favorable conditions for mortgage lending. Housing loans in euros offered by commercial banks retain the conditions that previously existed for lev loans. At the same time, the volume of new housing loans granted to households in the first three months of the year continues to grow.
The continued influx of new projects, low mortgage rates and rising incomes will have a positive impact and will keep market activity, albeit at lower levels. At the same time, wars, geopolitical tensions and inflationary pressures are factors that will limit demand and keep market participants cautious.
Prices will continue to grow, but the pace will slow to moderate double-digit growth - approximately 15% on an annual basis, and by the end of the year it may drop to 10%. This is a result of the combination of stable domestic demand and rising incomes, which still maintain interest in properties as a safe investment. At the same time, higher prices and increased supply will cool speculative expectations.
For buyers, this means that 2026 could be a year for more thoughtful and informed transactions. Those with ready resources will have the opportunity to choose from a wider range of properties and locations.
We recommend that sellers comply with market levels and focus on quality presentation of their properties, as buyers' requirements are increasing.
After joining the eurozone, there has been a moderate increase in interest from foreign buyers, which may bring new optimism to the market.

Source: fakti.bg