Property prices and the incomes of DSK Bank customers will rise by about 8% in 2027, according to Plamena Toteva, managing director for mortgage lending at the bank. She gave the forecast at the 12th annual national conference of the National Real Estate Association at the Sofia Balkan Palace hotel in Sofia.
The forum is the main event in the estate agents' professional month. Experts, entrepreneurs, officials and foreign guests discussed the market, the profession, EU rules, the new generation of buyers and the use of artificial intelligence in agents' work.
Toteva said the number of mortgages issued since the start of the year is the same as last year's. What has changed is that more deals are paid for with a loan. Buyers of about 80% of properties in Sofia used a mortgage in the first 10 months. Across Bulgaria the share is over 40%.
Toteva expects mortgage lending to grow more slowly in 2027, by about 15%. She says this is healthy after the strong rise of recent years. Mortgages now make up 14–15% of gross domestic product, the value of the whole economy, after their share grew by about 10% over the past five years.
Mortgage rates may rise gradually by 20–30 basis points, or a few tenths of a percentage point. On an average loan, that means about €20–30 more a month. Toteva believes rates will stay fairly low and the rise will not hit borrowers hard.
If incomes and prices rise at a similar pace and rates do not jump, conditions for borrowers will not get much worse, she explained. The average income of a mortgage applicant in Sofia is about €4,000. Toteva expects Bulgarian rates to move closer to those in the eurozone in the medium term, but to stay below the average for the currency bloc.
Anton Andonov, chief executive of ERA Bulgaria, forecasts that property deals will fall by about 10% next year. The record of about 95,000 deals a year in 2024 and 2025 is above the usual average of about 75,000. Andonov does not rule out that the high levels will hold in the long term.
He says buyers who want an investment or a resale at a higher price are gradually leaving the market. More and more, it will be driven by people who need a home.
At ERA Bulgaria offices, about 30% of sales are usually in new buildings and 70% on the resale market. This year the share of new-build sales is expected to fall to about 20%.
Andonov says the reasons are more cautious buyers, high prices for new homes, long administrative procedures and cases where builders raise the price after a preliminary contract is signed. This adds to uncertainty, and customers prefer to wait until the building is finished.
The model in which building is paid for mainly with buyers' advance payments is slowly dying out. Andonov advises investors to rely more on bank or their own money, and on more flexible schemes with a down payment of 10% to 30%. He called on agents to adapt to the market, be more active and invest in their teams.
Hristo Angelkov, managing partner at Bulgaria Sotheby's International Realty, expects fewer investment purchases and more for personal and family use. After the strong year of 2025, the market is calming down and buyers are more careful and more precise, he said.
The fall this year is sharpest for cheap and mid-priced properties. Luxury deals continue, with buyers looking for prestigious locations for personal use. These deals close more slowly because clients research them more thoroughly. Some potential buyers are putting off their decision because they expect an economic crisis and lower prices.
Angelkov believes that with stable banks and no big rise in rates, the market will grow at a more normal pace. He says a luxury property is defined by its location, build quality, finishes and the services in the building. In Bulgaria, homes are still mostly handed over with just a putty coat and screed, while on international markets luxury properties are finished or can come with a separate interior design project.
In October 2026 we reported that property deals in Burgas were higher than at the start of the year but below 2025. Diana Ivanova of a local estate agency said prices held, mostly on the resale market.
Four projects for luxury branded residences in the top price class are in preparation in Sofia, and the homes in them will be sold fully finished. The projects will be announced once contracts are signed and building starts.