The real estate market is experiencing a renaissance, which experts increasingly describe with the term "the hidden gem of Europe." On the threshold of the Eurozone, Bulgaria is turning into a magnet for a new type of capital – and the Ukrainian factor plays a key, although often underestimated role.
The "Euro 2026" effect: Stability and trust
The main driver of this boom is undoubtedly the upcoming adoption of the euro on January 1, 2026. Data from the National Statistical Institute (NSI) for the second and third quarters of 2025 show an impressive increase in housing prices of over 15% on an annual basis – a pace that ranks our country in the top 3 of the EU in terms of property appreciation. Unlike previous bubbles, however, this time the growth is underpinned by real expectations for integration.
Investors from Western Europe see joining the Eurozone as a guarantee of stability and the elimination of currency risk. The psychological barrier falls – for a German or French fund, a market operating in euros is already a "domestic" market.
The Ukrainian factor: From refuge to investment
One of the most interesting phenomena of the market in 2024 and 2025 is the transformation of Ukrainian citizens from tenants to owners. According to data from leading real estate agencies, Ukrainians are already among the most active foreign buyers, especially along the Black Sea coast and in large cities such as Varna and Burgas.
Unlike the initial wave in 2022, when urgent shelter was sought, today's Ukrainian buyers are pragmatic investors. Many of them, who have decided to stay permanently in Bulgaria or to diversify their assets outside their homeland due to the continuing uncertainty there, are investing in quality properties. This not only supports price levels, but also stimulates the construction of modern residential complexes that meet higher standards.
The new geography of capital
The statistics on foreign direct investment (FDI) are particularly indicative. After years of dominance by Russian capital, which is now withdrawing due to sanctions and geopolitics, its place is taken by a colorful mix. Poland, Germany, Israel and Ukraine shape the new investor profile. This diversified market is much more resilient and healthy.
Interest in Sofia is also indicative. The capital, with prices still around 2,000 euros per sq. m., remains drastically cheaper than its Western European counterparts, but offers high rental yields, fueled by the IT sector and digital nomads. Ukrainian IT specialists, who have moved their business to our country, are an active part of this process.
Is there a bubble?
The question of the "real estate bubble" is inevitable. Yes, prices are rising ahead of incomes in some sectors. However, the affordability ratio in Bulgaria remains better compared to many Western capitals. Mortgage interest rates, although slightly increased, remain below 4% – levels that many Europeans can only dream of.
Conclusion
The boom in the real estate market in 2025 is not accidental. It is a reflection of confidence in Bulgaria's European path and the ability of the economy to integrate new participants. Ukrainian investments, along with the upcoming euro, turned out to be the "fresh blood" the market needed to move to the next level of maturity.
Summary: On the threshold of 2026, the real estate market in Bulgaria is breaking records. While the adoption of the euro attracts Western capital, an unexpected group of investors – Ukrainian citizens – is changing the rules of the game, turning the crisis into an opportunity for the Bulgarian economy.