The Real Estate Market in Bulgaria: Are We Moving Towards Normalization or a Serious Price Correction?

The Bulgarian real estate market is entering a period of uncertainty, with key indicators for its future development becoming clear by the beginning of 2027. According to real estate investor Ivo Dimovski, the market is striving for a normalization of volumes, attempting to return to the levels seen five years ago when prices were more stable.

Currently, a paradoxical situation is being observed: while the number of concluded transactions reports a significant decline (by 18% in the second quarter), asking prices are not falling at the same speed. Nevertheless, brokers are already starting to offer discounts, which is an early signal of change.

Buyer's market and challenges for the low segment
Dimovski notes that we are currently in a "buyer's market." Investors who have hesitated so far due to high inflation are in a waiting position. At the same time, a withdrawal from the low segment of the market is expected, as people's disposable income after debt servicing becomes increasingly limited.

Indicators of stagnation
One of the most critical indicators of the current situation is the time it takes to sell a property. The average realization period has increased significantly—from the previous 25-35 days to the current 50-80 days, confirming the onset of stagnation.

Future scenarios: Plateau or correction?
At the beginning of next year, it will be clear whether the market has reached a "plateau" or will continue with a price correction. If the decline in transactions deepens, there is a risk of a serious correction, which could attract institutional investors and funds. So far, however, low credit interest rates in banks and their stricter policies act as a stabilizer, keeping prices at relatively normal levels.