COVID’s Impact on Bulgarian Real Estate Preferences

Published on October 3, 2025 and written by Cyril Jarnias

Bulgaria’s real estate market has undergone a striking transformation following the COVID-19 pandemic, prompting buyers to reconsider their priorities and selection criteria. Accustomed to urban apartments, many Bulgarians now have an increased desire for more spacious areas, favoring suburban homes or rural properties for a wellness-oriented lifestyle. The demand for multifunctional housing that accommodates work-from-home activities has significantly increased, revealing a new trend toward adaptation and flexibility in the real estate market. While property values in major cities continue to evolve, Bulgaria stands out with unique opportunities hidden within its picturesque natural landscapes and less densely populated regions.

Pandemic Impact on Bulgaria’s Real Estate Market

Pandemic Impact on Bulgaria’s Real Estate Market

The COVID-19 pandemic has profoundly transformed Bulgaria’s real estate landscape, leading to significant changes in market trends. Contrary to initial expectations of a collapse, the sector has demonstrated remarkable resilience, with sustained price growth and evolving buyer preferences.

In the second quarter of 2024, Bulgaria’s national property price index recorded an impressive 15.11% increase compared to the previous year. This rise, one of the largest since 2008, demonstrates the market’s strength despite pandemic-related challenges. New home prices saw a particularly notable increase of 15.6%, while existing property prices rose by 14.81%.

Evolution of Buyer Demand and Preferences

The health crisis has led to a noticeable shift in purchasing behavior. There’s growing interest in properties offering more space located in less densely populated areas. Buyers are now seeking homes suitable for remote work, with outdoor spaces and proximity to nature.

Black Sea resorts and mountain regions have seen increased attractiveness, drawing both local and foreign buyers. Cities like Varna recorded a 6% transaction increase in the first quarter of 2020 compared to the same period in 2019, despite pandemic restrictions.

Real Estate Boom in Major Cities

Sofia, the capital, has experienced spectacular price growth, with a 70.68% increase between 2015 and the third quarter of 2021. This rise was particularly pronounced in the existing housing sector, where prices climbed 72.61% during this period. By 2024, older properties became scarce in Sofia’s city center, with new construction prices ranging between €3,000 and €4,500 per square meter.

Impact of Government Policies

The Bulgarian government implemented various measures to support the real estate market during the pandemic. These initiatives helped maintain investor confidence and stimulate demand. Easier access to mortgages, with historically low interest rates averaging 2.68% in September 2021, played a crucial role in market dynamism.

Long-term Outlook

Industry experts anticipate continued growth in Bulgaria’s real estate market, driven by several key factors:

• The planned adoption of the euro in 2025, expected to attract more foreign investors and potentially lead to further price increases


• Steady wage growth, particularly in Sofia where the average salary reached €1,060, making homeownership more accessible for part of the population


• Growing interest from foreign buyers, with a 25% demand increase compared to the previous year

However, some challenges persist. Rapid price increases raise concerns about long-term housing affordability, particularly in major cities. Additionally, double-digit inflation and relative rental stagnation could affect rental investment profitability, transforming the market into one focused on appreciation rather than yield.

A Market in Transition

Bulgaria’s real estate market is undergoing a profound transformation period, marked by strong price growth and evolving buyer preferences. While major cities like Sofia continue to attract investors, there’s growing interest in properties offering better quality of life in less urban areas. The upcoming euro adoption and the country’s increasing attractiveness to foreign investors suggest a dynamic future for Bulgaria’s real estate sector, despite challenges related to affordability and long-term profitability.

Evolution of Buyer Preferences in the Post-COVID Context

Evolution of Real Estate Buyer Preferences in Post-COVID Bulgaria

The impact of the COVID-19 pandemic has profoundly changed the expectations and behaviors of real estate buyers in Bulgaria. Several factors have influenced this evolution, including the desire for improved living environments, the growing importance placed on outdoor spaces, and adaptation to hybrid work models.

Movement Toward Rural and Suburban Areas

A notable phenomenon is the movement toward rural and suburban areas. Many buyers, tired of dense urban life during the pandemic, now seek to move away from major cities like Sofia. This change is often motivated by a quest for tranquility and a healthier environment. Indeed, nearly 35% of recent real estate transactions show an increased trend toward these less populated areas.

• Young professionals sometimes abandon city life to restore old houses in nearly abandoned villages.


• The search for superior quality of life becomes a determining factor in their residential choices.

Increased Need for Dedicated Remote Work Spaces

With the rise of remote work imposed by the pandemic, expectations regarding interior layout have also transformed. Buyers now actively seek:

• Homes with separate spaces that can serve as offices.


• Larger total area to accommodate this new work model.

Statistics show that 70% of Bulgarian workers wish to continue working partially from home even after lockdowns end. This has led to increased demand for properties offering flexibility and functionality.

Growing Importance of Outdoor Spaces

Another significant aspect is the growing interest in properties with outdoor spaces such as gardens or terraces. After several months spent confined at home, many now seek to fully enjoy the outdoors:

• Having a garden or terrace has become almost essential for many buyers.


• This provides not only additional space but also an area dedicated to relaxation or outdoor remote work.

It’s estimated that access to these spaces can increase a property’s perceived value by up to 9%, underscoring their importance in the current market.

Reevaluation of Traditional Lifestyles

The pandemic has also led to a general reevaluation of traditional lifestyles. Many have realized that their previous pace wasn’t necessarily suited to their current aspirations:

• The desire for better work-life balance pushes some investors toward rental properties in these newly sought-after areas.


• This evolution not only fosters a return to roots but also encourages sustainable development through better connection with nature.

These trends reflect not only a temporary change but could durably influence Bulgaria’s real estate landscape in coming years as more buyers prioritize comfort, outdoor space, and rural accessibility in their property decisions.

Remote Work and New Demand for Residential Spaces in Bulgaria

Remote Work Boom Reshapes Bulgaria’s Real Estate Landscape

The COVID-19 pandemic has profoundly transformed work habits in Bulgaria, leading to a significant increase in remote work. This evolution has considerably impacted the real estate market, changing buyer search criteria and influencing demand for certain property types.

Bulgarian buyers’ new criteria now reflect specific needs related to remote work. The presence of a dedicated home office space has become paramount, as has the possibility of easily setting up a work area. Homes offering extra rooms or flexible spaces are particularly sought after.

Growing Importance of Outdoor Spaces

Demand for properties with balconies, terraces, or gardens has significantly increased. Buyers seek outdoor spaces allowing for fresh air and relaxation between work sessions. This trend has led to price increases for properties with such features, particularly in major cities like Sofia.

Renewed Interest in Suburban and Rural Areas

Remote work has freed many Bulgarians from proximity constraints to their workplaces. Consequently, renewed interest is observed in suburban areas and small towns, offering better living environments at more affordable prices. Locations like Plovdiv or Varna have seen increased attractiveness, benefiting from an influx of new residents seeking space and quality of life.

Recent data shows significant price increases in these areas, with an average 17% rise in Plovdiv compared to the previous year. This trend reflects growing appeal for regions offering a good compromise between pleasant living environments and connection to major cities.

Real Estate Market Adaptation to New Requirements

Bulgarian developers and real estate agents have quickly adapted their offerings to meet these new expectations. More projects incorporating coworking spaces within residential buildings are appearing, allowing remote workers to benefit from professional environments without leaving their buildings.

A Sofia real estate agent testifies: “We’ve completely revised our approach. Today, during viewings, we highlight possibilities for setting up office spaces and internet connection quality. These have become determining criteria for many buyers.”

Impact on the Rental Market

The rental market isn’t left behind, with increased demand for remote work-friendly housing. Landlords offering apartments or houses equipped for remote work (dedicated office, high-speed internet) benefit from a definite competitive advantage.

A Varna property owner shares their experience: “I set up a small office in my rental apartment and installed fiber internet. Since then, I have no trouble finding tenants, and I can even charge slightly higher rent.”

Challenges to Address

Despite these positive developments, Bulgaria’s real estate market faces certain challenges. Rapid price increases in newly popular areas raise concerns about housing affordability for local populations. Additionally, digital infrastructure in some rural regions requires improvements to fully meet remote workers’ needs.

Remote work has undeniably transformed Bulgaria’s real estate landscape, creating new opportunities and redefining buyer and tenant selection criteria. This trend appears set to continue, durably shaping the country’s housing market.