Bulgaria

As of mid-2025, Bulgaria’s housing market is marked by high rates of home ownership and sharply rising prices. Approximately 86% of Bulgarians live in owned homes, leaving just 14% as renters—one of the highest home ownership rates in Europe. Renting is relatively uncommon outside major cities. Median purchase prices for apartments have soared: in Sofia, prices range from 1,200 to 3,300 euros per square meter, with central and prestigious districts at the upper end. In Varna, prices can reach 3,327 euros per square meter in premium locations, while central Burgas averages above 2,000 euros per square meter. Across resort areas like Sunny Beach, prices range from 800 to 2,000 euros per square meter depending on quality and location. Rental prices in Bulgaria average between 6 to 10 euros per square meter monthly in Sofia, with lower rates in smaller cities. Publicly owned housing plays a negligible role in the Bulgarian market. Social housing stock is extremely limited and often of poor quality, serving only a fraction of those in need. Access is highly restricted by strict eligibility, and municipalities set their own criteria, causing regional inconsistencies and lengthy waiting lists. In Bulgaria, social housing is a subset of public housing, specifically targeted at low-income or at-risk groups, and is not available to the general public. Public housing only covers a minimal share of the market, with almost all properties privately owned.

Bulgaria’s housing crisis is marked by rapidly rising prices and limited affordability, especially in urban centers. Housing prices increased by over 15% in the first quarter of 2025 compared to the previous year, with significant surges in Sofia, Varna, and Burgas. Price growth has consistently outpaced wage increases, pushing the average price-to-income ratio in major cities to around 8:1, meaning the typical home costs eight times the average annual household income. Demand remains high due to accessible bank lending, while new construction fails to keep up, keeping supply tight and prices elevated. The crisis is compounded by a shortage of affordable housing, particularly in cities, and an aging residential stock—many multifamily buildings require substantial renovation. Overcrowding is severe, with more than 41% of the population living in cramped conditions, the highest rate in the EU. Energy inefficiency in older buildings drives up utility costs, and a large share of the population struggles to afford adequate heating. Vulnerable groups are disproportionately affected. Low-income families, single parents, the elderly, and especially the Roma minority face severe exclusion. Access to social housing and municipal support is very limited, serving only a fraction of those in need, and strict eligibility criteria exclude many marginalized households. These systemic challenges leave much of the population—especially marginalized and low-income groups—at risk of poor housing quality, unaffordable costs, and social isolation.

The Bulgarian national government addresses affordable and sustainable housing mainly through strategic planning and regulatory measures rather than large-scale direct intervention. The draft National Housing Strategy is currently being updated to reflect Bulgaria’s changing socio-economic and demographic context, with goals that include increasing the supply of social housing, improving the energy efficiency of the existing building stock, and developing financial mechanisms for low-income households to access home purchase and rental. These priorities stem from recognized challenges: outdated and energy-inefficient buildings, a shortage of appropriate social housing, and barriers faced by vulnerable populations. Key government activities include developing targeted national programmes to support disadvantaged groups, such as the National Action Plan linked to the European Child Guarantee, which focuses on direct assistance to vulnerable families and children. Other concrete measures involve regulatory reforms for sustainable development, incentivizing energy-efficient construction, and coordinating with municipalities to repurpose unused state-owned buildings for temporary social accommodation. The government also supports infrastructure improvements and green building standards to align with EU sustainability goals. Recently, Sofia Municipality, with support from the Council of Europe and partnership with national authorities, has committed to a long-term social housing strategy to be unveiled in September 2025, highlighting a shift towards more structured and strategic solutions for affordable and sustainable housing across Bulgaria.

Housing cooperatives in Bulgaria represent a **small but gradually emerging segment** of the country’s housing sector. Currently, cooperative and social housing combined account for approximately **3% of the national housing stock**—a share well below the European Union average. Most new residential construction in Bulgaria focuses on detached houses and private apartment buildings, with housing cooperatives representing only around 16% of newly built residential buildings. While limited in scale, **interest in cooperative housing is growing**, primarily in major urban centers like Sofia and Plovdiv, where affordability challenges are acute. Recent years have seen several pilot projects and a rise in public and municipal support for cooperative models as alternatives to speculative private markets. In response to the affordability crisis, the **Bulgarian government is beginning to promote cooperative housing** through targeted measures. Notable initiatives include the Cooperative Housing Initiative launched in 2023, which offers low-interest loans, technical assistance, and, in some cities, municipal land grants for cooperative developments. Educational programs also aim to raise awareness and build organizational know-how for housing cooperatives. Despite this progress, **cooperative housing in Bulgaria remains in an early stage of development**, facing barriers such as limited awareness, lack of tradition, and market dominance by private ownership. Nevertheless, ongoing government support and growing public interest signal the potential for a more substantial cooperative housing sector in the future.

In Bulgaria, several organizations and individuals are actively working to address the housing crisis and promote more affordable and sustainable housing. Habitat for Humanity Bulgaria is a prominent organization focusing on improving housing conditions and eliminating housing poverty. They work in areas such as affordable housing construction, housing improvement financing, and advocacy for better housing policies. The organization has supported thousands of families and has been instrumental in building homes and improving living conditions across the country. Good collaboration partners from different sectors could include academia, with institutions like the University of Architecture, Civil Engineering and Geodesy in Sofia, which could provide expertise in sustainable building practices. From the real estate sector, companies like Iмотека, which has been involved in analyzing market trends and could offer insights on sustainable housing developments. In the startup world, companies focused on innovative housing solutions could be valuable partners. NGOs like Habitat for Humanity Bulgaria continue to be key players in advocating for affordable housing solutions.