site.btaChallenges Expected on Real Estate Market in 2025 Due to Overpriced Listings

Properties listed above market value will struggle to find buyers over the next 12 months, according to a forecast by the Imoteka real estate agency, shared Tuesday with BTA. While sellers have dominated the market in recent years, achieving higher-than-expected prices fueled by general euphoria, such outcomes will be difficult in 2025.

"The upcoming year will see a balance between buyers and sellers. Buyers will no longer face the pressure of constantly rising prices and will carefully scrutinize listings, particularly those overpriced relative to the quality of the property," said Yavor Peychev, CEO of Imoteka. He added that sellers, especially on the secondary market, will need to be competitive, and accurate property valuation will be critical for successful transactions.

The company predicts a stable and active market in 2025, with transaction volumes holding steady nationwide and single-digit price increases in regional capitals. Areas experiencing strong buyer and developer interest may see double-digit growth.

Impact of eurozone entry

Peychev noted that accessible bank financing is expected to continue during the first half of the year, further enhancing transactions. However, Bulgaria’s planned entry into the eurozone in July 2025 could trigger additional price hikes.

"Traditional market factors will have less impact on property prices compared to Bulgaria’s eurozone accession. If this happens as planned, we could see prices increase further," Peychev explained.

Changing buyer profiles

Imoteka also anticipates a shift in buyer behavior in 2025. Individuals with savings are likely to be more cautious, impacting the market in two ways. Some conservative investors may halt real estate purchases and opt to keep their money in banks. Others who previously invested in less predictable assets like stocks, gold, or cryptocurrencies may turn to real estate as a safer, more stable option.

Migration to major regional centers will continue to shape the market, driving demand for both property purchases and rentals. The rising bank savings of Bulgarians, combined with the euro adoption, will encourage further investments in housing.

Factors that could slow the market

Potential barriers to market activity include a rise in bank deposit interest rates above 3%, which may deter buyers seeking returns on investment properties. Changes in mortgage conditions, as well as legislative or tax reforms related to property ownership and acquisition, could also have a cooling effect.

Buyers’ preferences: beyond the apartment

The overall living environment will play an increasing role in purchase decisions, particularly for young families seeking their first homes. According to Imoteka, buyers will look beyond the apartment’s features and will start looking at the building’s quality, common areas, local infrastructure, and access to parks and green spaces, all of which contribute to comfort and quality of life. Energy-efficient and eco-friendly homes that combine functionality with sustainability will also be in high demand.