Rents in Sofia are reaching historic highs, with prices for a two-bedroom apartment in prestigious complexes exceeding 1,700 euros per month. At the same time, according to NSI, the increase in the second quarter of 2024, compared to the same period in 2023, is 15.1%, combined with interest rates on housing loans just over 2.5%, presents renters with a difficult choice. Monthly mortgage payments are leveling with rents, and the extended average term of loans to 30 years makes the purchase increasingly affordable.
The current state of the rental market in Sofia
The average price for renting a two-bedroom apartment in Sofia in April 2024 is 565 euros per month, while three-bedroom apartments are offered for an average of 852 euros. Prices per square meter have reached 10.98 euros, which represents a significant increase compared to previous periods.
In the most preferred central and prestigious neighborhoods, prices are significantly higher. The rent for two-bedroom apartments in the center and neighborhoods such as “Hladilnika”, “Oborishte” and “Izgrev” reaches about 650-720 euros per month. For three-bedroom apartments in the central part, rents are already negotiated from 800 euros upwards.
More affordable options can be found in the outer neighborhoods such as “Lyulin”, “Banishora” and “Nadezhda”, where two-bedroom apartments are rented for 450-500 euros per month. The most drastic increase in rents is observed in the “Ovcha Kupel” area, where prices have increased by over 200 leva compared to the previous year, reaching an average of 540 euros per month, due to the proximity to the NBU and the new metro stations.
The market is characterized by an imbalance between supply and demand. The demand for rental housing significantly exceeds the supply, especially in the low price segment (600-1000 BGN). The most sought-after are one-bedroom apartments. For quality properties at a reasonable price, there are even “viewing queues”, and the strongest demand is registered in the central, eastern and southern regions of the capital.
Seasonal fluctuations and changes over the years
The rental market shows clear seasonality. The strongest periods are summer and early autumn, when demand is highest and prices are about 10% higher than usual. Conversely, in autumn and winter there is less competition, with January being the cheapest month to rent a home.
The COVID-19 pandemic turned out to be a turning point for the entire sector. After a brief decline in early 2020, the market quickly recovered. Compared to the same period last year, the increase in rents is between 20-30%. For example, in “Mladost” the increase is 20%, with the rent for a two-room apartment reaching over 500 euros.
The pandemic has also changed the preferences of tenants. Many people have shifted to larger apartments due to working from home, as well as to more functional and well-furnished homes. Interest in properties located near parks or with easy access to nature is growing. Homes with an additional room for a home office are particularly in demand. Another important trend is the return of Bulgarians from abroad, who often work remotely for foreign companies and have higher quality requirements.
Financial considerations when moving house
When planning the budget for a new rental, you should consider not only the monthly rent, but also the deposit, which is standardly the amount of one month's rent, but increasingly, landlords require two months' rent as a guarantee. It is important that the contract is in writing with clear clauses on the amount of the deposit and the conditions for its refund.
Besides the obvious costs, there are also “hidden” financial burdens. The broker’s commission is usually half a month’s rent, but it is increasingly common for them to charge 80%, even up to 100% commission. The costs of the move itself should also not be underestimated – transportation, packing and moving furniture can cost around 1000 leva. What about the time lost in this activity?
Financial experts recommend that the rent should not exceed 30% of the monthly household income. If the tenant's monthly income is 3000 BGN, the optimal rent would be a maximum of 900 BGN. With an average offered rent of 8.26 EUR (16.15 BGN per sq. m.), the average income in Sofia of 2213 BGN per person allows for renting a home of about 41.1 sq. m. However, this means that the desired home should have a monthly rent of about 650-700 BGN, where the demand is highest. This is what will make it much more difficult to find. For this reason, sharing with a roommate is the preferred practice in Sofia.
Advantages of new construction
In a situation of sharply rising rents, new apartments stand out as a particularly attractive option. They offer significant advantages:
- Energy efficiency with reduced heating costs
- Modern amenities and functional layout
- Warranty period for construction quality
- Higher investment value over time
Forecasts and statistics
The growth trend is expected to continue next year. In the luxury segment, there is increased interest in new projects with 15% compared to the previous year, especially to gated complexes with comprehensive maintenance.
The data shows significant differences in prices per square meter in different neighborhoods. In the center, the average rental price reaches 10.90-12.00+ euros/sq m, and in the “Yavorov” neighborhood, rents are highest – 11.06 euros/sq m. More affordable are the neighborhoods “Lyulin” (6.30-8.50+ euros/sq m), “Svoboda” (6.40-7.50+ euros/sq m) and “Tolstoy” (6.80-7.50+ euros/sq m).
Inflation in Bulgaria is also a contributing factor, with statistics indicating an increase of 22.21% from March 2022 to March 2025.
Conclusion
The rental market in Sofia is going through an unprecedented period of change. Rents continue to grow rapidly, while the supply of quality properties remains limited.
The current moment is extremely favorable for renting a home, especially in new construction. There are several reasons for this - first, the expected further increase in rents in the coming months, and second, the opportunity to choose from a larger number of new apartments that are still on the market.
For those looking for a rental home, flatimo is the first online real estate platform in Bulgaria, with an innovative model for renting and selling homes, which does not charge a commission from tenants. This makes the process of finding a new home significantly more financially accessible. Have you seen the apartments we offer?
Whether you plan to stay in a rental for the long term or are considering a future purchase, the present moment offers a unique opportunity to make an informed choice. Quality properties, especially new construction, will become increasingly sought after and consequently more expensive. Therefore, acting now can provide you with better conditions and a greater choice of options.
