Builder: land can exceed 70% of housing project costs in Sofia's prime districts

In Sofia's most sought-after districts, land can account for more than 70% of the cost of a housing project, compared with about 30% in mass-market locations, said engineer Georgi Shopov, manager of construction firm Tobo Grup, on the podcast “Kvadratni metri”, as reported by Fakti.bg. According to him, preliminary contracts for flat purchases in the capital fell about 18% year on year, while prices rose 15%.

Preliminary contracts reflect the market faster than final deals because transfer of ownership can come up to two years later, Shopov said. He cited inflation, strong demand, more expensive materials and labour, and a shortage of suitable plots as price drivers. He criticised Sofia Municipality for creating too little new zoned land and for failing to build infrastructure in existing neighbourhoods.

Data from the National Statistical Institute cited in the article show home prices in the second quarter of 2026 were 15.5% higher than a year earlier. According to Vesti.bg data, 8,874 deals were registered in Sofia in the same quarter, down 16.7% year on year. Shopov does not expect a dramatic slump: he said the decline in transactions would not exceed 20%, after which the market could stabilise for several years.