Plovdiv overtakes Sofia in new construction: What is behind the boom and what will be the “hot spots” in 2026?

Plovdiv is consolidating its position as one of the fastest-growing cities in Bulgaria, ranking first in construction activity according to the National Statistical Institute latest data (NSI). In the third quarter of 2025 alone, 442 permits for new residential buildings were issued in the city, representing an increase of nearly 12% compared to the previous three months. These projects involve the construction of 3,744 homes, or 34% more than in the previous period – a growth rate not seen in any other region in the country.

High activity in Plovdiv

During the same period, Plovdiv also registered extremely high activity in the construction of 287 new residential buildings, placing it not only ahead of Sofia, but also ahead of the traditionally strong markets in Varna and Burgas.

This upturn is no coincidence. The combination of high demand, promising infrastructure prospects, potential for expansion, and, above all, efficient administrative processes creates conditions that attract more and more local and foreign investors.

What impact does the administrative environment have?

Very often, the success of the construction sector is linked to economic or demographic factors, but in the case of Plovdiv, another component plays an important role—a smooth and predictable administrative procedure. According to Stanimir Raev, manager at Nov Dom 1, this is one of the main drivers of growth: “The procedures for urban development plans, building permits, and commissioning in Plovdiv are significantly more efficient. This shortens the time needed to implement a project and makes the market extremely favorable for investors.”

When processes are faster, projects are implemented more quickly, capital circulates more dynamically, and investors have more confidence to plan for future growth. This puts Plovdiv in a competitive position compared to other large cities, where similar procedures are often delayed.

Capital follows population concentration

Construction growth is also directly linked to changes in the profile of buyers and investors. While years ago the market was dominated by local residents, today the trend is different – demand comes from a wider region.

“Many people from surrounding cities prefer to invest in Plovdiv – a larger, economically active center where prices are still attractive,” Raev notes.

Investors are becoming increasingly diverse, including in terms of origin. “Foreign investors are accounting for an increasingly large share. When the population is concentrated in the four major cities: Sofia, Plovdiv, Varna, and Burgas, the capital follows this concentration,” he adds.

An abundance of projects, but not of quality ready-to-move-in homes

An interesting contradiction can be observed in the Plovdiv market: huge growth in properties “under construction,” but also a serious shortage of quality, nearly ready-to-move-in or completed homes.

“The market is oversaturated with properties under construction, but there is a serious shortage of quality properties after Act 14. It is precisely this oversaturation that makes the market healthy, because prices remain attractive and affordable for both city dwellers and those from the surrounding area,” explains Raev.

Prices are rising steadily, and off-plan purchases remain the preferred option

Plovdiv continues to offer predictability in terms of prices. There are increases, but they are moderate – a sign of a mature and balanced market. This, in turn, maintains strong interest in off-plan purchases.

“The price difference between buying off-plan and ready-built properties is becoming more and more noticeable, and more and more people with €10-15,000 in capital can become investors,” comments Raev.

According to his observations, by 2025 almost everyone will become an investor. When there are schemes such as 20% payment upon preliminary contract and 80% upon commissioning, this opens the door for people who have €10,000-15,000 and are looking for a quick opportunity to invest their capital. This naturally sustains interest in the early stages of construction.

Where will the next construction boom be?

A look at 2026 clearly outlines which neighborhoods will become centers of future growth. The southern districts of Ostromila and Belomorski remain the undisputed leaders.

“They offer space, air, new infrastructure, and enormous unrealized potential,” Raev comments. Alongside them, the Hristo Smirnenski neighborhood continues to be one of the most established and steadily developing locations, preferred by both buyers and investors.

Record growth in permits, high construction activity, strong external demand, and clear trends for new neighborhoods of the future put Plovdiv in a very strong position. The city is not just growing—it is transforming, attracting increasingly diverse capital and creating conditions for sustainable development.