The end of dual euro-lev pricing: what it means for Sofia's property market

On 1 January 2026, Bulgaria became the 21st country in the eurozone, and the euro replaced the lev as the official currency. In January, the two currencies were used in parallel in cash, and from 1 February 2026 the lev ceased to be legal tender — all payments, including property transactions, are now made exclusively in euro. Bank accounts, deposits, and loans in lev were converted automatically and free of charge on 1 January at the fixed rate of 1 euro = 1.95583 lev — the rate that remains authoritative for any conversion between the two currencies.

Since 8 August 2025, real estate agencies, along with all merchants, have been required to display prices simultaneously in lev and euro — in property listings, offers, and marketing materials. This dual-pricing period ends on 8 August 2026, after which prices will be shown in euro only. In practice, for Sofia's property market the change is mostly formal — most listings have for years already been priced in euro per square metre, so the main thing disappearing is the extra line showing the lev equivalent under each price.

More significant is the effect of the euro adoption itself on market dynamics. 2025 was a record year for Sofia property — buyers rushed to close deals before the transition, driving double-digit price growth. That pulled-forward demand carried into early 2026 as well: in the first quarter, asking prices rose around 29% year-on-year, and actual closed deals averaged around €2,680 per square metre against asking levels of around €2,700/m². Analysts and brokers expect this pace to slow to more sustainable single-digit levels of around 8–10% by the end of the year, as the effect of pulled-forward demand fades. At the same time, the euro removed the currency risk that had previously held back some foreign investors — January 2026 data showed a noticeable jump in interest from EU buyers, drawn by the greater predictability.

For buyers and sellers finalizing a deal in the remaining weeks of dual pricing, there are a few practical points. Preliminary contracts and notarial deeds already state the property price in euro, and the local acquisition tax, the Registry Agency's registration fee, and the notary fee are all calculated from that figure — so it's worth making sure the amounts in both currencies on a listing match exactly at the 1.95583 rate, without rounding in either party's favor. If you're still holding lev in cash from a property sale, banks and post offices will exchange it free of charge at the fixed rate until 30 June 2026, after which they may introduce a service fee — though the Bulgarian National Bank will continue exchanging lev for euro indefinitely and free of charge.

The overall picture is a market entering a calmer, more transparent phase after the turbulent transition to the euro. The rate is fixed, the calculations are clear, and less depends on currency fluctuations — this is a good time for buyers and sellers to close deals with confidence, as long as they carefully check how each amount was calculated.

At New Key Properties, we'll always explain exactly how a property's price is calculated and why — based on our values: Trust, Honesty, Results. Contact us at 0879 826 292 or office@newkey.bg for a free consultation about your transaction.