Housing lending continued to grow in the second quarter of the year, increasing by 26.4% year-on-year, despite activity in the real estate market remaining below last year’s levels, according to an analysis by Credit Manager, part of Arco Real Estate, focusing on the lending market in the second quarter of 2026.
According to the analysis, the number of property transactions recovered compared with the first three months of the year, but remained lower year-on-year. At the same time, mortgage lending continued to expand in volume.
A total of 15,482 contractual mortgages were registered in the second quarter, representing an increase of 13% compared with the first quarter and 9.8% compared with the second quarter of 2025. Statutory mortgages reached 2,749, up 22.9% compared with the first quarter, but down 13.5% year-on-year.
According to Credit Manager’s observations, the average amount of mortgage loans applied for and approved in Sofia during the second quarter ranged between EUR170,000 and EUR180,000, while the national average stood at around EUR140,000.
In 2025, comparable figures were approximately EUR140,000–EUR150,000 for Sofia and between EUR100,000 and EUR120,000 for the country as a whole.
The company notes that the increase primarily reflects rising property prices, as well as the fact that households now need greater bank financing to purchase a home of a similar type. According to the data, the average down payment among the company’s clients ranges between 15% and 20%.
Given the current combination of inflation, high housing prices and relatively low interest rates, many clients prefer to make maximum use of the available bank financing rather than contribute a larger amount of their own funds. A similar approach can be observed when it comes to loan terms: clients most often prefer the longest possible repayment period in order to keep monthly instalments lower. Some plan to make partial early repayments at a later stage, thereby shortening the actual term of their loans, the analysis states.
According to the data, consumer lending recorded annual growth of around 14.8%, while corporate lending expanded at a more moderate pace, the company notes.
Credit Manager also reports a change in customer behaviour. Buyers remain active but are comparing more options, making more precise financial calculations and spending more time choosing both a property and a bank, according to the company’s observations.
Analysis: Housing Lending Continues to Grow In 2026 Q2 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-10-12 15:08:34
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BULGARIA NEWS – NEWS AGENCY 2009–2026 2026-10-12 15:08:34