The rate of housing price appreciation in Bulgaria in the first quarter of the current year is the strongest compared to all EU member states, according to Eurostat data. The price increase is within 7.1% compared to the last quarter of 2023. The main reason for the high price growth is high demand and low interest rates on mortgage loans, analysts remind.
The reason for the low interest rates is that in recent years there has been an increase in income, and part of it people are saving, mainly in deposits. Thus, banks get a cheap resource for lending.
The issue surrounding Bulgaria's upcoming accession to the Eurozone is also pushing property prices up, purely psychologically.
"The expectation is for an increase in prices, but not on the basis of membership itself and the transition from lev to euro, but on the basis of the stability of such an investment. The investment in the Bulgarian property will become more attractive", market analysts are categorical.
According to them, it is difficult to talk about cheaper housing. There are several reasons, the first of which is a decline in the supply of ready-made housing. Entry into the Eurozone is also an important factor keeping property prices higher as many owners who have decided to sell are holding off. More and more homes under construction are appearing on the market, but for many buyers it remains a risky market.
Buyers are interested in homes located in a fulfilling environment. That is why it is so important to work hard to improve the environment. Most inquiries are for properties in central city areas.
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE