The final prices of transactions in Sofia for the period January-June 2024 are increasing by about 8%. In Plovdiv, the levels are rising by 17%. Growth is also observed in Varna and Burgas, where many people invest in a home to use as a second home by the sea.
More than a 20% drop in the number of offers for the sale of homes in our country has been recorded since the beginning of the year until now. This is happening against the background of sustained and even growing demand and an increasing number of transactions. Activity in Sofia increased by 7% on an annual basis, and in Varna and Plovdiv - by 8% and nearly 20%, respectively. This is according to the report of ADDRESS Real Estate for the first half of 2024.
„We have seen a steady trend since the spring - many people are postponing the decision to sell, despite the high prices at the moment. Those who have a plan to invest the funds later remain on the secondary market – another property or starting a business, for example. Property owners who do not need urgent money see no reason to part with their properties, commented Gergana Tenekejieva, executive director of "Adres Real Estate".
In her words, if this trend continues amid growing demand, we will witness a classic seller's market. “On the one hand, this would lead to additional growth in house prices. On the other hand – construction contractors will try to compensate for the shortage and the volumes of new construction will grow, Tenekejieva adds.
Only 10% of ADDRESS clients sold their property during the six months due to the need for money. About 18% of people are selling to buy, and over 30% are exiting a previous investment in the conditions of high prices. The latter group is the largest of all sellers for the period.
„Expectations that inflation or financial difficulties will cause many sellers to put their properties on the market, and as a result – prices will go down, they didn't. At the moment, we are not even observing potential factors that could lead to a decline," says Tenekejieva.
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE