Experts' forecasts regarding the impact of Bulgaria's entry into the Eurozone are mixed on the real estate market. Some are of the opinion that since the market is still in euros, the change will be minimal, while others emphasize the psychological moment of our adoption of a single currency and are of the opinion that this will increase property prices.
From a technical point of view, however, there is the question of how the mortgage loans of the persons who took them in BGN will be converted. Experts are of the opinion that the revaluation will have a direct impact on the amount of loans and future obligations of customers. Properties purchased with credit in BGN will have to be equated to the euro. It remains unclear exactly what the mechanism of this change will be. At the moment, there is no answer to the question of whether additional fees will be imposed during the conversion, which may lead to a loss for borrowers.
Regarding the real estate market as a whole, almost no change is expected, since the prices in the ads have always been in euros, and the payments are made in BGN, with the currency conversion taking place at the BNB exchange rate.
The psychological effect should not be underestimated either. Incomes calculated in euros may appear lower, especially for those who are insured on the minimum wage. This will create a feeling of a drop in income, although in reality this drop should not be large.
After the introduction of the euro, a change in the price of mortgage loans can be expected. For this reason, experts prefer that the purchase with a bank loan be made before the introduction of the single European currency. If the current fixed euro/lev rate is maintained, the losses for buyers will be minimal.
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE