In August, mortgage loans increased by a record 25% compared to the same month last year, according to the BNB. The last time there was such growth was before the crisis – in April 2009, statistics show.
In August, the amount granted as a loan for housing lending amounted to BGN 23.2 billion. In just one month, the increase was nearly BGN 500 million, according to BNB data. For a year, the withdrawn mortgage loans increased by BGN 4.7 billion
The reason for the dizzying growth in the number of mortgage loans is that the interest rates on them remain the lowest in all of Europe. From the beginning of October, the new restrictions of the BNB, which aim to limit the growing number of mortgage loans, are in force. The first results of these measures may be seen in the spring, even the summer of next year, analysts say. They predict that there will hardly be a decline in mortgage lending. Rather, we can expect zero growth.
The Bulgarian will hardly soon learn to live in rent. It is in his mentality to have his own home. Because of this, the rate of price increase could hardly slow down. It is a fact that our country ranks second in Europe and ninth in the world in terms of rate of price increase. In Sofia, the prices are the highest, as intermediaries do not predict a decrease.
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE