By an average of 14%, the prices of housing in our country have increased over the last 12 months, according to the data of Bulgarian properties. a price comparison of prices in regional cities at the end of the third quarter of 2024 compared to a year earlier.
"In the calendar year 2023, a rise of 21% was noted. It can be seen that, in general, price increases are slowing down this year compared to the previous one, but remain relatively high," says Polina Stoikova, executive director of the agency.
The highest increase in price per square meter is in the regional cities of Vidin, Kyustendil, Lovech and Sliven, where an increase of over 20% is reported for another year. The reason for this is mainly the catch-up trend for regions where the market development had previously lagged behind. It is curious that Sofia, Plovdiv and Stara Zagora report growth from 6.9 to 7.7%, i.e. below the national average. At the same time, demand in these cities remains among the highest.
1837 EUR/sq.m. is the average price for residential properties in Sofia, according to BULGARIAN PROPERTIES statistics. In the ranking for the most expensive properties, Varna follows with 1,443 EUR/sq.m., Burgas with 1,300 EUR/sq.m. and Plovdiv with 1259 EUR/sq.m. The cheapest apartments are in Silistra - 694 EUR/ sq.m.
The upward trend has been sustained throughout the year, with no indications of a market slowdown or an upcoming correction, Stoykova summarizes. "Demand continues to be supported by the growth of incomes in our country, as well as by low interest rates on mortgage loans,", she adds.
From October 1, the new rules for granting and renegotiating mortgage loans for households came into force, which aim to cool down the sector to some extent. According to these new rules, the mortgage loan cannot exceed 85% of the value of the property, the monthly costs of the loan cannot exceed 50% of the borrower's monthly income, and the maximum repayment term becomes 30 years.
Experts point out that the changes are not restrictive and do not expect them to lead to a sharp rise in interest rates, but rather to continue the smooth upward movement. Mortgage lending in our country is still relatively cheap compared to other EU countries, and according to BNB data, as of August 2024, interest rates on mortgage loans for households are at average levels of 2.55% in BGN and 2.79% in EUR.
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE