The real estate market in 2025 will be different from the one it was in the already expiring 2024. "The reason for this is a meeting we had with SANS. For SANS, the real estate market continues to pose a serious risk. The European Commission has a lot of recommendations, as a result of which the restrictions on the market will be increasingly serious. They called on us to be more accurate in our reports and in our observations regarding the prices of transactions and how they go. "I expect very serious restrictions," said the owner of a real estate agency, Miroslav Yazov.
He added that serious restrictions will also come from a new law that is coming into force - anyone who buys a new real estate property (ed. note: built in the last 5 years) or receives it as compensation and sells it within these 5 years is obliged to register for VAT and charge VAT on the sale price. "This means that a lot of sellers will withdraw from the market. This means that in order to compensate for the increase in question, they will raise prices and at some point the real estate will actually become unavailable," Yazov added.
Many people bought real estate with the aim of reselling. Now they will be quite surprised. "Not to mention that they bought them at some value in the initial stage of construction, from a builder, went through a tax assessment of the right to build and now they have to pay a large profit tax and VAT. Not to mention that banks are no longer very willing to compromise with the money for finishing work and repairs. Personally, I expect an extremely difficult 2025 for the real estate market", Yazov predicts.
The easy is over. We will witness an outflow of buyers. Sellers are waiting for the euro to come in, but no one realizes that at some point there will be no one to buy all these properties. Yes - they will retain their value, but since there will be no buyers... Real estate is a slowly liquid product and more and more people will realize this.
"Anyone who has decided to buy real estate in 2025 for speculative purposes should be very careful. "Those who have decided to buy a property to live in will have to search a little harder, as it is difficult to find good deals," Yazov predicts.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be seen HERE