The value of the housing affordability coefficient as of the first quarter is 1.20, which indicates a deterioration in affordability and a return to the levels from the end of 2022 at the height of inflation. However, affordability remains at the average level around which it fluctuated in the years after the great financial crisis.
The average salary in Sofia for the period according to NSI data is 3386 leva, which means that to purchase 1 sq.m. of residential area in Sofia, 1.2 average monthly salaries are needed. For comparison, in 2008, 3.4 salaries were needed for the same area, recalls the agency BULGARIAN PROPERTIES.
Despite these data, Bulgarians continue to invest in real estate. Proof is the fact that for the first quarter of the current year, the National Statistical Institute reports a 17.7% increase in real estate transactions in the capital. For the first three months of the year, 8,588 transactions were registered in Sofia, which for the first time exceeds the levels reached at the peak of transactions in 2008.
As for the available bank financing, it has a strong effect on the market. BNB data on housing loans issued indicate that the average interest rate continues to be at historically low levels - below 2.5%. In Bulgaria, unlike many other countries, there was no change in interest rates, even during the accelerated inflation, which kept the market in a growth cycle. At the same time, the lack of investment alternatives and zero interest rates on deposits make investing in property the safest and most profitable.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be seen HERE