Prices for flats in Bulgaria may increase in the near future
Bulgaria joined the Schengen zone on 1 April. This has opened up new opportunities for the country and impacted the property market. Analysts predict an increase in the prices of houses and apartments in Bulgaria. In anticipation of higher prices, owners are in no hurry to sell their homes.
Bulgaria’s entry into the eurozone could potentially attract foreign buyers to the property market. The leading players in the sector today are locals. However, analysts believe the country can potentially attract more than just private buyers. It can also offer exciting projects for foreign investment funds.
Despite expectations of rising property prices, the supply on the market has diminished. This is particularly noticeable in the country’s major cities, where demand has significantly outstripped the number of properties for sale. The fact that most new apartments in Bulgaria are bought at the early stages of construction aggravates the situation. As a result, there are virtually no finished properties available for sale. These processes stimulate the growth of real estate prices.
Prospects of the housing sector
According to experts, the Bulgarian market is developing at a good pace. Several positive trends favour the growth of the sector. Among them:
The country has a shortage of building land, especially in popular regions.
Given this fact, developers prefer to build large objects with many flats.
There is active development of new residential areas in large cities.
Developers are modernising abandoned industrial zones and transforming them into modern spaces for comfortable living.
Analysts have also noted an increase in market activity in recent years due to several factors:
– an increase in the income of the country’s citizens;
– decreasing unemployment rate;
– continued low interest rates for home loans.
In addition, consumers are looking to improve their living conditions. Many are looking for larger apartments and houses and prefer to invest in property.
Overview of flats in Bulgaria prices
Demand is stronger for new buildings than for secondary market properties. This is due to the use of improved technology in building. In addition, new flats and houses are more energy-efficient than older ones.
As for the cost of housing, it increased in the first quarter of 2024. On average, a two-room apartment’s price per square metre rose by EUR 100. Such apartments are in high demand, especially in large cities. In Sofia, the capital of Bulgaria, a one-bedroom apartment will cost 1,420 euros per square metre. The price has risen by 6% over the year. In Varna, a square metre of a similar property sells for 1230 euros, an increase of 11%. Burgas’s price is lower – about 880 euros per square metre. m. However, over the year, the figure increased by 17%.