Housing in Bulgaria and its prices: review of the real estate market of the country
The experts presented a fresh report on the real estate market in Bulgaria. According to the data for the 3rd quarter of the current year, a recession is observed in the segment and supply is increasing. Prices for housing in Bulgaria have risen significantly, and not all local people can afford such an expensive purchase.
Unreasonable prices for apartments are fully observed at the secondary market. Sellers there are increasing price increases, especially near Sofia and in big cities. The slowdown in the market dynamics is also reflected in lending volumes. This year’s mortgage issued by 20% fewer people than in the past.
The greatest demand is for studio apartments, the price of which in new buildings is 60-80 thousand euros. And if before people preferred to buy such housing in the early stages of construction, but now more willing to buy an object at the final stage.
Two-room apartments have become less interesting. Their price ranges from 90 to 150 thousand Euro.
Growth in value significantly affects the purchasing power of Bulgarian citizens, so they look for options with discounts from developers. There are fewer and fewer investors, and most of them buy apartments for their own use. The interest is also shown by foreigners.
The increase of the cost per square meter at the real estate market is reflected not only in the sales volumes. It slows down the economic growth in the country, which together with the global slowdown may cause negative consequences in the future.
Experts predict that housing prices have already reached their maximum values and now there will be their gradual stabilization at this level or slightly less. The cost per square meter for the year has increased by 6.5%, but a slowdown is expected from the new period.
The general situation at the real estate market in Bulgaria has practically not affected the capital. A record number of deals were concluded here, for the first time after the economic crisis. If last year there were 7 119 purchase/sale contracts registered in Sofia, this year 7670 contracts were concluded. For 6 months the number of deals in the capital has increased by 4%.
As before, buyers prefer housing located in the southern part of Sofia, in the center, Banishor and other popular areas.
In the 3rd quarter of 2019 60% of the deals were conducted with the use of mortgage lending. But despite the fact that this banking service has quite favorable conditions and low interest rates, interest in it is declining.
The price of housing in Bulgaria is growing, but the number of those wishing to reduce it.
Many buyers are not sure about the future, so the idea of buying an apartment is postponed for the next year.