Housing in Bulgaria often does not have comfortable conditions for use
The real estate market in Bulgaria is experiencing interesting processes. On the one hand there is a growing demand, which leads to a shortage of objects, but on the other hand there is an excess. Experts explain this situation by the fact that most of the housing in Bulgaria is in an unsatisfactory condition and is in urgent need of renovation. A high percentage of properties in this segment are not suitable for use, at the same time they are included in the housing stock. As a result the market has a shortage of apartments and houses and the demand for them continues to grow.
According to the relevant ministry of the country, about 30% of the objects of the residential real estate segment are uninhabitable. A high percentage of such buildings is observed in large cities. For example, in Sofia their share is 24% and in Plovdiv 26%. At the same time, 41% of all homes in Bulgaria are overcrowded, and on this indicator the country ranks third in the European Union.
Between 2011 and 2021, overcrowding dropped by only 2%, but this is not enough to significantly improve the situation. Furthermore, experts are not sure that the decrease is due to the development of the housing stock, rather than to demographics and out-migration.
Another important problem of the real estate market is the low level of mobility of objects. Among homeowners, the share of those who are not able to heat their homes is growing. In total, 30% of the total number of owners in the country, which is considered the worst result among the EU states.
The government also expresses concern about the difficulty of acquiring the first property for young families. One of the factors that influence this is the low volume of properties that are in the public fund – such real estate only 2.4%. And the share of housing continues to decline, and there is no replenishment.
The situation in the segment is also aggravated by the increase in housing poverty in certain areas inhabited by different ethnic groups. In this case, the problem takes quite a large scale, as in the neighborhoods there are no basic services for a comfortable stay – sewage, running water, garbage is not removed.
Experts say that there is a shortage of affordable houses and apartments for sale and for rent in Bulgaria. The fact is that there is no concept of social housing in the country as such, a sector which is developing in other states. In order to change the current situation in Bulgaria, it is necessary to introduce state programs to support the population in need of housing. The best solution is to subsidize mortgages.