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The new normal in the real estate market

The market evolves and it is normal that prices do too

Aug 30, 2024 10:21 401

The new normal in the real estate market  - 1

The real estate market is entering a more mature phase. “Each property is individual. It has its own spirit, aura, characteristics and everything. Some properties are cheap, others are moderately expensive, and others – expensive, depending on who put what into making them. You cannot expect that all properties will be at 1000 or 900 EUR/sq.m. There must be a difference”, says the owner of a real estate agency, Miroslav Yazov, and gives the example of larger world cities such as Tokyo and New York, where the difference between the cheapest and most expensive property is 9 times.

The factors that lead to such a large difference are several. First of all – everything is zoned by neighborhoods. Also, the degree of completion of the property is different and accordingly costs a different amount of money. “We cannot expect that everyone will be the same and will be under one arshin. It can't be done. Therefore, prices of 2000-3000 EUR/sq.m in Plovdiv will be completely normal. The most important thing is to understand what is behind this price“, adds Yazov.

New York properties are so expensive because they are a kind of artwork. “They are super proud there that he is buying such a property. It is a symbol of status, of prestige. It is normal for this to happen in Plovdiv” is the mediator's opinion.

„There is money in the market. Loans are cheap. Many people's businesses are doing well. There are buyers. It is normal that the prices are high. Note that prices are a function of income. All these things have an economic dependence and a logic that will become more and more normal for the market. "Affordability is the thing to watch," adds the analyst.

We have to get used to the new normal. The city (note. ed. Plovdiv) is developing. “We are developing. Wages are evolving. It is normal for the real estate market to develop. It is normal that we already have very high prices. This is a normal process“, concludes Yazov.

You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE