The value of the affordability coefficient as of the third quarter is 1.16. With this, it worsens slightly due to accelerated price growth and a slowdown and even a slight decline in the average wage.
„However, the indicator remains at good levels. The average salary in Sofia for the period is BGN 3100. and so for the purchase of 1 sq.m. residential area in Sofia needs a little more than 1 average monthly salary. For comparison, in 2008 (at the previous peak of the market) 3.4 salaries were needed for the same area”, says Polina Stoykova MRICS, executive director of BULGARIAN PROPERTIES.
The most sales were registered in Banishora (1,968 EUR/sq.m.), Malinova Dolina (1,420 EUR/sq.m.) and Krastova Vada (2,000 EUR/sq.m.). These are also the areas with the most new construction sites, which are currently driving the market, and have been more preferred by buyers for 10 years.
„This year, too, the trend of insufficient supply on the secondary market is maintained, although the conditions for the sale of property are excellent,” says Stoikova.
New construction is also failing to make up for the shortfall, and figures for new building permits issued show a 20% drop for buildings and 30% for homes in them compared to last year. This means that the new buildings that are about to come on the market will not be able to help increase the supply.
The share of two-room apartments is 60%, and three-room apartments – 35%. Four-room apartments are less than 5% of the total volume of transactions.
Buyers are moving towards more compact homes, with two-bedrooms remaining the most preferred because of their more affordable end prices.
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE