The effect of the long talk about Bulgaria's possible entry into the eurozone and how this fact will lead to an increase in real estate prices has already run out and this is unlikely to have a significant impact on the market. “I am sceptical that this factor alone - entering the eurozone - will lead to a significant increase in prices. This effect seems to have already run out, because we have been talking about the eurozone for quite some time. Since the second half of last year, we have seen an acceleration in price growth and, just as it had dropped to about 6-7% in Sofia, at the end of the year we saw growth of 17% on an annual basis. So this year the growth will continue“, says Polina Stoykova, executive director of the Bulgarian Properties agency.
Other real estate agents, however, rely on the practice in other countries. There, housing prices in the first two quarters after the euro came into force as a legal currency increased by about 13%. According to them, this is possible to happen in our country as well.
The shortage of housing in a good location, with maintained common areas and the presence of an elevator in the building (note, especially when it comes to the center of Sofia or another large city), is the main reason for the increase in prices.
In recent years, the emphasis has been on new construction properties. However, the focus on old construction is returning and this year we will witness a stronger demand for this type of apartments, taking into account the changes in the VAT Law regarding the sale of new construction housing.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be seen HERE