The increase in housing prices in 2024 is a little over 15%, experts say, and they predict that this year it will be between 5% and 10%. The main reason for this is the higher number of transactions that have been completed on the market and the fact that there is no data available that their number will decrease this year.
Mortgage loan interest rates affect a small portion of home buyers. Data shows that out of 100 transactions, only 27 are completed with the help of a mortgage loan, and the rest are paid with available funds. For Sofia, the figures are that out of every 100 transactions, 30 are with a bank loan. Experts explain these data by the fact that in our country many more people hold cash compared to Western Europe. To a large extent, this is due to the “gray sector“.
Investing in real estate remains one of the safest ways to generate profits. Bulgaria is also a country very suitable for this type of investment. “With the entire migration crisis in Europe, we are like an oasis, the people in our country are broad-minded, well-intentioned, and serious crime is very low“, says Yordan Yordanov, manager and co-owner of the company “Nov Dom 1”.
The forecast is that the country's entry into the eurozone will see increased foreign investment interest in Bulgarian properties. The only thing that can prevent this scenario is a collapse in the Western European economy.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be seen HERE