Two-room properties are currently being sold for an average of between 90 and 120,000 euros in Sofia. If the location is good, the investor and the building are of good quality, then a transaction of up to 120,000 euros for a two-bedroom is absolutely reasonable without problems. This is what the broker Dimitar Kalajjiev told bTV.
He advises to buy apartments on the green and with a good down payment of 20-30%, paying serious attention to the investor and his history.
“In the last year and a half, there are almost no good deals on the secondary market, i.e. with act 16. For me, the best investment today is if you find an investor who allows for 20% now and the rest on act 16. This gives mega good flexibility for buyers.
Whatever happens, we only have 20% put into the property. If a person does not have a good deductible and good income, I advise not to enter the market, to wait, to live in a rental. Living on rent is not so scary, we have to get used to it,” said realtor Dimitar Kalajjiev.
According to him, at the national level there is a decrease in real estate transactions by 1.5%, but in the big cities – Sofia, Plovdiv, Varna, Burgas, growth is noted.
“Two-room undersized homes are an appetizing bite for investors and speculators. Small-sized three-room apartments up to 90-95 square meters are good for young families who do not have that much money. We are talking about properties in new construction. Those who are looking for finished and ready, realize that the price is very high, they have no choice, and after suffering for 2-3 months, they turn to construction,” added the broker.
How will Bulgaria’s entry into the Eurozone affect the real estate market?
“The interest rates in the Eurozone are currently significantly higher than those in Bulgaria. A possible entry into the Eurozone at the beginning of 2025 will lead in the short term to a more serious increase in interest rates in Bulgaria – both the main and lending rates,” said financier Vladimir Sirkarov.
However, according to him, the European Central Bank will gradually start reducing the main interest rates.
“In the longer term, there is a very high probability that due to the macroeconomic development of Bulgaria and the Western European countries, within 2-3 years, the interest rates for lending in the Eurozone will be lower than the interest rates in Bulgaria.
I see speculation here with the current levels of the cost of credit and I don’t think that should worry people that much because mortgages are long loans,” he added.
Should we expect interest rates to rise?
“It will almost certainly happen, but the financial sector in our country is quite stable and liquid. Serious buffers are set aside, even if there is an increase, which is logical, it will be quite smooth and maybe start from the middle of the year,” assured the financier.
According to Sirkarov, measures are expected from the BNB to cool the market – a ceiling for the amount of mortgage loans or the ratio between income and the amount of loans.
Broker Dimitar Kalajjiev advises people to consider whether they can afford the loan installment if interest rates rise by 1-2%.
According to him, prices will rise in the long term. Kalaidzhiev predicts that in 10-15 years the average price for an apartment in Sofia will be at least 40-50% higher.
#broker #revealed #profitable #real #estate #deals #moment
