The Bulgarian real estate market experienced a important surge in 2024, defying expectations in a volatile global economy. While the overall economic climate presented challenges, demand for Bulgarian properties continued to climb, leading to exciting predictions for the year ahead.
According to Mona Laskova, owner of a Bulgarian real estate company, “A smooth rise in prices was observed. The deals were more.We see a trend that people are already searching for their own needs. The demand for three-room apartments is greater. In the mind of a Bulgarian, it is fixed that he should have his own home, and not live in a rental.”
Strong Demand for Established Properties
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Laskova notes a preference for older properties, but with limited supply, this fuels competition. She explains the current market dynamics: “At the moment,there is also quality new construction on the Bulgarian market. There is also quite a lot of interest in new construction. The maximum loan withdrawal period is 30 years. This should not be a concern for buyers. 85% of the assessment is covered by the bank. We have a higher deductible expected from buyers. We have a 50% debt, 50% income split.This can be a problem for people with lower incomes.”
Looking ahead to 2025: Euro Adoption and Price Projections
While significant price changes aren’t anticipated beyond the impact of euro adoption, laskova forecasts a significant increase. She predicts, “Laskova expects a price jump of over 15%.” The shift to the euro is expected to significantly impact the market.
The increased demand extends beyond apartments. Laskova adds, “There is a great demand for houses. Post-covid, people prefer living in a house, and supply is low.” This trend mirrors similar shifts in the U.S. housing market following the pandemic.
Key areas experiencing robust growth include Plovdiv, varna, and Burgas, with Varna’s prices rapidly approaching those of Sofia, the nation’s capital. These cities offer a blend of established properties and new developments, attracting both domestic and international buyers.
Bulgarian Real Estate Boom: An Interview with Emil Ivanov
World Today News Senior Editor: Welcome back to World Today News. With me today is Emil Ivanov, a leading real estate analyst specializing in the Bulgarian market. Emil, thanks for joining us.
Emil Ivanov: It’s my pleasure to be here.
World Today News Senior Editor: We’ve seen some unbelievable figures recently regarding the Bulgarian property market. Activity seems to be booming despite the global economic slowdown. What’s driving this surge?
Emil Ivanov: There are several factors at play. Firstly, there’s a strong pent-up demand for housing in Bulgaria. Many Bulgarians prioritize homeownership, and a desire for stability and their own space, especially after the pandemic, is driving a lot of this. Secondly, we’re seeing increasing interest from foreign buyers, attracted by Bulgaria’s relatively low property prices and it’s stunning coastline and natural beauty.
World Today News Senior Editor: That’s interesting.The article mentioned strong preference for established properties. Is that still the case?
Emil Ivanov: Yes and no. While there’s a definite trend towards older properties in established neighborhoods for their charm and often larger living spaces, there’s also growing interest in new developments. New constructions offer modern amenities and energy efficiency, something many buyers seek. The balance depends on buyer’s personal preferences and budget, of course.
World Today News Senior Editor: Looking ahead to 2025, the article notes the potential impact of euro adoption. Can you elaborate on that?
Emil Ivanov: The switch to the euro is a critically important event, and it’s expected to boost the Bulgarian real estate market further. Increased investor confidence from joining the eurozone and the potential for lower interest rates could lead to even greater price increases. The article mentions a 15% jump, and that’s within the realm of possibility.
World Today News Senior Editor: We’ve talked about apartments, but what about houses? The article mentions a high demand there too.
emil Ivanov: Absolutely.The pandemic experience seems to have made many people reassess their living situation. With remote work becoming more common, the dream of a house with a garden is more attainable for many. Unfortunately, supply isn’t keeping up with this increased demand, further pushing up prices.
World Today News Senior Editor: which cities are most attractive to buyers right now?
Emil Ivanov: In addition to the capital, Sofia, cities like Plovdiv, Varna, and Burgas are experiencing considerable growth. Varna, with its seaside location, is becoming increasingly popular, and its prices are catching up quickly to Sofia’s.
World Today News Senior Editor:Well, Emil, thank you for sharing your insights and painting such a dynamic picture of the Bulgarian real estate market. It’s certainly an exciting time for the sector.
Emil Ivanov: You’re very welcome. It’s an exciting time indeed, and I expect to see continued growth and development in the coming years.
