Housing prices have increased by 16% since the beginning of 2023
There is no expected decrease in prices, but according to experts, it is normal to observe an increase after Bulgaria joins the Eurozone.
NSI reports a 16% annual increase in housing prices in the country in the first quarter of 2024 compared to the same period in 2023, with real estate transactions increasing by 8.7%. After our country’s accession to the Eurozone, housing prices are expected to rise. On the other hand, the increase in incomes shows a tendency to invest in real estate, driving the market, as indicated in an analysis by Bloomberg by Yordan Yordanov, co-owner and managing director of the real estate agency “Nov Dom 1”.
The real estate market in Bulgaria shows regional differences with a slight calming down after the turbulent growth in the previous year. Varna, despite having the highest price growth in the country, records the lowest increase in transactions, while Burgas sees a surprising 43% jump in transactions compared to the same period in 2023. Naturally, a key stimulus for this is the good location with sea access and transportation. Observations show that in Varna and Sofia, larger properties are sought, including in gated complexes, and new construction dominates the market with increasingly higher quality. Investment interest in Burgas is focused on properties with rental potential. Its high sales/rental price ratio outlines Burgas as an attractive destination.
Will the sector thrive upon Bulgaria’s entry into the Eurozone?
Many financial and economic experts point to the euro as a springboard for the Bulgarian economy. This would fundamentally change the face of the real estate market, as it is heavily influenced by infrastructure, road quality, the condition of hospitals, and private enterprises. When our country improves its image, properties will also become attractive not only to Bulgarian buyers but also to foreign brokers. According to Yordanov, the Bulgarian market is still highly undervalued because buyers are mainly Bulgarians.
“Currently, Bulgaria has the lowest property prices in Europe. If the euro enters and adjusts well, the market can change very quickly. Taxes are unlikely to change in percentage terms, as well as interest rates on loans, but prices will rise because purchasing power will increase due to planned salary increases. As a result, foreign investors will prefer Bulgaria due to the still attractive conditions for property trading here. The market in Croatia is experiencing a price increase of 10-18% for the entire 2023. Following the example of the latest country to join the eurozone,” commented Yordan Yordanov in the podcast “Business Magnifying Glass: Bulgaria”.
Bulgaria is one of the most attractive countries for investments due to low interest rates and taxes. Leading real estate market companies develop various tools to increase investment income for their clients. An example is the program “Make money while you rest” by “Nov Dom 1” agency. Through it, the investment in real estate is guaranteed and secure, with a 13% increase in income on the invested amount and full capital recovery at the end. Using reliable and proven investment methods minimizes the risk of potential shocks from dynamic changes in the sector.