If we enter the Eurozone in 2025, property prices will jump by up to 15-18%

The forecasts for the new year are that properties will sharply increase in price, with one of the main factors being our long-awaited revaluation.

It comes as no surprise that we are facing another dynamic year for the real estate market. The bubble will not burst, on the contrary – prices will reach peak levels. According to the forecasts of the British economist Fred Harrison, outlined in his 18-year real estate market cycle, 2025 will be the culmination in the market’s development for the period.

For the Bulgarian real estate market, predictions have been coming true within the last 5 years, albeit at lower values.

Yordan Yordanov, Managing Director of “Nov Dom 1,” one of the leading agencies in Bulgaria, believes that the prediction depends on various geopolitical factors, including our accession to the Eurozone and stable governance. At this stage, it cannot be definitively assessed whether Harrison is right because there are many uncertainties facing our country. Let’s still consider the possible scenarios!

What does 2025 hold for the real estate market in Bulgaria?

The outlook for Bulgaria’s accession to the Eurozone is becoming increasingly optimistic. At this stage, we can conclude that the country has met almost every necessary criterion for currency conversion, including taming the inflation rate. We can boldly link property price forecasts to this pivotal moment for our economy. According to Yordan Yordanov, when our country joins the Eurozone, property prices are expected to soar. “If Bulgaria enters the Eurozone, a sharp increase in property prices is expected, for example, let’s say around an average of 15-18% for the first year, and there will certainly be additional interest.“, the expert comments.

Experts cited by Economic believe that there will be a decline in demand and sales in the real estate market. This is widely observed in the new members of the currency union and is due to two factors: two groups will drop out of the demand – those trying to “clean” their gray money and those expecting the euro to further raise housing prices.

Yordan Yordanov comments that in Bulgaria by 2024 there is a serious outflow of investors, but it should not continue in the future, especially if the main factor is the Eurozone. “The economy is not driven by domestic consumption, but by external, as we have strong domestic consumption, but our external consumption has stopped at a -3 coefficient of net exports. In short-term perspective, the future looks promising, but if Bulgaria maintains this level of investor loss, our economy may experience slight tremors, which will affect the market in any case.” – the expert believes.

What does 2025 look like for the leading real estate centers?

At the end of last year, the construction of a new section of the Sofia metro began, which will add about 4 kilometers of new tracks and will connect key areas of the city. This project is expected to be completed by 2025. The purchase of 500 new vehicles is planned, including 150 new trams and 280 buses. This investment is part of a larger modernization project worth over 1 billion leva. “Property prices in the given areas will immediately increase. The closer a building or property is to a metro station, the higher its price will jump, and it will be raised immediately by about 10%,” says Yordan Yordanov.

Regarding our maritime capital, he predicts that there will also be a sharp rise in prices: “I think that by 2025 there will be restrictions on construction in Varna. Then there will definitely be a price jump because of a market deficit, resulting in less new construction, which would slowly and steadily increase property prices.“

2025 will be a fruitful year for real estate investors. If you haven’t purchased a property yet, the right moment is now. A crucial factor for a successful investment is consulting with an experienced agency with a diverse portfolio. “Nov Dom 1” could be your springboard to success in the upcoming year. This is an agency with over 13 years of experience in the real estate sector, promising its clients up to 20% annual profit.