Possible slight increase in property prices after joining the Eurozone

Bulgaria will become an even more attractive country for investments after joining the eurozone

At the beginning of the summer of 2024, it will become clear whether Bulgaria meets the criteria and whether it will be able to join the eurozone in January next year.

According to brokers cited by Bloomberg, there may be a slight increase followed by a more serious price drop of up to 20%. A short-term speculative increase in property prices in Bulgaria is expected upon the country’s entry into the eurozone. The price increase will not be as intense as in the last 2 years, with subsequent stabilization of price levels with variations in different types of construction.

Gradually, the real estate sector is starting to transform into a new “euro – exchange”. Prices in property listings are already in euros by 90%. This is preparing the consumer for what they will have to pay in real figures. Transactions are conducted solely in euros. You can check the current property prices on the website of one of the leading real estate companies Nov Dom 1.

Is the stability of the property market shaking?

2024 started with stable prices and the lowest interest rates on loans so far. For a while now, this sector has been flourishing, so it goes without saying that this trend continues. Experts do not expect a rise in prices at this stage, as they are confident that this industry in our country will remain profitable.

Will property prices rise after the adoption of the euro?

According to financial experts, including Dean Vasilev, CEO and founder of Creditland, Bulgaria will become an even more attractive country for investments, both in the real estate sector and in a holistic business aspect. The Bulgarian real estate market is well-prepared for entering the Eurozone, and adopting the euro would stimulate demand due to the expected increased interest from foreign investors in the property market. There might be a slight increase in property prices, followed by a more serious decline. Housing prices would experience some convergence towards prices in other EU countries and a slight increase, but not as much as expected for commercial properties.

There is no reason for concern, as compared to most countries in Europe, Bulgaria currently maintains some of the lowest prices. The market crisis in Germany continues, while properties in other countries like Spain and France are comparable to ours. The real estate market in Bulgaria is gradually preparing for the revaluation process. There are theories denying the unusually artificial increase in prices since the beginning of the inflation crisis, excluding the inflation factor.

Economic conditions, such as low mortgage interest rates and increasing salaries, will continue to support the growth of prices of goods and services, including real estate. The expected accession to the eurozone will also contribute to additional price growth. Analysis of the Croatian experience shows that prices increased significantly in the first year after adopting the euro, despite high mortgage interest rates.

Many companies offering real estate are prepared for speculation, but few are those we can trust. Before making a purchase, check the portfolio of the company you will be working with! They should have extensive experience and a solid number of completed deals. One of the leading real estate companies is New Home 1. They offer personalized consultation to clients with professionals. The brand stands out with a keen eye for their work. The agency mediates in the realization of purchases, sales, rentals, and investments in real estate in Varna and Sofia.