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Bulgaria’s housing market is on a winning streak during the Covid-19 pandemic

Photo: BGNES

Many Bulgarians have been recently searching for ground floor apartments with yard-terraces, residential properties with cozy gardens located in closed-type complexes, or apartments with large terraces offering stunning views, an analysis of one of the biggest real estate agencies in Bulgaria indicates.

Housing market in Sofia has quickly recovered in the recent months and the number of property deals is 30% higher as compared to the pre-pandemic levels in 2019. Sales volumes on Bulgaria’s housing market reached record-highs in 2021. Demand has exceeded supply and price growth has accelerated. Some people are searching for a new home. Others want to invest their money in a real estate property, because the interest rates on bank deposits are close to zero or even negative. Bulgarians, who returned to their home country during the coronavirus pandemic, have also contributed to the recovery of the housing market.

The average monthly salary in Bulgaria’s capital Sofia is growing faster than housing prices. According to data of the National Statistical Institute, the average salary in Sofia has reached EUR 1,037 a month, which has a positive effect on the purchasing power of the city’s residents. The quick access to bank loans and the continuing decrease of interest rates on mortgage loans also play a key role on the housing market, Polina Stoykova, managing director of a real estate agency said. According to data of the Bulgarian National Bank, interest rates on mortgage loans stood at 2.68% in September. In Polina Stoykova’s words, the average price of dwellings in Sofia reached EUR 1,200 per square meter in the third trimester of 2021, whereas one year earlier, it was EUR 1,115. In the third quarter of 2021, the average selling price of apartments in Sofia rose to EUR 116,750 from EUR 100,260 in 2020. The average price of residential properties in Sofia ranges from EUR 960 per square meter in Ovcha Kupel residential district to EUR 2,130 per square meter in Central Sofia.

Now is the right time to sell a residential property successfully, if you know how to invest your money later, Polina Stoykova said within the frameworks of the autumn edition of Forum Real dedicated to construction and investments in real estate properties in Bulgaria.

Foreign nationals are also interested in buying properties in Bulgaria. In 2021, the number of foreign citizens looking to buy a property in this country has seen a 25% increase year on year.

The question is what will happen with Bulgaria’s property market after the official adoption of the Euro currency, possibly in 2024. The number of foreign investors showing interest on Bulgaria’s real estate market is expected to rise when the Euro becomes an official currency in Bulgaria. As a result, housing prices will continue to soar, experts forecast.

Editing by: Miglena Ivanova

English version: Kostadin Atanasov

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