"One year is too short a period to go from rapid growth to decline. However, the market calmed down at the end of the year and we ended up with a 6-8% increase in prices in Sofia and Plovdiv, and slightly higher in some others cities."
Polina Stoykova – executive director of a real estate agency, said this in the studio of "Good Morning, Europe" on Euronews Bulgaria.
Here's what else she shared:
However, the market still tends to be quite active. Prices rose 20-30% in 2022, driven by both inflation and income growth. It is normal that with the calming down of inflation, this process of rising prices will also calm down. A balance has been reached in the market with higher prices and strong demand.
Last year, interest rates on loans hardly changed in our country, unlike other countries where there was a drastic change, and this led to an outflow of interest in real estate. With us, they are currently close to their historically lowest levels. The expectations in the banking sector are that even if there is growth, it will be small and smooth. But there are opinions that even a small increase may not be reached at all. This rather had an impact in 2022 when people had an uncertainty about buying property, but last year they returned to the market and saw that there were no uncertainties in their choice of a new home.
There will be another year of tighter supply, with many expecting property prices to rise as we enter the Eurozone. This leads to a hold-up in property supply as people wait for better prices. At the same time, many people will rush to buy before that happens. So again this year we will not see enough supply for the available demand. I don't think a drastic increase in prices is expected this year because they have increased a lot in the last 2 years and we have come close to the average European levels. Our acceptance into the Eurozone for the property market will go smoothly. Prices have been in euros for many years. There is concern and hesitancy, and this will perhaps have a slight impact on the market.
Mainly looking for two-room and three-room apartments. Houses in or around major cities. Looking for holiday apartments by the sea and ski resorts. This keeps the market quite active, it is mainly driven by ourselves, not by foreigners, because in recent years they have not been active. Mainly looking for new construction. What customers tend to pay is around €1,550 – €1,600 per square metre, the range is wide as there are different types of properties, but that's the demand at the moment. Deals over 3,000 euros per sq/m. happen harder. In the secondary market, deals are more likely to be negotiated and small discounts on the part of the sellers. We see that the sellers have softened and are ready for dialogue, which shows that they are aware that the peak in prices has been reached.
Now is the perfect time to sell a property. Sellers are more confused right now it seems, and buyers know what they are looking for.
I expect an active 2024 in the market. That's how she started. Whenever the year starts actively, we have noticed that it continues that way. Price increases are slowing down, it's a good time to sell, it's also a good time to buy because interest rates are low.
Source plovdiv24. bg
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