2024-04-13 14:05:02
for property appreciation
The tendency to increase property prices is not surprising, because in Bulgaria we have economic growth, a stable labor market, we also have a period of quite high inflation. Although we are currently seeing a period of decline in the annual, the monthly continues to accumulate, prices continue to rise. And in a similar situation, with an increase in income and looking for an alternative to preserve the value of money over time, it is normal for many people to turn to buying real estate.
This analysis was made by financier Vladimir Sirkarov to bTV.
We have been in a growing market for 12 years. No one can predict how long this will last and how it will affect the Eurozone. But today’s market is stable, calmed down, not as crazy as 2021-2022 when everything was sold. At the moment, there is some balance, explained the broker Dimitar Kalajjiev. People buy green.
At the moment, I advise – if a person can afford it and does not have a stable income, it is better to wait and live in a rental, he added.
Interest rates in the Eurozone are significantly higher than those in Bulgaria at the moment. A possible entry into the Eurozone in 2025, which is under serious question, will actually lead in the short term to some increase in interest rates in our country, explained Sirkarov.
Very soon, within 2-3 years, interest rates in the Eurozone may be lower than lending rates in Bulgaria. Here I see rather speculation with the price of credit. But I don’t think that should worry people because mortgages are long loans and it brings fear that is unwarranted, added the financier.
In the last year and a half, there are almost no good deals on the secondary market, that is, with act 16. Therefore, if you find a good investor who allows 20% now and the rest to be paid on act 16, it gives good flexibility for buyers, he added and Kalaidzhiev.
At the national level, we have a decrease of 1.5% in transactions, but in the big cities – Sofia, Plovdiv, Varna, Burgas, we have an increase in transactions. Basically, big cities set the tone in the market, the expert explained. Currently, two-room apartments in Sofia are sold for between 90 and 120 thousand euros on average.
My forecast is that in 10-15 years the average price in Sofia will be at least 40-50% higher, Kalaidjiev added.