2024-07-24 12:03:07
From the beginning of 2024 to the end of June, housing prices in the capital increased by another 8%, and in Plovdiv by even 17%. This is stated in the half-yearly analysis of the real estate market of “Adres” published on Tuesday.
The NSI data for the second quarter of 2024 has not yet been announced, but the other major agencies give roughly the same current assessment of the market.
According to the latest analysis of “Bulgarian Properties”, for example, the annual growth of housing prices in the capital is 18.2%, with half of this increase taking place in the second half of 2023. In Varna it is more – 23.5%, and in Burgas – 12.3.
According to “Adres”, low mortgage interest rates are only one of the reasons for the strong housing market and rising prices. But recently there has also been a decline in supply without a decrease in demand, and this has provoked the rise in prices to continue. According to the agency’s estimates from the beginning of the year to date
in Bulgaria there is a 20 percent drop in offers for sales of existing homes.
“We have been observing a steady trend since the spring – many people are postponing the decision to sell despite the high prices at the moment. Those who have a plan to invest the funds later – another property or starting a business, for example – remain in the secondary market. Some of the owners see no reason to part with their properties now”, commented Gergana Tenekejieva, executive director of “Adres”.
Only 10% of customers sold their property during the half year because they needed money
Around 18% of people make a deal to then buy another property, and over 30% simply exit the investment in the high price environment.
“Expectations that inflation or financial difficulties would cause many sellers to put their properties on the market, and as a result – prices would decrease, did not materialize. At the moment, we are not even observing potential factors that could lead to a decline”, says Tenekejieva.
According to Polina Stoikova – manager of “Bulgarian Properties”, the relatively limited supply of properties puts pressure on prices, but sellers often find it difficult to negotiate at the levels they want, because they have no real idea of prices. “If there is no registered interest within a month or two of actively offering a property, then the offer must be adjusted – the price, the way of presentation, the channel for accessing the market or something else,” said Stoikova.