Growth in Property Prices in Bulgaria

Georgi Pavlov, executive director of a real estate agency, in an interview for bTV, commented that the results after the analysis show growth in property prices in Bulgaria. In some cities, there has been a pick-up in the number of sold properties, but there has generally been a decline. He commented that there is no artificial bubble in the real estate market. According to him, prices are now at or slightly lower than 10 years ago. At the same time, the income in that period has risen with between 30-40%.

He commented that buyers have more demands on the property they are looking for. The price factor also influences their choice, and they have to decide whether to buy a smaller home with the budget they have or go to a cheaper neighborhood to take the home of the size they are looking for. In his words, the number of people who borrow money to buy property increases every year. One reason is the advantageous conditions of the banks - interest rates today are 2 times lower than 10 years ago.

According to the analyst, Lachezar Bogdanov, next year in the Eurozone will start a trend of raising interest rates, which will appear in Bulgaria as well.

According to data provided by the BNB, the loans granted to households by August 2018 are BGN 10.15 billion. If at this stage Bulgarians draw an average loan of BGN 100,000 for 20 years at a rate of 3.3%, their monthly contribution is 570 BGN. If the interest rate is increased by 0.5%, the contribution will be almost 600 BGN.

Petya Petrova

Petya Petrova is a journalist, believer, and traveler.

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