Over the past year, the rate of increase in real estate prices in Bulgaria has noticeably decreased. While in 2023 the average price increase was 21%, by the end of 2024 it is already 14%. The growth has especially slowed down in major cities: Sofia, Plovdiv and Stara Zagora, where prices increased only by 6.9-7.7%.
This indicates that the market is stabilizing and creating more favorable conditions for buyers.
What is happening in the real estate market?
1. Slowdown in the rate of price growth. Although real estate in Bulgaria continues to rise in price, the rate of this increase is no longer as rapid as in previous years. This gives the opportunity in the future to buy a home at a more affordable price without sharp jumps.
2. Difference in price dynamics by region. In some regions of Bulgaria, housing is still rising in price very fast. In Vidin, Kyustendil, Lovech and Sliven prices have increased by more than 20%. At the same time in Sofia, Plovdiv and Stara Zagora the growth does not exceed 7.7%, which makes these cities attractive for investors who are planning to buy a home.
3. New mortgage rules. Bulgaria has changed the terms of lending. Now banks issue mortgages for no more than 85% of the cost of housing, and monthly payments may not exceed 50% of the borrower's income. The maximum loan term is 30 years.
These measures are aimed at reducing the risks of market overheating (sharp rise in real estate prices) and make home buying safer and more predictable for buyers.
4. Deficit of offers in the middle segment. The majority of transactions (about 85%) are made in the middle price segment. Especially in demand are 2-3-room apartments, which quickly find new owners. Lack of such offers creates high demand and can support real estate prices despite the general slowdown in growth.
5. Demand for real estate is shifting to cities. Especially in the coastal areas of Varna and Burgas. Despite a decline in transactions in the third quarter, the market remains stable, and for the first nine months of 2024, a slight increase in prices compared to 2023 was noted.
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Good time to buy
The slowdown in house price growth opens up new opportunities for buyers. In contrast to previous years, when the cost of real estate skyrocketed, today the market is becoming more stable and predictable. This is especially important for those who want to buy a home without the risk of overpaying in an overheated market.
Also, limiting lending reduces the risk of price spikes and makes the market more balanced. The number of unreasonably high prices on the market will be reduced.
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