Автор
Илиана Иванова
| 20 февруари 2025 г.
Currently, the real estate market is experiencing an unusual level of activity for January. This dynamic trend could be attributed to the anticipation of Bulgaria’s entry into the eurozone, as well as the influx of foreign investors and funds seeking to invest in local properties.
In the high-end segment, nearly 50% of transactions involve mortgage financing, with an even higher percentage observed in the mid-range segment. Investment purchases are becoming increasingly common, fueled by the prospect of significant returns upon Bulgaria’s eurozone accession.
The average price per square meter currently hovers around 3000 euros, even for unfinished new constructions. Notably, we are witnessing the emergence of large buyers with substantial budgets who aim to acquire multiple apartments in new developments. These investors, often private individuals rather than funds, subsequently resell or lease these properties. All players are strategically positioning themselves for the euro transition.
Construction permits and available land are becoming scarcer, intensifying competition among buyers. Some investors are choosing to hold onto their properties, anticipating further price appreciation. Despite changes in bank lending practices, property prices have continued to rise over the past year.
Interestingly, geopolitical risks seem to hold little sway over investors. The market’s buoyancy is evident in the growing number of Bulgarians opting to purchase properties abroad, particularly in Greece and Dubai.
The influx of European funds and foreign entrepreneurs demonstrates the real estate sector’s strong performance. Continuous growth in both transactions and property values makes this sector a clear winner despite the complex economic climate.
A significant presence of Russian-owned properties in the country is observed, with Russian buyers continuing to seek new acquisitions.
While discounts are rare, deals are becoming increasingly difficult to close. The hope is that price increases will remain moderate, around 10%, in the coming year.
Suburbanization is also evident, with satellite towns like Ihtiman and Kostinbrod witnessing a surge in new developments.
The commercial real estate market shows office landlords holding firm, reflecting the acceptance of remote work by employers while maintaining physical office spaces.
Conversely, the rise in hotel prices has driven demand for vacation properties in destinations like Bansko and coastal regions. This trend has fueled price increases at a rapid pace.
