Experience Bulgaria’s Resilient Real Estate Market in 2023
As we enter the second quarter of 2023, Bulgaria’s real estate market shows remarkable stability despite global trends of market cooling. While other European countries and the USA experience noticeable changes, Bulgaria remains a stronghold for real estate enthusiasts. The primary reason behind this resilience is the country’s still-attractive interest rates on mortgage loans, keeping housing prices steady and preventing significant declines. Buyers today are more prudent, no longer rushing into purchases at any cost. Many can negotiate reductions of 5-10% off the original selling price. While no dramatic market changes are expected, we anticipate a decrease in transaction volume, a slowdown in price growth, and enticing discounts on offer prices.
Rising Demand for Homes
In May 2023, the construction sector showed a 1% increase in production compared to the previous month. Property transactions are on the rise in the second quarter, with notable growth in Sofia, Varna, Plovdiv, and Burgas. The total number of registered real estate transactions for the country increased from the first quarter of 2023, although it still lags behind the numbers recorded in 2022. Despite recent growth, transactions have seen a nearly 15% year-on-year decline for four consecutive quarters.
Bulgarian Cities and Their Preferences
In Sofia and the central part of the city, particularly the southern regions, remain the most preferred areas for homebuyers. Factors like proximity to the metro, public transport, parking options, and access to shopping and educational facilities make these areas highly desirable. Demand is also surging for properties around Sofia and close to the capital, including plots for single-family houses. However, finding such properties can be challenging due to increased demand and higher prices. Demand for office and commercial spaces has decreased slightly in the last three months of 2023.
Increased Construction and Supply
The property supply remains active, with a strong focus on apartments. Two- and three-bedroom apartments are in high demand, often fully finished and furnished. Prices for two-bedroom apartments range from €1,600 to €1,800 per square meter, while three-bedroom apartments vary between €1,500 and €1,700 per square meter. In the southern regions of Sofia and the central city areas, prices can start at €1,800 per square meter, with the ideal center's average price around €2,500 per square meter, depending on the location and property's features.
Continuous Growth Expected
Despite a decrease in demand in Plovdiv, property prices have remained stable. Average prices for properties vary between €800 and €1,200 per square meter, depending on the property's characteristics and location. Villages like Markovo, Belashtitsa, and Tsalapitsa are the preferred areas for homebuyers.
Holiday Property Market
The holiday property market has seen no significant changes from the first quarter of 2023. Demand for such properties remains sporadic, with inquiries lacking precision and seriousness. Property prices have remained steady, with quality properties in good complexes averaging around €1,000 per square meter.
Outlook for 2023
Bulgaria's real estate market shows remarkable resilience in the face of global economic fluctuations. The market's stability, steady housing prices, and increasing demand for larger apartments make it a strong contender for investors and homebuyers alike. Despite the ever-changing global landscape, Bulgaria's real estate market remains a reliable choice in 2023.