0
Hello,
Favourite properties (0)
Saved searches
Selected for you
Notifications
Subscriptions
Settings
Sign out
Close

Housing Price Determinants and the Price Cycle in Bulgaria

2011-06-14   |  Polina Stoykova, Chief Operations Manager of BULGARIAN PROPERTIES

Polina Stoykova, Chief Operations Manager and Head of the Research Department of BULGARIAN PROPERTIES presented a paper at the Summer Conference of the International Academy of Business and Economics in Barcelona, Spain on 3rd June. This paper is published in the current issue of the Journal of International Business and Economics.

The title of the paper is: 'Housing Price Determinants and the Price Cycle: Are the Fundamentals Valid, What is Specific and What Steers the Cycle?' It is the first paper focusing on the real estate market in Bulgaria and comes as a result of months of close observation of the Bulgarian property market, collection and interpretation of market data, all supported by BULGARIAN PROPERTIES and its Market Research Department.

Download a brief presentation of the article from here

Here is an abstract of the paper:

The past decade was very dynamic for the real estate sector throughout the world and especially in Bulgaria, which was often ranked in top 3 of fastest-growing property markets. The housing prices in Bulgaria started the decade at much lower levels compared to all other EU countries in year 2000. Although house prices in Bulgaria still remain on average far below western European levels, they have been catching up rapidly, with real double-digit annual increases, followed by a huge drop of around 40% from 2008 to 2010. This market started developing, went through a boom and then a bust – all this in a period of just 10 years. This was actually the first decade of the existence of a proper real estate market in this post-socialist country, which is presently a member of the EU. Now a lot of questions are raised about how the property market in Bulgaria functions and what are the main determinants of the house prices. Are the fundamental determinants of house prices valid in Bulgaria or there is something specific in this country? What leads the cycle – the GDP and other macroeconomic indicators or the real estate? The current article provides analytical answers to these burning questions using enormous amount of originally collected data and other relevant sources.

The main findings from the conducted research are the following:

• The fundamental long-term housing price determinants are also valid in Bulgaria.

• However, there are some cyclical deviations from the long-term trend which should be explained through the theory of the short-term property price determinants.

• In order to forecast the Bulgarian real estate market the short-term determinants should be used and the general economic development should be considered.

• There are 2 main drivers of the property prices in Bulgaria and their effect appears with a lag of one year.

The participants at the conference expressed a great interest to the topic, to Bulgaria as a developing and attractive property market and to the future development of the real estate markets globally. Many questions were asked and suggestions for future research given, which will be taken in account for our future research projects.

If you wish to receive more information about the article and its findings, please reply to this e-mail with your request

Share
Hot properties in Bansko - the best offers are here for you! ⛰️
Buy your own property in the top ski resort in Bulgaria! An all-year-round resort suitable for winter and summer tourism with the best prices in Europe! Holidays in your own property without the need for hotel reservations!
See More
Festa Chamkoria Forest Residence - Turnkey Apartments for Sale in Borovets
Feel at home in Borovets! Buy your own vacation apartment in a completely finished and operational complex with quiet location among a century-old pine forest. Available studios, 1- and 2-bed apartments at attractive prices, no buyer's commission. With guaranteed rent!
See More

More News

latest news
Bulgaria Joins the Eurozone on 1 January 2026

In a historic and long-anticipated move, the Council of the European Union has given its final approval for Bulgaria to adopt the euro as its official currency. As of 1 January 2026, Bulgaria will become the 21st member of the euro area, marking a significant step forward in the country’s European integration.

This milestone is not just symbolic — it represents a major economic achi...

09 July, 2025
latest news
Two decades of Santa Marina complex – a sustainable model for coastal living

The holiday complex in Sozopol offers well-developed infrastructure and a variety of opportunities for relaxation and entertainment.

In 2025, the Santa Marina holiday village in Sozopol celebrates its 20th season – an important milestone for one of the most successful and recognisable projects on the Bulgarian Black Sea coast. Over two decades, the complex has established itself as ...

07 July, 2025
Company news
BULGARIAN PROPERTIES Agents of July 2025 🏆

Your experts in a fast-evolving Bulgarian property market!

June was an impressive month for the real estate market and a strong close to the first half of the year. Deals were finalized at a high pace, we opened a new office in Sunny Beach, launched operations in Shumen, appeared in national media, and reaffirmed our leading market position!

We are proud to present o...

02 July, 2025
Press & Media
What to expect for housing prices in Bulgaria after the introduction of the euro?

Property prices in Sofia are still significantly lower than those in other European capitals

How will the property market in Bulgaria change after we join the eurozone? This is a key question for both property owners and those considering a purchase. Will prices rise? Will there be a slowdown? Should I buy, sell, or wait?

The experience of other countries shows that a...

30 June, 2025

REQUEST DETAILS