Polina Stoykova: 2016 is extremely dynamic year for Bulgarian real estate market

2016-12-14   |  http://bnr.bg

2016 has been a very dynamic year for Bulgarian real estate market and for the first time in many years the trend has been entirely positive. Growth has been witnessed in sales and prices, as this growth in Sofia reaches two-digit numbers, Executive Director of Bulgarian Properties Polina Stoykova told Radio Bulgaria. These days, analysts have been observing a more mature market, dominated by domestic demand and by factors such as migration to big cities, rising incomes and very favourable conditions for mortgage lending, Stoykova said and added:

"In 2016 demand focused mostly on residential housing, predominantly in big cities. Sofia is leader in sales, but it should be pointed out that in Plovdiv, Varna, Burgas and Stara Zagora trends are positive too with sales growth reaching between 5% and 10%. Real estate prices marked almost the same growth. In Sofia the market ends the year with a 12-percent price rise, which is double the rise marked in the previous year. Furthermore, buyers have been looking for making investments in real estate and receiving rent. I must say that this year there is a trend of high demand in the segment of holiday homes. Currently, about half of the purchases of vacation homes at the seaside and in ski resorts are made by Bulgarians and before that this market used to be mainly dominated by foreigners."

According to Polina Stoykova, low interest rates on bank deposits that are close to zero, also encourage people to invest in real estate. This has a strong impact on the purchase of residential property including buying in pre-construction phase, which has been a rising trend in 2016. Currently, people have been cautious when making such investments, but are willing to take risks after checking the builder’s history and signing more reliable contracts:

"Of course there is always a risk when making a purchase in early stages of construction, but people are more willing to take this risk because currently demand is higher than the supply. Demand in 2016 has marked a serious growth. While people were still wondering if prices would fall and how the market would develop it suddenly became clear that the market was rising. As a result, buyers have returned to it."

In the past, many construction companies provided buyers in pre-construction phase with a discount that was because of the risk. Currently, however, this rule does not apply, Polina Stoykova says and adds:

"In fact, buying in initial stage of construction is up to 80-100 euros per square meter more expensive than the price of new homes sold on the secondary market. This is because supply was very limited in recent years and because new projects are of better quality. Builders use higher-quality materials and buyers are willing to pay these higher prices."

"Demand for prefabricated panel block housing remains stable and the market potential of this type of property is good, especially after the start of a national renovation program. On the other hand, there was no increase in purchases of homes in underdeveloped regions such as north-western Bulgaria. In smaller cities of the country prices remained unchanged, and in some cities they even declined. This is normal because real estate market follows demographic trends and economic developments,” Polina Stoykova says in conclusion.

Check our new listings in Sofia


  Read more news

Share
Belle Epoque Beach Residence
French style beach–front residence in the popular beach resort of Lozenets on the Southern Black Sea coast. The complex is completely finished and fully operational. There is a special offer for Summer'2019 – guaranteed rental of 5% annually.
See More

Îůĺ Íîâčíč

LATEST REGIONAL NEWS
Street Food & Art Festival in Burgas is a New Concept for an Urban Festival

Street Food & Art Festival is a new concept for an urban festival, its organizer Nikolay Todorov told Focus Radio.

The festival, held with the support of Burgas Municipality, is taking place in Burgas. More than 15 of the Best Street Food culinary artists in Bulgaria have been invited, Todorov said. "We are talking about mobile kitchens, kitchens on wheels, caravans, campers, truck... read more

13 August, 2019
LATEST REGIONAL NEWS
Archeologists unearth church from 6th century near Gabrovo

An early Byzantine church, 20 by 10 meters in size, made from rock blocks and brick layers, with a floor lined with ceramic tiles has been discovered by archaeologists.

It has two entrances on the south and west sides and an interesting altar section, as it had benches where clergymen were sitting, as well as a bishop's throne in the central place, Professor Hitko Vachev said. He a... read more

13 August, 2019
LATEST REGIONAL NEWS
Seaside Garden in Varna turns into large-scale arts and crafts exhibition

For the 23rd time the International Fair of Crafts and Arts “Bulgarika” will become a venue for a big number of artists and craftsmen. In the period August 1– 21, some of the best artisans in the fields of fine and applied arts, crafts and music will participate in it. Traditionally, the audience will actively participate in the fair as they will be able to take part in crafts or arts workshops or... read more

13 August, 2019
LATEST REGIONAL NEWS
Staro Zhelezare village once again hosts Street Art Village Festival

Until the end of August, the village near Plovdiv is once again hosting Staro Zhelezare Street Art Village Festival.

The village itself has no more than 400 inhabitants. Every year the people behind this project – artists Katarzina and Ventsislav Piryankovi and students of theirs from Poznan, Poland, transform the place, painting and drawing on the walls of houses and fences.
... read more

13 August, 2019

REQUEST DETAILS


Fatal error: Uncaught Error: Call to undefined function display_gdpr_fields() in /usr/hosting/bulgarianproperties-com/bulgarianproperties.com/foot.php:114 Stack trace: #0 /usr/hosting/bulgarianproperties-com/bulgarianproperties.com/bulgaria-news.php(297): include() #1 {main} thrown in /usr/hosting/bulgarianproperties-com/bulgarianproperties.com/foot.php on line 114