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

Housing Loans Show Remarkable Growth in 2017

2018-01-22   |  novinite.com

Statistics of the Bulgarian National Bank (BNB) have finally detected a significant upheaval in the credit market after years of freezing around zero. Housing loans have risen most heavily - with a significant 7.4% last year, the figures show. In absolute terms, the increase in mortgage loans is close to BGN 650 million. By comparison, in 2016, the mortgage niche registered a minimum increase of 1.4 per cent. Thus, the total volume of mortgage loans as of December 31, 2017 is now 9.4 billion.

Real estate agents comment that the interest in these products was raised primarily due to the lowering of the interest rates, which already move around 4% per annually, as well as because of the rising incomes of the population. As a result, more and more properties, as well as an increasing percentage of their funding, are paid by bank loans rather than by their own funds. At the same time, bankers say that interest is far from being the main factor in the search for loans, but rather the overall economic situation.

Consumer loans also posted an increase of 5.8% or BGN 423 mln. Their total volume reached 7.7 billion BGN as of December 2017. Consumer lending moved around zero with a growth of only 0.6% a year ago. Total loans to households in 2017 registered an annual growth of 6% or 1.1 billion leva. The corporate lending situation is slightly weaker. The growth of business loans is 1.7%, compared to 0.3% in 2016. This type of loans increased by about BGN 500 million per year and by December 2017 reached more than 31 billion BGN. Total lending to the non-government sector marks growth of 4.8% to 52.9 billion leva, compared to 1.5% in 2016. The decline in bad loans is also reported. Uncalled consumer loans, for example, dropped by 13% at the end of 2017 compared to a year earlier. The decrease is from 916 million leva to 803 million leva, which is one of the lowest levels since the beginning of the financial crisis. Bad mortgage loans to households also dropped significantly - from BGN 1.5 billion in December 2016 to BGN 1.2 billion a year later.

However, the general level of non-performing loans in Bulgaria remains relatively high, according to a report by the European Commission. It states that the share of these loans in Bulgaria is 12.1% at an average of 4.6% in the EU. Savings continue to rise in 2017, it is also clear from the data from the central bank. Business deposits, however, jumped significantly - 13.8% a year to 22 billion leva. This is a double increase compared to 2016 when the growth was by 6.3%. Household deposits rose by 5.4% to 47.8 billion BGN in 2017. For one year, the population has allocated additional BGN 2.5 billion to banks. The savings growth is slightly weaker than in 2016 when it was 6.6 %.

Attractive selection of properties in Ski resorts in Bulgaria

Attractive selection of properties in Sunny Beach and the neighboring resorts

Attractive selection of new build residential developments in Sofia


  Read more news

Share
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
Central Park - the best-selling new development in Sofia in 2024!
Homes for sale in one of the largest new construction developments in Sofia!

A unique gated complex recreating the style and atmosphere of New York's Central Park. Modern buildings, space, greenery and breathtaking views! A future icon of the Bulgarian capital that will bring a new standard for quality of life. Choose your home now - big choice and attractive prices!
See More

More News

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
Company news
BULGARIAN PROPERTIES expands its operations with a representative in Shumen

We are pleased to announce starting operations in Shumen area, with which we continue to pursue our mission – to be present in every region of Bulgaria, providing you with professional service, security and full support in real estate transactions.

Our new regional representative for Shumen and the surrounding areas is Galina Kirilova – a licensed real estate appraiser...

23 June, 2025
Company news
BULGARIAN PROPERTIES now at a new address in Sunny Beach!

New season, new office, same trusted team!

With the summer season upon us, we are pleased to announce that the BULGARIAN PROPERTIES office in Sunny Beach has moved to a new location!

Our team welcomes you in Trakia Apartments complex, on the ground floor - right opposite T Market store.

📅 The official opening took place on 7 June 2...

10 June, 2025

REQUEST DETAILS