Polina Stoykova at REAL ESTATE BUSINESS FORUM: The housing market in Sofia is calming down under the pressure of high prices

The real estate market in Bulgaria's major cities is calmer than expected, just months before Bulgaria joins the eurozone. The euphoria and large sales volume remained in the first half of the year, until the decision to accept the country into the eurozone. This was commented on by Polina Stoykova MRICS, Managing Director and co-owner of the real estate agency Bulgarian Properties, during the Real Estate Business Forum organised by the Imoti.net portal, part of Investor Media Group.

The market in Sofia is likely to calm down under the pressure of high housing prices, which, according to Bulgarian Properties, have risen by ˆ500 per square meter in one year. At this time last year, average prices reached just over ˆ1,800 per square meter, and now they are at ˆ2,310 per square meter, Stoykova said.

"Perhaps the warning lights are flashing and people understand that, however attractive the loans may be, they have to be repaid, so they are waiting," she noted.

At the same time, supply has not increased, as everyone is waiting for Bulgaria to join the eurozone, and according to Stoykova, this trend will continue over the next two and a half months. She noted that sellers are taking a wait-and-see approach before putting their properties up for sale, and those who do decide to take this step are announcing very high prices that they themselves do not believe they will achieve on the market, inflating them by 20-30% just to try.

Since August-September, the share of homes purchased on the secondary market has increased slightly, but these transactions are slow and difficult due to high prices, Stoykova said. According to her, the focus will continue to be on the demand for new construction properties, but everything will depend on supply, the specific parameters of the homes, and consumer confidence in construction companies.

Prices of new-build properties have also risen significantly, according to data from Bulgarian Properties. Last year, prices for mass new-build properties were at levels of ˆ1,700-1,800 per square meter, but now there are no properties priced below ˆ2,200 per square meter, even in Malinova Dolina, Stoykova said.

She also stressed that she does not expect a reversal in the property market and a decline in prices after the adoption of the euro, as, in her opinion, all market indicators support the market - interest rates are expected to remain low, the economy is developing, and incomes continue to grow.

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