Within the framework of the year, a stable real estate market is expected. In the second quarter, compared to the first, the growth in the number of transactions is around 10,000 (in Sofia) and about 20% in Plovdiv. This shows that the volatility is behind us and a stable real estate market is expected. Of course, people need to make sensible deals, not at any cost. Regarding interest rates on loans in Bulgaria, no change is expected by the end of the year. This was stated by Kamen Kamenov, a real estate consultant at Arco Real Estate, on Bloomberg TV Bulgaria.
During the second quarter of 2024, the real estate market remains quite stable and active. There is no sign of the calm that was predicted. There is also no observed decrease in property prices, considering a record increase of 16% in housing prices in the country during the first quarter of this year.
„This development in the real estate market is due to anticipation. People hesitantly waited to see what would happen to prices, whether they would go down, and in fact, the realization quickly came that we are approaching the eurozone, the cost price is not decreasing, and people are again orienting themselves to invest their funds.“
These 16% turn out to be even a historically record-breaking increase for the past few years – almost eight. There hasn’t been such a record-breaking, quarterly increase in a long time, added Kamenov.
According to him, the market managed to bear this significant increase in property prices, with people who cannot afford larger three-bedroom and four-bedroom apartments or houses mainly focusing on two-bedroom ones, as long as the potential of the possibilities allows.
„If a good deal is made, it is better to buy in such a market than to keep the money available.“
„Loans are also a big factor, which remain low. There were also interesting speculations about raising interest rates. There is still no increase in interest rates. We are at some of the lowest levels in Europe, and people are taking advantage of cheap money,“ explained the guest.
It is difficult to predict whether interest rates on loans in Bulgaria will undergo significant changes for long periods ahead, but there will be no change within the year, say financial experts. Considering that we are at the lowest limits, there is nowhere for interest rates to go down further. With this accessibility, however, it is necessary to invest at the moment, shared Kamen Kamenov.