Housing prices in Bulgaria are rising rapidly thanks to the lower credit and deposit interest rates and the stable economy
The property market in Bulgaria is experiencing a rise, due to the record low deposit interest rates which are encouraging real estate investment, says the online GlobalPropertyGuide.com.
After five years of stagnation the real estate market situation is improving noticeably.
The capital Sofia is in the lead of this recovery, as the price increase percentage is double. Such cities as Plovdiv, Varna, Burgas and Stara Zagora follow the leading tendency.
For the twelve months of 2016 and up to the third quarter of that year the real estate price index in Bulgaria has marked a growth of 8,8 percent (9,79 percent considering inflation rates) which is the greatest increase in the last three months of 2008 up to now. In comparison, a year earlier, an increase of 2,4 percent had been noted.
The increase for the third quarter of 2016 in comparison to the previous three months is 1.59 percent (1.29 percent considering inflation rates).
Towards the end of September 2016 the prices of new dwellings have increased with 8 percent on an annual basis (8.6 percent considering inflation rates) against a rise of 4.9 percent during the second quarter. The increase is with 3.8 percent (3.3 percent considering inflation) compared to the previous three- month period.
The record-low interest rates to deposits have encouraged people to invest in properties, including in dwellings still under construction.
The online article quotes that the previous housing boom in Bulgaria was during the period 2000 – 2008, as housing prices in the country increased four times for that period. The bubble, however, burst towards the end of 2008, as real estate prices marked their all-time low of 25.7 percent during the crisis.
In 2010 the decrease in prices was delayed a little below 5 percent (8 percent considering inflation rates), in 2011 it accelerated slightly up to 5,8 percent (8,75 percent considering inflation rates). In 2013 and 2014 the decrease in prices was delayed a little below 2 percent, аnd since 2014 prices have been marking an increase of 2,8 percent (3,65 percent considering inflation rates).
In 2015 the increase accelerated to 4 percent (4.23 percent considering inflation rates) as the forecast for Bulgaria’s property market is to remain strong during the current 2017 year.