At the same time, it is the new construction that determines the prices in the market.
According to financiers, there can be no long-term growth in prices with weak market dynamics.
The real estate market is a topic of discussion, part of the financial forum “Expo My Money”, which is being held for the second day in Sofia, BNR reports.
According to one of the largest brokerage agencies in Sofia, which monitors 84 districts in the capital and makes a comparison from 2005 to 2023, new properties set the market prices. Stoyan Gochev explains how price bubbles are formed and burst in the real estate market:
“In 2007, we had a peak in the number of property transactions in Sofia. In 2009, the drop was over 40%. This is a bursting bubble. Now transactions are really falling. New construction is one of the most important indicators. There is a price bubble in several places in Sofia where there is no new construction”.
According to him, the most active construction in Sofia at the moment is in Malinova Dolina. Active construction is also underway in “Ovcha Kupel” and “Mladost-4”. Prices are falling everywhere in these areas, but this should be a sign of attention for buyers, warns Gochev:
“Be very careful of big projects at low prices!”
The financier Kliment Robev also calls for attention, who advises to carefully calculate the price at which the bill ends:
“Anyone who has bought real estate in the last decade has made a successful deal, as of today.”
And another interesting point of view – interest rates do not determine the real estate market, says Stoyan Gochev:
“Access to money affects the real estate market. Inflation is always faster than interest rates on deposits.”
And the loud thesis of the discussion:
“New construction is collapsing. The amount of properties coming on the market is falling. Investors are waiting to see what happens.”
Therefore, financier Kliment Robev recommends: “Accounts, common sense and financial logic”.