“We have high demand and low supply of properties. Whenever something is demanded more than it can be supplied, its price goes up. Despite the many issued building permits and the appearance of new construction, ready-made apartments are hardly available, and the demand is high.”
He stated this to “Bulgaria ON AIR” the credit consultant Tihomir Toshev on the occasion of the data according to which Bulgaria is in second place in terms of housing price growth in the European Union. According to him, during the months January, February and Marchwhich are generally weak in the sector, this year saw a 15% increase in the number of transactions and 24% growth in the number of mortgages. An active market inevitably leads to an increase in prices.
According to Toshev, the hopes of many Bulgarians that property prices sooner or later they will collapse and they will be able to buy an apartment in Sofia, which will be 500 euros per square meter in Sofia, they will not come true. In his words, they eventually they will have to make a purchasewhich they will have to pay double the price.
“Incomes have also increased in recent years due to inflation, unemployment remains low. It makes more people feel relaxed, make a decision and buy a property, even at these prices.”
According to him, more and more Bulgarians will have to take advantage of the possibility of a mortgage loan. He gave an example of the purchase of a two-room apartment in the center of the capital, which it costs between 200 to 300,000 euroswhich can hardly be done without a loan.
Property expert: Renovating old buildings is like putting makeup on a dead man
Tags: High demand supply led record rise house prices Bulgaria
