Real estate deals on the Old Continent collapsed. The European market is weighing this impact on the sector after a spike in borrowing costs worsened at the start of the year, reports Bloomberg. Deals fell to their lowest levels since 2011.
The first-quarter total of 34.5 billion euros was down 26 percent from already low levels a year earlier, according to data compiled by MSCI Real Assets. It marked the seventh straight quarterly decline as uncertainty over the timing of interest rate cuts continues to drive a wedge between buyers’ and sellers’ price expectations.
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Office properties, the largest part of the commercial property market, led the declines in the first quarter, with volumes down 45%, with Paris figures being particularly dismal. The city recorded its worst ever quarter for office sales, with just eight deals totaling under €500 million.
Higher interest rates have sparked a sharp correction in European real estate, exacerbated by changing work patterns and increasing environmental demands, which weigh particularly heavily on older office buildings.
Decrease in transactions in Bulgaria
In the first quarter of 2024, we see a decrease in the number of real estate transactions compared to the fourth quarter of 2023, according to an analysis by Arco Real Estate. In Sofia, 7,298 transactions were registered, in contrast to the previous quarter, when 10,075 transactions were registered in the capital.
In Varna, 3,170 were registered compared to 3,860 for the fourth quarter of 2023. In Plovdiv, we also report a decrease in recorded transactions – 3,365, in contrast to the previous quarter, when they were 4,870. A decrease is also observed in Burgas, where 1,668 transactions were recorded compared to 2007 in the previous quarter of the past year.
The total number of registered real estate transactions for the entire country in the first quarter of 2024. was 43,799 compared to 62,398 in the fourth quarter of 2023.
Bulgarians with properties abroad must declare them to the National Revenue Agency – the automatic exchange in the EU issues them if they do not
The deadline is April 30
Most property sellers in Europe stuck to their retrospective book values and resisted price reductions, some left with no choice because of debt payments coming due or financing maturing, experts said.
This has gradually created enough conditions for property values to decline, raising expectations that the market will soon find a bottom and volumes may begin to pick up.
Between 180,000 and 230,000 euros are the prices of two-room apartments in Sofia in the luxury segment
The high-rise properties in Sofia that are currently on the market are 16,540 homes, and those under construction – 5,250
