In 2021 and so far this year, banks in Bulgaria have recorded growth in the average size of mortgage lending for the purchase of a primary residence 

This is mainly due to two factors, namely the increase in the average income of Bulgarians and the favourable lending conditions associated with low interest rates.  Unlike 2019, when bank credit was a way of financing around 48% of the population, today more than 50% of concluded real-estate transactions are with a mortgage loan.

According to statistics from Titan Properties offices, the average buyer looking to purchase a home is mainly turning to larger properties—three-bedroom and four-bedroom apartments. Having a terrace, parking space or garage, and a lift in the building are major advantages. Most buyers prefer renovated and furnished apartments. New-build properties are increasingly in demand, with the emphasis on quality and the materials used, while interest in older panel-built homes is declining. The situation is different for our clients who are buying a home as an investment. They prefer off-plan deals because of the favourable prices and conditions. The property characteristics are different here too—the majority of demand is focused on two-bedroom apartments with an average size of 60m/2. With this type of investment, if the client wants bank financing, the building must first receive ACT 14.

Where demand for property purchase is concentrated

Demand is concentrated mainly in Bulgaria’s major cities—Sofia, Plovdiv, Burgas and Varna. The capital takes first place, with the market’s dynamics continuing to grow at an impressive pace. We can also confidently speak of a shorter time needed to sell a property. Deals are concluded quickly, and a property listed at a fair and favourable market price does not stay on the market for more than a month. The most affordable properties are those in the outskirts of the cities and off-plan properties. The price of a given property is determined both by economic factors and by its individual characteristics such as location, type of construction, size and condition.

Where does Bulgaria rank in the home ownership standings in Europe

A Compare the Market Australia survey of 26 countries shows that Bulgaria ranks 7th in Europe for the highest rate of home ownership and is the country with the lowest average price per sq m and the lowest rents, despite the imbalance between supply and demand. The real-estate market in Bulgaria is stable, and sales growth and the number of concluded deals are expected to continue rising.

Conclusion

The conclusion from Titan Properties’ analyses is as follows—buyers fall into two types: market participants who live in rented accommodation and prefer to „pay a loan instead of rent“, and those who take advantage of the favourable real-estate market climate to sell their old home and buy a larger one in a new building, or simply expand their property portfolio with a larger property in a new and modern building.