"Real Estate Prices Disparity: Half of Bulgaria’s Regional Capital Cities Below 1400 Euro/m2, Sofia Leads at 2400 Euro/m2"
According to Dobromir Ganev of the National Association of Real Estate, only two regional capitals in Bulgaria have real estate prices above 1400 Euro/m2, with Sofia leading at 2400 Euro/m2, while 11 have prices below 1000 Euro/m2, and 12 fall between 1000 and 1300 Euro/m2.
Ganev attributes this wide price disparity to economic imbalances that have not been addressed by policymakers over the past three decades. He suggests that the real estate market is a reflection of broader macroeconomic trends.
The recent price increase can be attributed to several factors, including low-interest rates on housing loans, high transaction volumes in cities like Sofia (10%), Варна (6%), and Бургас (21%), as well as rising wages and internal migration.
Ganev also notes that the tension between strong demand and cautious investments, driven by conservative investor expectations, is keeping prices high. Surprisingly, interest in purchasing properties in smaller towns remains undiminished.
A new trend to watch, according to Ganev, is the ratio between real estate price increases and gross wages. For the first time, this ratio has turned negative in cities like Sofia, where real estate prices rose by 18% while wages increased by only 8%.
Bulgarians tend to be conservative when investing in financial instruments other than real estate, but in terms of the number of homeowners per capita, the country lags behind Slovenia, Croatia, and Romania.
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