Property Prices Surge in Bulgaria: Why Sellers Are Finding It Harder to Close Deals

According to recent data from the National Statistical Institute (NSI), residential property prices in Bulgaria surged by 16% in the first quarter of 2024 compared to the same period last year, marking the highest growth rate since 2022. This increase is notably higher than the 10% rise observed in 2023. The data also reveals that the average monthly salary in Bulgaria saw a 16.8% increase year-on-year, yet this growth in income was outpaced by the property price escalation.

The highest price hikes were recorded in Varna, with a 23.5% increase, followed by Sofia at 18.2% and Burgas at 12.3%. The surge in prices was especially pronounced for new construction properties. This uptick in property values has spurred more activity in the real estate market, with an increase in transactions. In the capital, the first quarter of 2024 saw the strongest purchasing and selling activity since 2008. Varna and Burgas also reported a rise in transactions by 12.8% and 9.7%, respectively, while Plovdiv saw a nearly 4% increase.

Mortgage lending remains a significant factor driving the housing market, with interest rates in Bulgaria among the lowest in the EU. The limited supply of properties for sale has further inflated market prices, creating a favorable environment for sellers. However, despite the strong market demand, many property owners struggle to sell their homes at their desired prices or within their preferred timelines.

Experts from the Registration Agency offer several tips to avoid common pitfalls when selling property. One key recommendation is to research the market thoroughly. Many property owners are unaware of current market transaction levels and may set unrealistic prices. It is crucial to consider various factors such as the city, region,...