Prices for Bulgarian properties rose by almost 10% in January and February of this year. Joining the EU has been the main reason for the increases. The demand for bulgarian properties continues to grow, driven by the increasing number of young people looking to buy housing, while supply is limited. The trend surprised Bulgaria real estate insiders, who expected prices to remain flat this year especially as they have risen so much in the run up to accession.
The higher prices are partly driven by the lack of supply of quality modern properties. Some local Bulgarian buyers are struggling to find properties in their favourite locations and this is also driving up the real estate prices. As young Bulgarians migrate towards the major cities in search of new jobs and opportunities this is also effective the supply and demand factors.
Most Bulgarian real estate brokers believe that the market will clam in the second half of the year and that more realistic prices will be available. Most Bulgarian buyers are still using mortgages and bank financing to purchase properties. The interest rates on Bulgarian mortgages are currently at record lows and this is encouraging buyers to take larger mortgages. Some brokers advise that it is not always the best option to take such a large mortgage because if you situation charges it may be difficult to make the loan payments. No everyone is listeing to this advice in the rush to get on the Bulgarian property ladder.