site.btaReal Estate Prices Will Go Up by 10%-20% in Next Two Years - Expert

In the next one to two years real estate prices, as well as the number of transactions in Bulgaria, will increase by 10- 20%, Ivaylo Simeonov, regional manager of Premier Real Estate, told BTA on Monday. He was among the speakers at a forum organized in Varna by Imoti.net. The event brought together experts, analysts and professionals from the sector, with the discussions focusing on market trends and the preservation of cultural heritage. The forum was also part of the celebration of the 25th anniversary of the first property portal in the country.

"It is logical that there will be an increase in transactions and prices, as Bulgarians are accustomed to investing in real estate and yet investments in stocks and bonds do not interest many people," Simeonov said. He also noted that property prices in the country have long been in euro, so Bulgaria’s entry into the eurozone will not lead to any significant changes in the sector.

The trend at the moment is to buy property in small settlements, the expert added. In his words, the country is witnessing a kind of "rural renaissance".

"What has been observed for years - to look for housing in big cities, is limited and the opposite process is observed - people are retreating to small settlements," Simeonov said. According to him, Bulgarians working abroad are very active on the market. Many are heading back home and looking for a suitable property, the expert explained. He specified that the other serious group of customers are those living in big cities who are looking for an option to move closer to nature.

In recent years, banks have held down interest rates, which has stimulated demand for property and people who do not have enough in cash are taking advantage of mortgage loans, Simeonov added. His estimate was that about 40% of transactions are made with such loans. The expert also said that clients' demands were rising, especially given that more buildings were appearing, made with better quality materials and more modern designs. According to him, the interest in housing complexes is constantly increasing, as there is higher security, space, greenery and parking spaces.

In cities where there is more new construction, prices are balanced, Simeonov further said. In his words, market distortion is more likely to occur in smaller towns where there is not a large supply. If the client is ready to pay, however, then the price suits him and is not too high, Simeonov added. He specified that the most expensive properties are in Sofia. Plovdiv and Varna are next, while Burgas is slightly lower. However, Stara Zagora, Shumen, Veliko Tarnovo are already catching up and this trend will continue, the expert predicted. He specified that in Central Europe prices are still significantly higher than in Bulgaria. In the cities outside the capitals they are in the range of EUR 2,500 to 4,500 per square meter, which means that they will increase in Bulgaria, Simeonov said.

According to him, in 99% of cases customers want their property to have a mandatory parking space or garage. The parking problems in big cities have led to amazing offers, Simeonov said and specified that in Varna a garage in a wide centre was offered for EUR 65,000.

Joining the eurozone will certainly ease the processes and foreign citizens who want to buy in the country will be facilitated, Simeonov added. He recalled that the Black Sea coast has always been attractive enough for those living in Europe. For 2-3 years, there has been a tendency for whole communities to form - from the Netherlands, Belgium, Germany, who buy in a certain area, the expert said. And he gave the example of Balchik, where the number of residents from the Netherlands acquiring property is constantly increasing.