site.btaReal Estate Price Rise Expected to Slow Further in 2024

The growth in real estate prices in Bulgaria will probably slow further in 2024, National Real Estate Association Management Board Chair Dobromir Ganev told BTA on Thursday. Ganev took part in a conference on Black Sea holiday property, held in Burgas.

He said his forecast was based on the current development of the economy and available data about wages, mortgage rates and market supply.

He commented: "It is always hard to make forecasts about the property market, but based on the factors I mentioned, no major changes are expected compared with the situation in 2023. Prices are growing at slower rates than before." The expert noted that real estate prices went up by 15% in 2022 and about 10% in 2023, and will likely increase by no more than 5% in 2024.

He is convinced that prices will not fall for a long time to come.

Discussing the number of real estate transactions, Ganev said: "In late 2022 we predicted that the number of transactions would drop, but not as significantly as in the United States and Europe. The number of transactions in 2023 decreased by some 10% compared with 2022. We can say that the market is in good condition, even very good, given that 2023 was the third strongest year after 2007. We have no reason to be dissatisfied with the development of the market. Those who have bought housing should rest assured they have made a successful deal."

Burgas was the only large Bulgarian city where new construction projects and permits increased in 2023. Sofia, Plovdiv, Varna, Ruse and Stara Zagora witnessed a decline. In most regions, real estate transactions decreased by 12-13% in 2023 against 2022, Ganev said.

To mention a curious fact, Nessebar, a relatively small coastal town, has recorded more real estate transactions than Burgas. This is so because the COVID pandemic drove many people to by property by the sea, and Nessebar had a lot of it to offer, Ganev said.

He does not expect mortgage loan rates to grow significantly in 2024.