site.btaHead of ACIB: Approaching Date of Eurozone Entry Affects Property Market, Demand for Loans

There is a revival of the real estate market and this is influenced by the approaching date of entry into the euro area, said Alexander Alexandrov, Chairman of the Association of Credit Intermediaries in Bulgaria (ACIB), in an interview with BTA.

According to him, it is evident from political promises that in 2025 a lot of efforts will be made for Bulgaria’s membership and consumers are active in their desire to buy property - especially those with cash, but not only them. Recent Eurostat data showed that the inflation rate in Bulgaria for February meets the price stability criterion for entry into the currency union.

"Properties bought now are expected to come up for sale after Bulgaria's entry into the eurozone, when prices are likely to rise, although not in a serious range," Aleksandrov said.

He predicted that if this country's membership becomes a fact from January next year, as the government is planning, we will probably see a minimal outflow in transactions. “There won't be any big upward shocks, but we can't expect lower house prices either. This is being influenced by higher builder costs for materials, labour, etc. as well as higher incomes and overall price growth,” Alexandrov pointed out.

The property market is also driven by the loan rates offered by banks because they continue to be attractive. The ACIB Chairman pointed out that the members of the association have been cooperating successfully with the banks in the country and are a trusted partner that facilitates the process. According to him, the financial sector exudes stability and this is also a positive influence for more transactions and predictability. 

The ACIB brings together licensed credit intermediaries registered with the Bulgarian National Bank to raise standards in the profession. Alexandrov noted that in 2024, the industry has seen significant success, which is a testament to the confidence of clients in credit intermediaries and the stability of the banking sector in the country.

In his words, Bulgarian consumers increasingly rely on these professional services to make informed decisions. He believes that the profession should become more and more visible and it is the accumulated expertise that should stand out.

The association is preparing a conference in September to bring together stakeholders to discuss best practices and opportunities for development in the field. The forthcoming adoption of the euro and its impact on the market will be one of the highlights of the event.