In the 2nd quarter of 2024, the housing price index in Bulgaria increased by 15.1% year-on-year, which is slightly lower than the 16% growth in the 1st quarter. Real estate in new buildings rose in price by 15.6%, and ready-made apartments and houses by 14.8%. These are the data of the National Bank of Bulgaria.
This trend was noticeable in the six largest regional centers.
Several factors contribute to the price increase: an increase in household incomes, high credit activity and historically low interest rates on new housing loans.Negative real interest rates on deposits also push people to enter the housing market.
The house price-to-rent ratio, a common indicator of overestimation or undervaluation of housing, remains 43% above the average.This suggests that households are buying homes not only for immediate financial gain, but also in anticipation of future capital gains or considering housing as a stable asset in the face of negative real interest rates.
The volume of completed housing sales increased by 26.2% in the 2nd quarter compared to the previous quarter.Source: Novinite