High rents, high parking space prices – for how long?

In the "Personal Finances" section, Svetozar Kostadinov focuses on the rising prices of rents and parking spaces – a topic that is rarely discussed in the media.

The focus is often on acquiring property, but as you know, everything in the economy is interconnected. When housing prices are high, rents also rise. There is also an increase in parking space prices because municipal policies in certain parts of major cities make parking spaces costly.

Let’s not forget the requirement in the Spatial Planning Act for residential buildings to provide parking spaces.

Housing is most often rented by people between 20-35 years of age either studying or having a well-paid job. And when deciding between renting and taking out a loan – a loan is better, even with a higher monthly payment than the rent. The reason is that after, for example, 20 years, you will own a property, whereas if you rent for 20 years, your landlord will have the money to buy another property.

How much does it cost to have a place to park your car?

The picture is similar, there are cheaper and more expensive ones.

The most expensive parking spaces and garages are in Sofia, particularly in the city centre, where parking is really difficult. Prices for parking spaces and garages will continue to rise along with other real estate, even at a slightly higher rate, due to people's inability to find parking spots.

For example, it would be ideal to have multi-story above-ground parking garages with 4-5 levels where people can park comfortably, or paid parking. Besides the buffer parking lots near metro stations, there is a lack of large parking areas. However, if we see such a change, experts expect a slight stagnation in parking space prices, otherwise, they will continue to rise.

Experts advise that it is better to buy a parking space or a garage, regardless of what car you drive or if you even have one. This is because you can earn money by renting it out, while a car will incur ongoing expenses.

"When apartments increase in price, it also affects the value of their associated parking spaces or the rental price of the apartment. It’s better to take a loan to finance the purchase of your own home and not – don’t give up the parking space or garage. Buy it, regardless of whether you have a car and what its market value is."