Property deals and prices expected to drop by 10%

Experts expect nearly 10% drop in property deals and house prices by the end of this year.

During the coronavirus state of emergency, the real estate sector showed a decline of more than 50%, but since May it has resumed a rapid recovery, experts say.

The pandemic has also led to changes in demand.

Tihomir Toshev, credit consultant: There is a serious interest in buying houses, people who stayed in isolation for two months at home in apartments saw the inconvenience of this. We see interest in houses within a radius of about 50 km from Sofia in villages that are more acceptable.

Even before the crisis caused by the pandemic, experts expected a cooling of the real estate market after years of growth.

Dobromir Ganev, Chairman of the National Real Estate Association: This cooling was inevitable. 2019 - showed a stagnation, the market was very predictable.

In the first three months of the year, there is a decline in the real estate market, both in transactions and in mortgage loans. Exceptions, however, are cities such as Stara Zagora, Varna and Kyustendil.

According to experts, the decline in property purchases will be different for different categories.

Kaloyan Bogdanov, marketing manager in a real estate agency: Rather, price retention and a slight decline and not so slight a decline for substandard real estate.

Dobromir Ganev, Chairman of the National Real Estate Association: The residential properties segment will probably be the least affected, the office segment will probably be more severely affected, as well as the retail properties.

There is also a decline in the purchases of homes for investment purposes. However, non-increasing mortgage interest rates will help the market recover quickly, the experts say.

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