site.btaReal Estate Sales Up 10% in Q1 Year-on-year

There was a 10 per cent increase in real estate property sales in the first quarter of 2022, compared to the same period of 2021, Registry Agency data show. The increase in Varna (on the Black Sea) is as high as 34 per cent, head of the National Real Estate Association (NREA), Dobromir Ganev, told BTA. The increase in Burgas, also on the Black Sea, was 18 per cent, while in Sofia it was 8-9 per cent. A negligible decrease was registered in the southern city of Plovdiv.

This growth on the property market is impressive given the fact that 2021 was the strongest year in over a decade. There was an increase in the number of property sales despite the fact that the war in Ukraine started on February 24, prompting many Bulgarians to be cautious when it comes to buying real estate. There were also problems with the supply of construction materials, which reflected on the cost of new buildings, resulting in slower on market in the first quarter, Ganev said.

The overall picture during the first quarter of this year gives Ganev reason to confirm his earlier projections that 2022 will be comparable to last year, when an average of 10 per cent more real estate properties were sold compared to 2020.

The positive trend can be explained by Bulgarians' desire to invest their savings and protect them from the increasing inflation, or to upgrade to a larger home, as many families have continued working remotely despite the lifting of the anti-epidemic measures, the NREA head commented.

Ganev described as grossly exaggerated the information that 350,000 Russian nationals own properties in Bulgaria. These figures are much lower, he said, recalling that Russians started pulling out of the Bulgarian property market back in 2014. Many have sold their properties since then, while few of those who kept their properties along the coast are selling them. There are even expectations that once the war ends, there will be an influx of Russians trying to invest in real estate in Bulgaria in response to the possible post-war economic crisis in their country, the expert said.

Bulgarians are playing an increasing role on the vacation properties segment. Demand is currently high for such properties, Ganev said.