Housing prices in Bulgaria with double-digit growth. Top tips for sellers
According to NSI data for the first quarter of 2024, residential property prices in Bulgaria have risen by 16% compared to a year earlier. Such accelerated growth has not been recorded since 2022. By comparison, in 2023, annual price growth was about 10%.
NSI also recorded a similar upward movement in household incomes, with data for the first quarter of 2024 showing that the country's average monthly salary increased by 16.8%year-on-year. At the same time, the rise in property prices compared to the end of last year far outweighs inflation and income growth over the period.
The highest growth in property prices is seen in Varna (23.5% compared to the same quarter last year), followed by Sofia (18.2%) and Burgas (12.3% compared to a year earlier), with the appreciation significantly higher for new-build homes.
The growth in prices and demand has provoked many sellers to be more active on the market, and according to the data of the Registry Agency there is also an increase in the number of completed property transactions. The first quarter in the capital was the strongest in terms of purchases and sales since 2008, while in Varna and Burgas, after more than a year and a half of declines, an increase in the number of transactions was registered by 12.8% and 9.7% respectively. Plovdiv reported an increase in transactions by nearly 4%.
A strong driver of the housing market in Bulgaria is mortgage lending, where interest rates remain among the lowest in the EU. The limited supply of properties for sale is also boosting prices on the market and creating the ideal environment for home sellers.
Despite strong demand and growth in the market, property owners often find it difficult to sell on time and at the levels they want. What are the most common mistakes when selling a property and how to avoid them? - see our tips:
What are the top tips from real estate agents to sellers?
Research the market. Often property owners have no real idea of the levels at which transactions are taking place in the market at the current time and place an unrealistic offer. It should be borne in mind that, in addition to the official statistics for the country, there are a number of specifics that affect the implementation of a particular proposal - the city and the area, the type of construction and the year of construction of the property, the characteristics of the building and the specific site, etc. Consultation with an expert in the field would help to avoid a number of mistakes in this area. Listing portals often contain properties that have not been marketed for years and it is important that owners have a clear idea of what data they are comparing and setting their competitive price on. We have a free and easy tool on our website for an express online valuation. The Property Price Calculator is designed specifically to guide buyers and sellers on the current state of the market and prices.
In the current market situation, if within a month or two of actively marketing a property there is no interest registered, then surely something in the offer needs to be adjusted - it could be the price, the way the property is presented, the marketing channels, etc.
Prepare the property documentation in advance. Often this is perceived by owners as a secondary issue and they do not engage with the topic until the negotiations and conclusion of a deal. At the same time, however, there are not a few cases in which it is the documentary irregularities that prove to be an obstacle to a timely sale. This is especially true for co-owned properties, inherited housing, objects in old buildings or rural areas, land, etc. If the owners live outside of Bulgaria, the situation is further complicated with signing of documents from abroad which takes time.
What documents we need when selling a property can be found in the detailed material on the topic here.
Make a good presentation. In the digital age when everything is online and audiovisual content is at a premium, a good presentation of the property is key to initial interest in our offer. This means preparing and organising the space in the property beforehand, especially in furnished homes, so that it looks clean, tidy, welcoming and homely.
Then it's the turn of the photos, which must be sufficient in number and present the property from different points of view, be of high quality, well chosen light and angle. Virtual tours of the properties are also becoming increasingly relevant, which involves taking a good quality virtual tour or a video giving an even clearer and more detailed view of the property's layout. Our experts are well equipped to create such content and we are actively including such content in our property portfolio because we see its strong role in showcasing a property.
Last but not least is the description in the listing. It should include all the important features not only of the property, but also of the building and the area and present well the competitive advantages of our offer. Sometimes owners themselves do not have a clear idea or are not aware of which features are valued and sought after by consumers and thus miss the opportunity to make their property stand out.
List your property with us! We will take care of everything!