Need for Residential Property – Key Factor for Bulgarian Property Market Development
The summer of 2015 has turned out to be dynamic for the residential market in the large cities especially in the Bulgarian capital city of Sofia. A deal growth of 15-20 % is accounted on this year.
This movement coincided with the recovery of the European and the Bulgarian economy as well as with the steady slump of the interests on bank deposits. It resulted positively not only for the property buyers but also people who have savings and are willing to make investments.
Thus, after 2014 was defined as the crucial year for the residential property market in Bulgaria, 2015 is expected to be the strongest year after the crisis. The market has ‘’stepped’’ on a steady growth which would result in success over the next years.
The need for a property is considered a main factor for the market development.
The activity of the buyers who acquire properties aiming to invest in it, amounts to 20 %. Two major groups of buyers are distinguished – those who purchase their first own home and those who sell a smaller and an older property in order to purchase a large, new and better located one.
They predominantly use mortgage credit so that they can fund the deal. The ‘’re-funding’’ still takes a crucial position in the property market – 10 -12 % of the drawn mortgages during the summer.
About 30 % of the buyers have managed to save cash money. This is why a huge part of the deals is financed cash.
Approximately 15-20 % of the buyers acquire properties for investment striving for higher incomes. The concentration of the economy in Sofia keeps attracting work force from the entire country and the demand of the rented properties in the capital city remained fairly steady even during periods of financial difficulties.