Will real estate prices fall in the fall of 2024
Industry experts define this period as an “overheating” of the market, while others see it as a harbinger of new changes.
In the past 2023, several basic assumptions were formed about what is expected in the real estate market in 2024. Some of them foreshadowed a fall in prices for apartments and other real estate due to rising interest rates. Other speculations were that demand would decrease, which might not be good news for the market.
Undoubtedly, the level of real estate prices in our country is influenced by many factors, including the political, economic and social situation. But don’t rush to get upset, but read the article to the end to draw your own conclusions – which property is better to invest in?
Regional differences in property prices in Bulgaria
Differences in property prices in different regions of Bulgaria are a topic of interest among buyers and investors, as well as among market analysts. These differences are the result of many factors, including economic conditions, infrastructure availability, tourism attractions, and demographic trends. In this section, we will take a closer look at how real estate prices are formed in different parts of the country, as well as which regions offer the most attractive opportunities for real estate investment. The analysis will help us better understand market dynamics and identify the main factors influencing regional prices.
Economic factors of pricing
In challenging times, especially in the 21st century marked by significant global changes, it is extremely important to ensure the security and preservation of the value of your investments. Investing in real estate in Bulgaria is an attractive option for those seeking financial stability.
This type of investment not only offers a physical asset, but also serves as a long-term investment that can effectively protect the value of the invested funds during periods of economic uncertainty.Real estate investing provides a safe haven for capital in volatile market conditions, thereby allowing investors to allocate their resources more wisely. The stability that real estate offers is especially valuable during periods when the value of other assets may be subject to significant fluctuations. The security of real estate investment in Bulgaria is supported by a stable property market and attractive prices, making such investments particularly attractive to long-term investors. Thus, investors not only protect their capital, but also have the opportunity to receive rental income and increase the value of the property over time.
Social aspects that can affect the price of real estate
The economic situation in Bulgaria shows how the country continues to develop within the European Union, reaching 62% of average GDP per capita, measured by purchasing power, by 2022. This indicator reflects the state of Bulgaria in comparison with other European countries, highlighting its economic achievements.
Evidence of the improving economic situation of households in the country is a significant increase in average quarterly income per household member by 22.5% in the third quarter of 2023 compared to the previous year. The stable unemployment rate, which remains below 4%, also demonstrates progress in maintaining employment despite the challenges posed by the COVID-19 pandemic.
COVID-19 has had a significant impact on the property market in Bulgaria, changing buyer preferences and the way people view their homes. The increased popularity of the home office has led to demand for housing in smaller towns and villages, where the quality of life is often rated as higher. This opens up the opportunity for the development of new residential areas and could lead to future investment in infrastructure and services in these areas to meet growing demand.
Political situation
Bulgaria’s admission to the eurozone could have a significant impact on the economy and especially on the real estate market.
Historically, entry into the eurozone has been associated with increased investor and financial market confidence, which can lead to increased investment and economic activity. Such events can increase property prices due to increased demand and improved economic prospects.
After joining the eurozone, the country also committed to tighter fiscal and monetary policies, which could help stabilize the macroeconomic environment.
This improvement in economic stability often leads to increased domestic and foreign investment.
There is also the possibility of a preliminary increase in real estate market activity ahead of the official adoption of the law in the eurozone.
Anticipating such economic and political changes over the long term requires strategic planning on the part of government agencies to ensure a smooth transition and minimize potential negative impacts on citizens and businesses.
Sale of apartments and real estate: key aspects
With the increase in the number of platforms for advertising real estate in Bulgaria, there is an accelerated saturation of the market with advertisements for sale and rental. This phenomenon can lead to an increase in average property prices as buyers and renters are faced with a wide variety of options and can often be misled by high-value offers that are perceived as the market standard.
Increased activity on social media and various real estate platforms creates the impression of a dynamic and accessible market, but it can also lead to unrealistic price expectations. For this reason, sellers and buyers should rely on professional appraisers and real estate brokers who have access to the most current and objective data on market conditions.
Real estate experts like Focus Real Estate play a key role in setting realistic prices and developing marketing strategies to ensure a quick and successful sale. They can analyze complex market trends and propose strategies tailored to a specific property and location, thereby increasing the likelihood of a successful transaction.
Despite the current activity in the market, real estate prices are not expected to decline recently. Developing an effective marketing and pricing strategy remains necessary to maintain the competitiveness of the Bulgarian property market. Therefore, you can safely consider options for selling or buying your property in the cities, towns and suburbs of our beautiful country.
