Bulgarians invest the most in real estate

The Bulgarian real estate market continues to develop, with a record number of deals concluded in the last few years. There are several reasons for this, namely low interest rates on loans and deposits, inflation, and consumer habits. Currently, it is most advantageous for consumers to take out a mortgage. According to official BNB data, interest rates on mortgages reached their historic low in 2022 – around 2.5%. Before the 2008 economic crisis, the cost of a loan was between 8 and 10%, which is three to four times higher than the current percentage.

Low interest rates encourage consumers not to keep their savings in the bank, but to direct their money towards investment. And one of the most preferred investments for Bulgarians has always been real estate. This is also the reason why Bulgaria has the highest number of apartments per person compared to Europe. According to research, there are 624 homes per 1000 people, or over 60% of Bulgarians own their own home.

There are several reasons why Bulgarians prefer real estate for investment: hyperinflation in the past, scarcity, limited choice, and the inability to purchase during the 70s and 80s of the last century. In recent years, there has been a high interest among Bulgarians not only in properties in the capital but also in rural properties located no more than 10-20 km from the city.

Mortgage interest rates are expected to maintain their current values this year as well. For this reason, the real estate sector will continue to reach record numbers of concluded deals.