Own Home or Rent: Experts Analyze the Current Situation of the Bulgarian Real Estate Market

The real estate market in Bulgaria is undergoing a period of transformation. After several years of intense ascent, a process of "normalization" is being observed, in which price growth rates are slowing down but have not stopped completely. The topic was the subject of discussion on the program "Your Day" on NOVA NEWS, where financial and real estate experts analyzed current trends.

Veneta Hristova, a member of the Management of the National Association "Real Estate" (NSI), noted that despite the slowdown, prices continue to move upward, albeit more moderately. She emphasized that one of the main indicators of housing affordability is the ratio between the average wage and the price per square meter, especially in Sofia, which remains one of the most expensive capitals in Europe according to the Global Property Guide ranking.

According to Hristova, as long as monthly rents remain at a level close to the size of a typical mortgage payment, consumers will continue to prefer buying their own home. She predicts a stabilization of the market rather than a sharp decline, noting that more serious corrections are already being seen, primarily in the secondary market.

Financier Levon Hampartsoumian added that in Bulgaria there is a strong tradition of property ownership, which is a factor for market stability. However, he pointed out that the future segmentation of the market will not depend solely on financial parameters, but also on factors such as quality of life, urbanization, and sustainable urban development.

Hampartsoumian also made a comparison with developed economies, mentioning Switzerland, where high prices often exclude the middle class. For the Bulgarian context, he pointed out that the main challenge is not just the price, but also the problem of over-construction in large cities, which directly affects the quality of the urban environment and the future value of properties.