The year 2022 will continue at the pace of 2021 and the trend of increasing the number of transactions and real estate prices will continue! The latest NSI data show that annual inflation in Bulgaria accelerated sharply in November 2021, reaching 7.3%.

Continuing inflation will encourage even more people to invest their free funds in real estate. This will also lead to an increase in the share of investment transactions with housing. This is predicted by several major agencies in the country for the current year 2022, after last year's fixed growth in the number of transactions and prices.

So far, economists believe that inflation, which is "imported" for Bulgaria, will continue in the first months of the year, after which energy prices are expected to calm down. The expected devaluation of money will motivate more and more buyers to invest in a property to rent or simply driven by a desire to save their savings. This, in turn, will be reflected in an increase in the number of transactions in new construction, which in turn will increase new projects to be launched in 2022, the analysis said. According to experts, inflation will force more and more buyers to invest their savings in real estate, which will undoubtedly stimulate the dynamics of new construction. The development of new projects will be catalyzed by another factor. Many consumers will look for options to expand their households and make double deals, selling their homes to get bigger ones. Low interest rates on mortgages will give additional security to these customers.

 

Inflation will have a strong impact on the market at least in the first months of 2022. And the increase in consumer savings and their desire to keep them will increase the share of cash transactions.

 

In 2021, the market has witnessed the smallest share of mortgages in the number of transactions for the last 5 years - a trend that will continue to develop in the coming 12 months. There will be no predominance in the demand for one-bedroom or two-bedroom homes, as both types of properties will be of interest to buyers depending on their needs, the agencies said.

 

It is possible that we are witnessing a certain increase in the number of sellers who have previously bought for speculative purposes. They are aware that there will probably be no increase in mortgage interest rates in 2022, but it is still too early for longer-term forecasts. For this reason, next year they will see the best time to sell.

 

The deals are also expected to take place mostly without a discount and for a short period, as both countries are very well acquainted with market conditions and possible scenarios. The trend that started this year will continue - people over the age of 50 will be more and more clearly positioned on the market. Having already experienced a devaluation of money, they start from their negative experience and bet on the safest step they know.

 

The most preferred neighborhoods in Sofia will be able to be divided into two types. The first is that of the newly built ones, such as "Manastirski Livadi", "Krastova Vada", "Vitosha", "Ovcha Kupel", which will attract buyers with a diverse offer and quality new projects. The second type is that of the old established and prestigious regions such as "Ivan Vazov", "Yavorov", Center, the lower part of "Lozenets", which will continue to hold the highest market levels in the capital.

 

In Plovdiv, Varna and Burgas, the market will follow the trends in the capital - active deals, slight price increases, low interest rates and people's desire for security. In the smaller settlements the indicators will remain identical with 2021.