A Bulgarian real estate investor has said, in an interview with BNR, that the property market is moving from “euphoria to reality,” but insisted that there is no sign of a bubble or imminent price collapse.
Speaking to Bulgarian National Radio, investor Ivo Dimovski, who operates in both Bulgaria and Germany, argued that rising property prices are largely driven by strong domestic demand and higher construction costs.
“Bulgarians like to invest in property and this inevitably leads to the fact that prices become very high. There is no bubble in sight,” he said, adding that construction materials and labor costs have made housing significantly more expensive, leaving no room for a sharp correction. According to him, it is unrealistic to expect prices to drop dramatically, such as from 200,000 euros to 100,000 euros.
Dimovski also pointed to banks as a key driver of market dynamics. He noted that mortgage lending in Bulgaria has remained relatively cheap in recent years, with interest rates around 2 to 2.2 percent, and annual percentage rates reaching about 2.7 percent, which he said is still lower than in markets such as Germany.
He argued that credit availability plays a decisive role in sustaining demand, especially in Sofia, where he estimates that banks influence up to 60 percent of property transactions. A slowdown in lending, he said, would likely cool the market further and could affect pricing trends.
