The housing market in Plovdiv: Price growth is accelerating

Plovdiv is among the most dynamic residential markets in the country with increased demand and insufficient supply, leading to accelerating growth in property prices.

A more noticeable rise in prices began at the end of 2016, reaching 11% on annual basis in the third quarter of 2017, according to agency data. The average asking price of the dwellings in Plovdiv is 650 euro / sq.m. for this period, as transactions are made even at higher than average prices - about 700 euros / sq. m, according to companies data.

Currently, demand is outpacing the supply, and although many new construction buildings are on the market, buyers are still cautious about buying green. This supply is expected to be felt on the market after mid 2018, when the construction of new buildings will advance.

According to the realtors in Plovdiv, the preferred areas of purchase are the center, Karshiyaka, the area around the Rowing Base. Real estates are sought for both a main dwelling and an investment, and there is a foreign interest in investment due to the strong rental market.

Property prices in Plovdiv are about 40% lower than those in Sofia, and the rents that can be achieved are similar to those in the capital. This makes the rental yield in Plovdiv higher than that in Sofia and, accordingly, the housing market in the second largest city in Bulgaria is extremely attractive for investors from the country and abroad.

According to the Registry Agency, sales volumes in Plovdiv have dropped in the third quarter, but this is due to the large share of purchases of new construction and the not yet recorded deals with properties with this type of property.