The share of the youngest among home buyers is growing
The share of people between the ages of 25 and 30, who take a mortgage loan for the purchase of a home, is growing. So far, this group has usually chosen to live. The main group of buyers remain between 30 and 45.
This is indicated by DSK Bank data, which, according to BNB data, in the first quarter of the year, is in the top of banks granted the most home loans with a volume of BGN 324 million.
The average amount of these loans in the last quarter is BGN 200 thousand in the country, and in Sofia it is BGN 240-250 thousand.
The average loan amount is growing similar to housing prices, but also to income – by about 10 % annually, Plamen Toteva, Director of Mortgage Loans at the bank, told reporters. He pointed out that the financial institution has a total portfolio of BGN 7 billion.
| According to the bank, the main group of mortgage loans is 30-45 years old, but the percentage of those of 25-30 years is increasing, who, contrary to previous generations, dare to borrow to buy their first home instead of living for the first time. He noted that this group is distinguished by greater demand and awareness of the property. The desire is expected to acquire a newly built home, which is generally more expensive. In general, they choose a two-bedroom dwelling because they do not have large amounts of saved to cover all the costs of the transaction and their self-involvement in the price of 10-15%. |
Its forecast is that the property market will be stable in the next 3 years with prices growing below 10% annually. Currently, about 90,000 transactions are being concluded for a year in 60,000 before the pandemic.
| Despite prices growth, properties in Bulgaria remain more affordable than those in more developed countries by criterion how much gross annual salaries reach for one property. According to him, 7 years of salaries for 70 square meters of dwelling are needed in Sofia, while the average in Central and Eastern Europe is 11 and even 14 in Prague, Toteva explained. |
« The capital constitutes nearly 50% of the mortgage market, with over 80% of activity concentrated
In the six largest cities in the country, « added Plamen Toteva.
Graphics: How to change the demand for homes by neighborhoods for 10 years
The income in Bulgaria as a catch -up economy will grow, with the average being at the moment half the average in the euro area countries. At the same time, interest rates on loans in Bulgaria are lower than those in the euro area – an average of 2.5% on mortgages at 3.3% in the euro area.
