Until recently, Bulgaria’s real estate market seemed a fairy tale told by a developer-type Hans Christian Andersen. High returns, quick profits, an omnivorous market gulping up projects from scratch. That magic world gave not only vendors, but also buyers a blissful life. They would obtain not only a home but also a rock-solid investment to safeguard them against inflation and jittery financial markets.
Mortgage monthly fees would be lower than the rent they would otherwise have paid for their apartments. At the same time, rising real estate costs generated good profits should the owner opt for sale. National Statistics Institute data shows that the value of homes more than tripled throughout the 2002-2007 period. The hike was most tangible in Sofia, and in individual neighbourhoods rates leapt by 50 per cent last year alone, whereas the average ask price for a sq m surpassed 1000 euro. Banks enriched the fairy tale scenario by helping many a Dancho (as the ad went on) say “yes, yes” to the mortgage contract.
