The housing price index in Bulgaria decreased by 1.1% on a quarterly basis in the second quarter

For the first time in years, the housing prices have stopped rising in Bulgaria The housing price index in Bulgaria decreased by 1.1% on a quarterly basis in the second quarter (during most of which the state of emergency was in force in the country), according to data from the National Statistical Institute.

The decline marks a reversal of the trend of the last nearly five years, as this is the first decline in the index since the third quarter of 2015, according to an analysis of NSI data.

The contraction of housing prices is more pronounced in the new apartments - by 1.3%, while in the existing properties the decrease is by 0.9%.

The restrictive measures that were in force in the second quarter also have an impact on annual growth. Compared to the same quarter last year, the growth rate of the price index slowed to 2.9% - the weakest rise in nearly five years. In the first quarter, housing prices rose by 4.7%, and in the second quarter of last year - by 5 percent. The growth of prices of new apartments in the country on an annual basis is weaker - 0.8%, and the existing increase is 4.2%.

In Sofia, housing prices in the second quarter fell by 1.7 percent compared to the first three months of the year, with the decline being more pronounced in new apartments - by 1.9%, and in existing ones it was 1.6%. On an annual basis, prices in the capital increase by an average of 3.8 percent. This is the weakest rise in the index since 2015, when the NSI published data on the new methodology.