Bulgaria Sees Surge in Mortgage Loans: Record-Breaking Growth Fuels Property Market

Bulgaria witnessed a staggering surge in mortgage loans in 2023, totaling a monumental BGN 6.39 billion. This unprecedented figure, revealed by the Bulgarian National Bank, marks a remarkable 18.77% increase from the previous year, fueling optimism within the property market.

The robust growth in mortgage lending reflects a buoyant property market, with individuals and businesses alike capitalizing on favorable financing conditions. Notably, the total volumes of new mortgage loans surpassed the BGN 5.38 billion mark recorded in 2022, underscoring the nation's burgeoning real estate sector.

Behind this impressive growth lies the significant contribution of non-affiliated registered credit intermediaries, who played a pivotal role in facilitating BGN 2.12 billion in mortgage loans. Their involvement reflects a broader trend of increased consumer confidence and demand for financial services in Bulgaria.

Maria Petkova, Chairperson of the Association of Credit Intermediaries in Bulgaria, emphasized the importance of credit intermediaries in providing high-quality service and ensuring regulatory compliance. With their expertise and guidance, borrowers can navigate the complexities of mortgage financing with confidence, she explained.

Despite the surge in mortgage lending, Bulgaria maintains a prudent approach to household debt, with households boasting one of the lowest loan-to-asset ratios in the EU at 14.7%. This cautious approach, coupled with robust deposit growth, underscores the nation's financial stability and responsible borrowing practices.

Looking ahead, industry experts anticipate continued growth in mortgage lending in 2024, signaling sustained momentum in the property market. With favorable financing conditions and strong consumer demand, Bulgaria remains poised for further expansion and development in the real estate sector.

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