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Bulgaria first-half average home loan size up 25% year on year

The size of the average home purchase loan increased by 25% year on year to 38,600 euro in the first half of 2007, said local loan consultants Credit Center. The upturn is attributed to the higher percentage of the home price covered by the mortgage and the increase in property prices. Some 40% of the first-half home purchase loans disbursed covered around 80% of the property price. Credit Center said June mortgage lending outpaced December 2006 which is unusual because the last month of each year is typically the peak of mortgage lending.
The consultancy company said higher incomes and the great number of competitively prices mortgage products are fuelling mortgage growth. In related news, local realtors Address Real Estate said domestic residential prices rose 10% in the first half of 2007. The number of the first-half property transactions is up 8% year on year. Burgas posted the biggest first-half home prices gain among the bigger metropolitan markets with 16.5%. A significant price increase was also recorded in Blagoevgrad - up to 525 euro/sq m, taking that market ever closer to Plovdiv where homes sell at 534 euro./sq m. Varna, on the Black Sea, had the most expensive residential market in the first half. According to Address, home prices should add 15% over the 2007 full-year period.