The average value of the loans extended in Bulgaria went up by 44.33% year on year in the first half of 2008, CreditCenter data show.

The average size of the loans obtained in the period stood at 44,886 euros in the first half of the year, compared to 31,100 euros for the year-ago period, statistical data compiled by the credit institution show.

The increase may be put down mainly to the growth in real estate property prices. This correlation is outlined clearly in the analysis of the different cities.

Real estate property prices in Sofia grew by 50% in Sofia boosted by the migration of the people from smaller cities. The prices in Varna went up by just 10% in the period.

„The data looks very optimistic against the backdrop of the severe financial crisis”, Tihomir Toshev, executive director of CreditCenter, said. „Before we make any final conclusions, we should take into consideration a number of external facts such as the utilization of part of the loans extended in 2007 and the fact that there are still banks in Bulgaria that have not raised interest rates.”

The average borrower obtained a loan between 30 and 50,000 euros this year and has a monthly income of between 500 and 1,000 leva.

He/she works in the field of IT, communications or state administration and finances between 80 and 90% of the purchase of a residential property with a loan. The average period of the loans stood at over 25 years. Most loans were denominated in euro and the interest rates ranged between 6,4 and 7,25%.

This group of people has been behind the lending dynamics in the last few years, according to Tihomir Toshev. That is why it is crucial to know that 18% of these people are already deferring their deals, while 32% of them find the prices of real estate properties two high.

The share of these people will continue to grow in the summer months and the picture of the Bulgarian mortgage market will be different in the fall, CreditCenter forecasts. This should make banks and real estate developers offer promotional terms for the traditionally active months of October and November, which should stir the market and raise once again the volume and the size of the loans.