Discounts from Asking Prices of Properties Decrease

Pari Daily, vol.105, 08.06.10

The discounts from the asking prices of properties are getting smaller, showed a check of Pari Daily. “Price discounts are now about 10% as they used to be double,” says Nikola Stoyanov, Managing Director of luxury property company LUXIMOTI.

The explanation
According to him prices have fallen quite a lot and have hit the bottom. “I believe that from now on there will be no more considerable property price decreases”, he explained. There are 10 properties with discounted prices in this week’s latest ads newsletter of the luxury property company. Six of the offers are for sale and the other four – for rent. The discounts in the asking prices vary between 1.16% and 20%.

Sensitivity
“People started reacting to the good and bad news very fast. In April, when there was good news about the global economy we had a peak in sales since the beginning of the crisis. In May, when bad news from Hungary started coming people became anxious and decided to postpone their property deals”, commented Mr. Stoyanov. He explained that this is the first time when buyers stop the process in the final stage of the deal. “When there is news about the economy starting to recover, they start buying because they think property prices will go up,” added the LUXIMOTI Managing Director.

Bulgaria is an attractive property destination not only for Brits and Russians. BULGARIAN PROPERTIES data show that there are buyers also from Ireland, Australia, the USA, and even from New Zealand.

Elite properties
Unlike in the mass properties sector the crisis didn’t nip the demand of luxury properties. It decreased but remains stable, experts say.

“There is a specific group of people who value exactly these properties and do not postpone the deal even at times like these”, said Nikola Stoyanov. He also added that there is constant demand for elite properties. The buyers are usually Bulgarians and Russians. According to him there will come a time when luxurious apartments, houses, villas, etc. will establish themselves as a separate investment product and will not be influenced by the trends in the other property sectors.

View our luxury property offers in Bulgaria


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