Offer Prices of Bulgarian Properties Falling

Pari Daily, vol. 27, 10.02.10

Property owners are decreasing the prices of their properties so they can sell them. After New Year the number of our offers with discounted prices is even higher than that of our new offers, said for Pari Daily Polina Stoykova, the Chief Operations Manager of BULGARIAN PROPERTIES.

A total of 18% of the active offers on the BULGARIAN PROPERTIES site are with discounted prices. For comparison in June 2009 the properties in this section made up only 5% of the active offers in our company, Ms Stoykova added. This means that for a little more than half a year we have an almost fourfold growth of the number of discounted properties. A large part of the new offers should also be added to this section as they are published at a lower price as the market demands it, said Polina Stoykova. The average decrease of the prices around the country is 20%. For Sofia it is 17%, for Varna – 14%, for Bansko – 25%, for Sunny Beach – 19%, for Bourgas and Plovdiv – 15% and for rural properties it is 22%.

Differences in prices

The reported decrease in the prices of the actual concluded deals of BULGARIAN PROPERTIES for 2009 compared to 2008 is 36%, i.e. there is still a discrepancy of about 15% between the offer prices and the prices at which the deals are actually concluded, sales agents say. The additional discounts from the offer prices from June 2009 up to now vary between 4 and 7%. The decrease in the offer prices of Sofia apartments is 17% while in June 2009 this decrease was 13%. The decrease in the prices of the apartments in the capital on the basis of actual concluded deals is 23% (in 2009 compared to 2008), i.e. the difference between the prices at which deals are concluded and the offer prices is already about 5%. The prices of the apartments sold in Sofia in January remain similar to those of the last quarter of 2009 – about 980 EUR/sq.m.

The decrease in the offer prices of the apartments in Varna is 14%. In June 2009 the decrease was about 10%. The average decrease in the prices of apartments sold in Varna is 22.5% in 2009 compared to 2008. As it can be seen the decrease of offer prices in Varna is smaller than that in Sofia and this defines the lower interest on the part of potential buyers, which started to return only at the end of 2009, Ms Stoykova summarized.

Hot offers

In the newly-published discounted properties on the company’s site the decrease is between 4 and 66.91%. The greatest discount is of a house near the town of Pleven with an area of 60 sq.m. and a garden of 1,200 sq.m. built in 1959. Its price has been decreased from 13,600 EUR to 4,500 EUR. The price of a plot of land of 514 sq.m. with a house on it of 45 sq.m. near the Evksinograd palace (Varna) has been decreased by only 4%. Its new price is 120,000 EUR.

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DISCOUNTED PROPERTIES

Has the Bulgarian property market reached the bottom?


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