The Chief Operations Manager of BULGARIAN PROPERTIES in an Interwiew for RE:TV on 6th November

The Chief Operations Manager of BULGARIAN PROPERTIES Polina Stoykova gave a live interview for the morning block of RE:TV television in which she commented the current state of the real estate market and the fall of property prices in 2009.

Some of the main conclusions which Ms. Stoykova made during the interview are as follows:

• There is decrease in both the offered prices and the prices of actual concluded deals as the deals are concluded at lower prices than offered.
• In 2009 it takes a few months for most buyers to choose a property, prices are negotiated and they try to achieve the best possible price. This is also a market mechanism through which the supply and the demand meet and the market regulates itself.
• An average decrease of 40% in property prices is already a fact as this percent is even higher for ski apartments and rural properties. In Sofia this decrease is not that big as demand there is higher. It is mainly apartments priced between 600 and 900 Euro/sq.m. that buyers look for. Property prices were expected to fall drastically but this happened gradually. If we look back to the beginning of 2009 the deals in Sofia during the first quarter were concluded at 1,050 Euro/sq.m., in the second quarter – at 1,020 Euro/sq.m., in the third quarter – at 950 Euro/sq.m. and in October the average price of concluded deals is already 800 Euro/sq.m.
• The purchase of off-plan property is risky at the moment, but if the developer has a good reputations, if their financial state is well researched beforehand and if a good contract is drawn up then the risk for the buyer will decrease considerably.
• Regarding the forecasts for coming out of the recession Polina Stoykova commented that the real estate sector will follow the general economic situation in the country. If it starts to improve then the real estate sector will feel that but it is hard to say whether that will happen at the end of 2010 or after that. What can be said is that we could talk of increase in property prices in two years.

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