Property Prices Fell by 20% in 14 Months

Imam Imot Magazine, March 2010

The average decrease of property prices on the site of BULGARIAN PROPERTIES is 20% as the price decrease varies between 5 and 60%.

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. The additional discounts from the offer prices from June 2009 up to now vary between 4 and 7%.

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. This means that for a little more than half a year we have a threefold 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.

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, BULGARIAN PROPERTIES summarized. The average prices of Varna properties remain higher compared to those in Sofia, as this conclusion is based on actual concluded deals.

According to the Director of the BULGARIAN PROPERTIES Office in Varna Evgeni Zlatev there is an over 30% decrease in rental prices in the city, even in the traditionally expensive quarters. Prices there do not exceed 400-500 Euro as in the beginning of 2009 they were as high as 1,000 Euro per month. The average price at which a one-bedroom apartment in a new building is currently rented is about 350 Euro.

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DISCOUNTED PROPERTIES

Has the Bulgarian property market reached the bottom?


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