Record Months on the Bulgarian Property Market since the Beginning of the Crisis

profit.bg, 9.04.2010

The first quarter of 2010 was relatively successful for the real estate market in Bulgaria as the average activity on the market was about 40% higher compared to the same period in 2009 – the most difficult period on the property market in Bulgaria. Property sales in January and February 2010 remained the same as those in the second half of 2009, shows an analysis of company BULGARIAN PROPERTIES for the first quarter of 2010.

March brought higher activity on the market and the number of deals reached a record high since the beginning of the crisis and a growth of 50% compared to the average monthly levels in the last 10 months. The more dynamic market in March was mainly connected to properties in regions around the country some of which had registered almost no deals in the last few months. The activity on the market of city properties in Sofia and Varna remains unchanged compared to the last six months and property prices based on actual concluded deals remain stable.

The concluded deals are still mainly with luxurious properties or with very cheap properties, as the main requirement of the buyers is the bargain price. This trend started in 2009 and still continues.

In the city property segment and mostly in Sofia we witness a calmer market and an overcoming of the initial shock from the crisis. It’s a fact that the decrease in property prices in Sofia is much smaller compared to that in most parts of Bulgaria – a 23% decrease in 2009 compared to 2008 for Sofia on the background of an average price decrease of 36% for the country according to BULGARIAN PROPERTIES’ data from actual concluded deals.

In the first quarter of 2010 property prices in Sofia and Varna based on actual concluded deals remain unchanged compared to the last quarter of 2009.

1.1. Sales of residential properties in Sofia

Average price of sold apartments in the first quarter of 2010 – 1,040 EUR/sq.m.

In January the apartments in Sofia were sold at an average price of 980 EUR/sq.m. which is similar to that of the last quarter of 2009. In February the average price was 1,220 EUR/sq.m. (mainly luxury properties were bought) and in March the average price of sold properties dropped to 940 EUR/sq.m.

Decrease in the offer prices of properties

The decrease in the asking prices of properties became more obvious in the beginning of this year as there were most offers with decreased prices in the period 20.01.2010 – 10.02.2010.

At present the number of discounted offers makes up about 60% of the of the new offers published every week by the company. This is what continues to provoke the interest of the buyers who follow the market and notice every bargain offer, BULGARIAN PROPERTIES say.

The average decrease in the asking prices of properties around the country is 25% since the beginning of the crisis, as in the last two months offer prices have decreased by 5%.

Since the beginning of the crisis the decrease of the asking prices of Sofia apartments is 21.4% as in the beginning of February it was 17%. The decrease in the prices of apartments in Sofia based on actual concluded deals is 23% for 2009 compared to 2008, i.e. the disparity in the offer prices and the prices at which the deals are concluded is already minimal.

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DISTRESSED PROPERTIES


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