Property Prices Hit Bottom

Politika Daily, vol.336, 01.10.10

After the dynamic correction of properties’ asking prices in the second half of 2009 the discounts in the asking prices in 2010 are minimal, shows the analysis of real estate company BULGARIAN PROPERTIES.

Most of the new offers for sale come to the market at their actual market prices. This shows that there is a complete cycle of price decrease which started at the end of 2008 and continued for about a year and a half, the company comments. According to the data the share of the discounted offers in the country at the end of September 2010 is 24% of all active offers on the sites of BULGARIAN PROPERTIES and LUXIMOTI.

For comparison – in the beginning of 2010 this percent was 18, i.e. there is an increase of only about 6% in the number of discounted offers for the first 9 months of 2010. It is mainly prices of properties which were overpriced in view of the current market conditions that are discounted.

The average increase of the asking prices in the country is 22%, as in the beginning of 2010 this percent was 20. This means that there is a minimal increase in the average decrease of property prices of just 2%. The average percent of the decrease in the asking prices in Sofia at the moment is 22%, as in the beginning of 2010 it was 17%, i.e. there is a 5% decrease in the asking prices of Sofia properties in 2010.

For Varna the average decrease in property prices is 19% which means a 5% increase in 2010. From the data from the two sites it can be concluded that the slowdown of the pace of the discounts in the asking prices in 2010 is very clear. The market found a balance and at present everyone is waiting to see whether there will be signs of an increase in the number of the deals which will be a signal for recovery. There are also quite a few offers which were withdrawn from the market – they were tested at a specific price and after no deals were made they pulled out for now.

In total for the whole country from 2009 till now the average decrease in the asking prices of apartments is 18%, as the greatest decrease in the offer prices is to be found in the one-bed apartments and the maisonettes (–20%) and the smallest decrease is for the smallest and biggest apartments. The decrease in the offer prices of houses is 22%, of land – 26% as for agricultural land the decrease is 30%, of offices – 28% and of shops – 30%. The smallest decrease is registered for the apartments which were sought by buyers even in a time of crisis.

View all our DISCOUNTED PROPERTIES


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