07.09.2010 The Property Market Is Similar to That in 2009

Imam Imot Magazine, September 2010

Imam Imot magazine published an article about the Bulgarian property market in the summer. According to some of the property experts the market is slightly more dynamic compared to previous months. The data of the Registry Agency show an increase in the number of sales in the second quarter of 2010 compared to the first – from about 28,000 to over 40,000. However, the volume of these deals is less compared to the same periods in 2009.

Here is how Polina Stoykova – the Chief Operations Manager of BULGARIAN PROPERTIES – answered the questions of Imam Imot:

1. How did the property market develop in the traditionally strongest summer months? Is there an increase in the number of deals compared to the first months of 2010 (both for sales and rents)?

After the very dynamic March and April and after the collapse in the number of deals in May the sales in June, July and August returned to levels close to the same period in 2009. In July and August there was a slight increase in deals of about 15% compared to the same period in 2009.

However, the sales in the last 3 months did not manage to reach their highest levels since the beginning of the crisis, which BULGARIAN PROPERTIES reached in March and April 2010. This means that the market remains at the same levels as in 2009 and there is no development or a signal for a lasting increase in dynamics.

Property sales in Sofia have increased compared to the summer of 2009 as average prices based on the concluded deals are about 850 EUR/sq.m.

In the last couple of months the market in the regional cities like Bourgas, Plovdiv, Veliko Tarnovo, etc. is becoming more active. These markets were stagnated since the beginning of the crisis and sales were made mainly in the capital Sofia. Apartment deals in these cities are concluded between 25,000 and 40,000 Euro, at an average price of about 500-600 EUR/sq.m.

Deals in the summer resorts usually increase in summer. This year there is a slight increase in the sales of about 15% along the southern and northern Black Sea coast. Buyers continue to be interested in apartments at low prices – between 20,000 and 40,000 Euro. We organize viewing trips on a daily basis but buyers are still indecisive and view many properties before choosing, i.e. deals are concluded after a lengthy research.

There is less interest in rural properties and a decrease of about 20% in the number of realized deals since July compare to the same period in 2009.

The trend of 5-10% of the deals to fall through after the payment of the deposit continues due to financial inability of the buyers to continue with the deal. This trend is true around the country and for different property types. At some moment buyers decide it is better for them to withdraw from the deal.

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