After Another Year of Price Growth the Rural Properties in Bulgaria Now Cost Less

What happened on the Bulgarian rural property market in 2008? Are the prices of rural property decreasing and is there a demand for such properties?

This is what the BULGARIAN PROPERTIES' data shows:

I. Average prices of rural properties in 2008* and price increase from 2007*:

• Villages around Sofia - 29,500 EUR +38%
  
• Stara Zagora Region - 13,460 EUR -3.8%
  
• Plovdiv Region - 17,300 EUR +24%
  
• Varna Region - 31,300 EUR -43%
  
• Bourgas Region - 28,800 EUR -7%
  
• Vidin Region - 12,500 EUR +19%
  
• Veliko Tarnovo - 14,200 EUR 0%
  
• Yambol Region - 16,300 EUR +20%
  
• Kardjali Region - 27,100 EUR +70%
  
• Montana Region - 7,850 EUR +26%
  

* The average prices for 2007 and 2008 are based on real property deals with clients of BULGARIAN PROPERTIES. The average prices serve as market indicators for measuring the market trends. There are cheaper and more expensive rural properties in every region.

In short, statistics shows the following:
Average price of concluded deals with rural property for 2008: 30 800 EUR
Increase compared to 2007: +24%
Decrease in the number of concluded rural property deals in 2008 compared to 2007: -43.5%

In 2008 like in the other real estate market segments there was a trend the price of the concluded rural property deals to increase year-on-year which was due to the buyers’ preference to properties of better quality, finished and furnished and ready to live in. In 2008 a lot of the deals were with renovated resale houses.

II. Average prices of rural properties through the years:
Average prices and price increase* from the previous year:

• 2005 – 15 450 EUR +37%
  
• 2006 – 18 510 EUR +20%
  
• 2007 – 24 800 EUR +34%
  
• 2008 – 30 800 EUR +24%
  

* The average prices are based on actual concluded deals with clients of BULGARIAN PROPERTIES.

It is apparent that in the last few years rural properties are quite profitable and their prices increase, as this trend is similar to that in the other property market segments. Even though in most cases the purpose for buying rural property is not for investment, these properties proved to also be a profitable asset.

III. For the first 2 months of 2009 the average prices* are:

• Villages around Sofia - 16,230 EUR
  
• Varna Region - 38,200 EUR
  
• Bourgas Region - 27,000 EUR
  
• Veliko Tarnovo - 12,600 EUR
  
• Yambol Region - 9,000 EUR
  
• Montana Region - 4,500 EUR
  

* The average prices for 2009 are based on actual concluded deals with clients of BULGARIAN PROPERTIES.

In short, statistics shows the following:
Average price of concluded deals with rural property for 2009: 19,130 EUR
Decrease in prices compared to average prices in 2008: –40%
Decrease in the number of concluded rural property deals in 2009 compared to the same period in 2008: –46%

IV. Trends on the rural property market since the beginning of 2009:

There is a clear trend of decrease in the average prices of the concluded deals – from 30,800 EUR in 2008 to 19,130 EUR in the first months of 2009 – this makes an almost 40% decrease, reaching levels similar to those in 2006.

The real estate price decrease trend we are witnessing is not bypassing the rural property segment as this was the segment in which the price decrease was felt first. We can say that it is exactly this reduction in prices that will make the buyers loosen their purse-strings as there is definitely interest in the segment.

At present there are a lot of cheap offers of rural properties which make them very attractive, even if they need some renovation work done. When a lucrative rural property offer appears on the market buyers react immediately and the property does not remain on the market for long.

Those interested in buying a rural property in Bulgaria are mainly interested in the areas around the capital Sofia, Plovdiv, Stara Zagora and the other big cities in the country, as well as in the regions close to the seaside (Varna and Bourgas) and in the mountain areas (Veliko Tarnovo, etc.). Foreign buyers are also quite interested in rural properties around the towns of Vidin, Elhovo and Montana. The interest towards rural properties is lasting and buyers looking for a good offer are sure to find it.

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© Bulgarian Properties Ltd. 2009.