Number of Properties with Decreased Prices Increase Threefold in Half a Year

According to the data of BULGARIAN PROPERTIES a total of 18% of the active offers on the company’s site are with discounted prices. For comparison, an analysis from June 2009 shows the properties in this section made up only 5% of the company’s active offers. 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 conclusion to be made from this trend is that the market is gradually regulating itself in search of the point of balance between the offer prices and the actual market prices.

In our weekly newsletter with newly published properties we also send our clients those offers whose prices have been discounted during the week. Since the beginning of the year the number of the discounted offers once again equals and at times even exceeds the number of the newly-published offers on a weekly basis, as in the last 2 months of 2009 the rate of decrease in offer prices slowed down and the new offers were twice as much as those with discounted prices.

The average decrease of the offer prices of properties around the country published on the BULGARIAN PROPERTIES site is 20%, as the discounts vary between 5 and 60%.

The reported decrease in the prices of 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.

According to the company’s data the average decrease in offer prices since the beginning of 2009 until now is as follows:

• 20% - average for the country
• 17% - Sofia
• 14% - Varna
• 25% - Bansko
• 19% - Sunny Beach
• 15% - Bourgas
• 15% - Plovdiv
• 22% - rural properties

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 in 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. Average prices of Varna properties remain higher than those in Sofia on the basis of actual concluded deals.

The decrease in the offer prices of Bansko apartments is 25%, which is the same as that from June 2009. This means that since last summer offer prices in Bansko have not fallen further. However, in 2009 the number of concluded deals in Bansko is higher compared to those in 2008, the conclusion being that the market attracts more buyers. The average decrease in the prices on the basis of actual concluded deals is 41% (for 2009 compared to 2008).

The average decrease in the offers prices in the resort of Sunny Beach is 19%. In June 2009 it was 13%. According to data from BULGARIAN PROPERTIES’ annual market analysis the decrease in prices based on actual concluded deals is 40% (for 2009 compared to 2008).

The average decrease in the offer prices of apartments in Plovdiv and Bourgas is the same – 15%. The market in these cities is lethargic and people still think prices have not gone down enough which explains the smaller number of deals there.

The decrease in the average offer prices of rural properties is 22%. In June 2009 it was 15.35% and the decrease in the prices of actual concluded deals in 2009 compared to 2008 is 53%.

According to BULGARIAN PROPERTIES the trend is for the correction in the offer prices to continue in the next few months until the market finds its price balance. That is when the market will reach the bottom and will maintain stable price levels.

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