Apartment prices in regional cities with minimal change in 4Q 2011

The latest data of the Bulgarian National Statistical Institute (NSI) for prices of apartments in the regional cities in the country in 4Q 2011 shows that prices have remained similar to those in 3Q 2011. The average price decrease is 1.5%, as property prices in the towns of Montana (-8.27%) and Pernik (-6.91%) have dropped the most. What is typical for the second half of 2011 is the slowdown in the pace of decrease of apartment prices around the country to an average of 1-1.5% on a quarterly basis.

On an annual basis (compared to 4Q 2010) prices of apartments in the regional cities dropped by an average of 6.2% which is almost the same as the annual drop reported in 3Q 2011. The real decrease of prices of apartments after inflation (calculated with the Harmonized Index of Consumer Prices HICP) is 2% compared to the previous quarter and 8.5% year-on-year (compared to the same quarter in 2010).

According to the NSI data the average price of an apartment in the regional cities in Bulgaria in the last quarter of 2011 was 453 EUR/sq.m. and prices in the capital Sofia and Varna are similar. These are the prices at which apartments in the biggest cities were sold in the last few months of 2011:

• Sofia – 743 EUR/sq.m
• Varna – 743 EUR/sq.m
• Plovdiv – 485 EUR/sq.m.
• Bourgas – 596 EUR/sq.m
• Stara Zagora – 455 EUR/sq.m
• Rousse – 430 EUR/sq.m
• Veliko Tarnovo – 365 EUR/sq.m

For Sofia the nominal decrease in prices in 4Q 2011 is -0.22% compared to the previous quarter and -7.2% year-on-year. After inflation (through HICP) prices of apartments in Sofia decreased by 0.65% compared to the previous quarter and by 9.5% compared to the same period last year.

The accumulated nominal price decrease of apartments in the regional cities in the last 3 years since the beginning of the crisis is 37.5%, as the accumulated price decrease for Sofia is 41%. The accumulated real decrease in prices (after inflation) since the beginning of the crisis is 42% on average for the country and 45.5% for Sofia.

Here is detailed data for the changes in apartment prices in the big cities around the country in 4Q 2011:

Nominal and real change of prices compared to the previous quarter:

• Sofia – nominal growth (-0.22%) and real growth (-0.65%)
• Varna – nominal growth (-2.6%) and real growth (-3.02%)
• Plovdiv – nominal growth (-2.9%) and real growth (-3.3%)
• Bourgas – nominal growth (-1.53%) and real growth (-1.96%)
• Stara Zagora – nominal growth (+3.4%) and real growth (+2.95%)
• Rousse – nominal growth (-2.91%) and real growth (-3.33%)
• Veliko Tarnovo – nominal growth (+0.94%) and real growth (+0.5%)

Nominal and real change of prices compared to the same quarter of the previous year:

• Sofia – nominal growth (-7.2%) and real growth (-9.5%)
• Varna – nominal growth (-5%) and real growth (-7.35%)
• Plovdiv – nominal growth (-8.34%) and real growth (-10.62%)
• Bourgas – nominal growth (+2.08%) and real growth (-0.45%)
• Stara Zagora – nominal growth (-1.5%) and real growth (-3.94%)
• Rousse – nominal growth (-1.23%) and real growth (-3.68%)
• Veliko Tarnovo – nominal growth (-10.96%) and real growth (-13.17%)

According to NSI annual data the biggest price drops in 2011are registered in Dobrich (-10.28%), Gabrovo (-17.27%), Pernik (-12.58%), Shoumen (-15.03%), Veliko Tarnovo (-10.79%) and Vidin (-11.8%).

---

Copyright: 2012 Bulgarian Properties Ltd. All rights reserved. For further information or advice please contact us on tel.: +359 2 9 11 50 or e-mail: info@bulgarianproperties.com. The use of this article by third parties is allowed only with proper quotations of the source www.BulgarianProperties.com and the Author of the article. The data in this material has been collected by the Author and Bulgarian Properties Ltd. and is presented for information purposes only. We have made every effort to ensure the accuracy of the data. However, Bulgarian Properties Ltd. cannot be held responsible for loss or damage as a result of decisions made based on the information presented in this article.
© Bulgarian Properties Ltd. 2012.