08.08.2014 Property prices increased by 2% in Q2 - analysis based on National Statistics data

Polina Stoykova MRICS, Managing Director & Head of Research

The property market in Bulgaria is more convincingly coming out of the crisis. According to calculations of BULGARIAN PROPERTIES, based on the data from the National Statistics Institute (NSI), the property prices in Bulgaria registered their second real* annual increase of +2% in Q2 2014.

The second quarter was more positive for the real estate market in the country. There was even a small acceleration of the pace of price growth compared to Q1, when we reported first real* annual increase of +1.79% and announced the end to the real estate price decrease.

This data is fully in line with our forecast at the end of last year about the end of the downward trend and the beginning of a new stage of the market development.

The positive trend on the property market in Bulgaria is most explicit in the biggest cities in the country - Sofia and Plovdiv. In both cities the house prices registered their fourth consecutive real* annual increase of +4.38% in Sofia and +5.37% in Plovdiv. This means that the house prices in Sofia and Plovdiv have been rising for a year already. Compared to the previous quarter the property prices in the capital increased by +1.34%, and in Plovdiv - by +1.96%.

The average price of sold apartments in the regional cities in Bulgaria in Q2 2014 was 444 EUR/sq.m (compared to 443 EUR/sq.m in Q1 2014).

There is a growth in prices in all major cities of the country. The average prices at which apartments in the big cities in Bulgaria were sold in Q2 2014, according to NSI data, are as follows:

• Sofia – 753Euro/sq.m.
• Plovdiv – 489 Euro/sq.m.
• Varna – 699 Euro/sq.m.
• Bourgas – 578 Euro/sq.m.
• Stara Zagora – 454 Euro/sq.m.
• Veliko Тarnovo – 372 Euro/sq.m.

* real change - Real change is estimated after inflation deduction, calculated with the Harmonized Index of Consumer Prices (HICP). The deduction of inflation provides a more accurate estimation of the real price changes, so when using the NSI data we always make the necessary calculations to obtain a more precise market picture.

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