Over 20% increase in property deals in 2011

The deals with agricultural land boosted the property market in 2011, commented Polina Stoykova – Chief Operations Manager of BULGARIAN PROPERTIES, for the Capital program of Radio Dobrudzha. According to her it is the deals with agricultural land that are at the base of the reported growth last year. The increase is about 22% compared to 2010, Ms Stoykova noted. However, she explained that this market segment attracts mainly bigger investors like tenant farmers or funds.

At the same time there is a drop in apartment prices, as according to the data of the National Statistical Institute (NSI) the average drop is 6%. The most expensive are still apartments in Sofia and Varna – an average of 750 EUR/sq.m. At present the main buyers are Bulgarian, while Russians are interested in apartments along the Black Sea coast. In the smaller towns the demand is low. The average price in smaller settlements is about 250 EUR/sq.m. as deals are mainly concluded for properties up to 25,000 Euro. Dobrich remains in Varna’s shadow. There is no big demand for residential properties there. That is why property prices in Dobrich dropped by 10%, Polina Stoykova added. According to her there is a slight increase in the interest in rural properties.

There is no interest in buying office or commercial areas as it is much more profitable to rent them, she explained. According to her although the mortgage loan is one of the main drivers of the real estate market, in the last few years people are reluctant to take out a loan due to insecurity.

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