24.10.2013 Housing prices in Bulgaria with a consecutive real quarterly growth

Polina Stoykova MRICS, Head of Operations and Research

According to calculations of BULGARIAN PROPERTIES based on the data from the National Statistics Institute (NSI) about the prices of the apartments in the regional cities in Bulgaria in Q3 2013, housing prices in Bulgaria have achieved a successive real* quarterly growth (after deduction of inflation, calculated with the Harmonized Index of Consumer Prices, HICP).

At the same time, the property prices in Sofia have registered the first real annual growth of +0.5%, and in Plovdiv the real annual increase is +0.24%.

The real change in average property prices for the country as a whole in Q3 is +0.34% compared to the previous quarter and -1.18% year-on-year (compared to the same quarter in 2012).

*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.

Nominally (without inflation deduction), property prices in Bulgaria remained almost unchanged compared to the previous quarter - a nominal decline of -0.15% on average for the country. On a yearly basis (compared to the third quarter of 2012) the prices in Bulgaria have decreased by -1.84%.

The average price of an apartment in the regional cities in Bulgaria in Q3 was 442.29 EUR/sq.m. (compared to 442.94 EUR/sq.m. in Q2 2013).

The prices at which apartments in the big cities were sold during the period June-September 2013, according to NSI data, are as follows:

• Sofia – 738 Euro/sq.m.
• Plovdiv – 476 Euro/sq.m.
• Varna – 706 Euro/sq.m.
• Bourgas – 569 Euro/sq.m.
• Stara Zagora – 444 Euro/sq.m.
• Rousse – 452 Euro/sq.m.
• Veliko Тarnovo – 365 Euro/sq.m.

The prices of apartments in the capital of Sofia in 3Q 2013 have increased nominally by +0.67% compared to the previous quarter, and on an annual base the drop is close to 0 and is -0.17%. After inflation deduction the prices of apartments in Sofia have increased by +1.17% compared to the previous quarter, and compared to the same period of last year the first growth of +0.5% was registered.

The accumulated nominal price drop of apartment prices in the regional cities in the last few years since the beginning of the crisis is -39.01%, while in Sofia the decrease is -41.5%. The accumulated real fall in prices (after inflation deduction) since the beginning of the crisis is -44.5% on average for the country and -46.77% in Sofia.

The detailed data for of the changes in apartment prices in the big cities around the country in 3Q 2013 is as follows:

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

• Sofia – nominal growth (+0.67%) and real growth (+1.17%)
• Plovdiv – nominal growth (+0.92%) and real growth (+1.41%)
• Varna – nominal growth (-1.04%) and real growth (-0.55%)
• Bourgas – nominal growth (-0.45%) and real growth (+0.04%)
• Stara Zagora – nominal growth (-0.64%) and real growth (-0.16%)
• Rousse – nominal growth (+0.63%) and real growth (+1.12%)
• Veliko Tarnovo – nominal growth (+0.10%) and real growth (+0.59%)

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

• Sofia – nominal growth (-0.17%) and real growth (+0.5%)
• Plovdiv – nominal growth (-0.43%) and real growth (+0.24%)
• Varna – nominal growth (-3.12%) and real growth (-2.47%)
• Bourgas – nominal growth (-1.98%) and real growth (-1.32%)
• Stara Zagora – nominal growth (-3.42%) and real growth (-2.77%)
• Rousse – nominal growth (+0.81%) and real growth (+1.48%)
• Veliko Tarnovo – nominal growth (-2.25%) and real growth (-1.59%)

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Copyright: 2013 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. and the Author cannot be held responsible for loss or damage as a result of decisions made based on the information presented in this article.
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