Bulgarian real estate market has entered a new stage in 2014

Author: Polina Stoykova MRICS, Managing Director & Head of Research

According to calculations of BULGARIAN PROPERTIES, based on the data from the National Statistics Institute (NSI), the property prices in Bulgaria registered their third real* annual increase of +1.6% in Q3 2014.

This data adds to the recent information we published about the property sales volume in Q3 and supports our thesis that the market is sustainably recovering.

This is also a confirmation for our forecast from the end of last year for an end in the downward trend on the property market and beginning of a new stage of its development. This new stage is already a fact.

During the third quarter of 2014, the growth rate of the property prices slightly slowed down, but in all three quarters of the year it keeps levels of more than +1.5% on average for the country and over +4% in the capital of Sofia.

Our expectations are for the year to end with a real growth in the property prices of around +2% for the country on average and +4% in Sofia.

The positive trends on the property market are most explicit in Sofia. The property prices in the capital made a fifth real* annual growth to the amount of +4%. Compared to the previous quarter, the property prices in the capital have increased with + 0.84%.

There is a growth in the prices in all major cities of the country. The average selling prices of the apartments in the big cities in Bulgaria in Q3 2014, according to NSI data, are as follows:

• Sofia – 760 Euro/sq.m.
• Plovdiv – 485 Euro/sq.m.
• Varna – 705 Euro/sq.m.
• Bourgas – 586 Euro/sq.m.
• Stara Zagora – 458 Euro/sq.m.
• Veliko Тarnovo – 373 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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