New reports indicate a drop in Bulgarian real estate prices in 2011, with some regions seeing as much as a 25% decline in values. Brokers and sales managers say the market is being driven by demand for properties priced at the low end of the market and the effect is a drawdown in values across the board. Although local industry analysts suspect the market has hit bottom, there is still no expectation for recover in 2012. For more on this continue reading the following article from Property Wire.
The extent of the decline in residential property prices in Bulgaria are shown in the latest figures which reveal they are 5 to 10% lower in 2011 than in 2010.
Initial predictions for 2012 are that prices are largely expected to be unchanged as real estate markets around the country remain at a standstill.
Average prices in the capital city Sofia were around €920 per square meter, down from €1,100 in 2010, according to brokers.
Prices in Bourgas on the Black Sea fell to an average €860 per square meter and in Plovdiv, Bulgaria’s second city, they were €770 per square meter. Bansko, which has been v very popular with overseas buyers, saw prices fall by 25%.
‘At the moment, sales have fallen hugely. It is almost tragic,’ one hotel manager Dimitar Iliev told television station bTV. He added that the British have deserted the ski resort.
Vanya Voina, a sales manager, said that she believes prices at the moment were almost at bottom.
Brokers said that prices in major cities were relatively stable, but because of the decline in demand, prices had fallen. ‘In some places the decrease is 8 to 10% while in other areas less so,’ said Dilyan Dimitrov from Varna.
The type of properties most like to sell are present are two and three bedroom apartments, with price the key factor.
According to Polina Stoikova, operations director of a property sales company, the market is characterised by demand for properties in the low price range. She said that this meant apartments in major cities in the €50,000 euro price range were selling.
Brokers expected that the number of transactions would remain at similar levels as has been seen over the last two years.
This article was republished with permission from Property Wire.