House prices all across Bulgaria’s regional cities have slumped in the three months through March 2009 from the previous quarter, according to National Statistical Institute (NSI) figures.

Average prices fell 12.4 per cent on the quarter but the annual decrease was a lower 8.4 per cent as the uptrend reversed only in October.

The average housing price in the first quarter was 1190 leva a sq m. Last year it peaked at 1418 leva a sq m between July and September, making an average national decrease of 16 per cent from July to March.

Experts say residential prices will slip to their lowest in the third quarter of up to 30 per cent on an annual basis.

From January to March, prices plummeted the sharpest in Veliko Tarnovo (-25.1 per cent), Kyustendil (-21.5 per cent), Blagoevgrad (-20.5 per cent), Rousse (-18.8 per cent) and Vidin (-17.8 per cent).

There were decreases of less than five per cent in Shoumen, Dobrich, Razgrad, Montana and Gabrovo.

Varna overcame Sofia in terms of highest housing prices by a two leva margin. The cheapest flats are offered in Kyustendil for  600 leva a sq m and towns around the capital at 652 leva a sq m, which is more than three times lower than the costliest areas.

On an annual basis, a few regional cities managed to defy the downturn from January to March, with marginal gains registered in Bourgas, Plovdiv, Vratsa, Montana, Razgrad, Sliven and Smolyan. Prices in all of them peaked last summer and are now cooling off at a slower pace.

Source: Dnevnik.bg