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Mon, May 20 2013
Bulgaria's home property market likely to hit rock bottom in 2011, estate agents say
Photo: Maria Subotinova
Housing property prices in Bulgaria are expected to hit rock bottom in 2011, recovering after that point, estate agencies said.
"Housing prices in 2011 will remain at historically low levels, but they are expected to stabilise in large regional cities and the overall decline to slow down countrywide," Teodora Dimitrova, head of the local unit of international firm ERA Real Estate, said.
According to Elta Consult, property prices are already near their optimal levels and further abrupt changes are unlikely.
"Even if the market has not reached absolute bottom, it is certainly close to it," said Polina Stoikova, chief operating officer of Bulgarian Properties.
In 2010, average housing property prices returned to the levels of three years ago, statistics show.
According to the National Statistical Institute (NSI), the average home price was 960 euro a sq m in the third quarter of 2010. In Q3 2007, it was 988 euro a sq m.
After Bulgaria joined the EU at the beginning of 2007, home prices increased, surging to 1418 euro a sq m in Q3 2008. But since then prices have declined.
Home prices have decreased by about 10 per cent in 2010, according to Bulgarian Properties figures.
The higher number of transactions was a positive sign, but it was too early to say whether the property market has started to recover from the crisis, Stoikova said.
According to Dimitrova, demand for homes will mainly hinge on employment, wages and access to loans.
Source: Dnevnik.bg
"Housing prices in 2011 will remain at historically low levels, but they are expected to stabilise in large regional cities and the overall decline to slow down countrywide," Teodora Dimitrova, head of the local unit of international firm ERA Real Estate, said.
According to Elta Consult, property prices are already near their optimal levels and further abrupt changes are unlikely.
"Even if the market has not reached absolute bottom, it is certainly close to it," said Polina Stoikova, chief operating officer of Bulgarian Properties.
In 2010, average housing property prices returned to the levels of three years ago, statistics show.
According to the National Statistical Institute (NSI), the average home price was 960 euro a sq m in the third quarter of 2010. In Q3 2007, it was 988 euro a sq m.
After Bulgaria joined the EU at the beginning of 2007, home prices increased, surging to 1418 euro a sq m in Q3 2008. But since then prices have declined.
Home prices have decreased by about 10 per cent in 2010, according to Bulgarian Properties figures.
The higher number of transactions was a positive sign, but it was too early to say whether the property market has started to recover from the crisis, Stoikova said.
According to Dimitrova, demand for homes will mainly hinge on employment, wages and access to loans.
Source: Dnevnik.bg
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Sofia's vacant office space at 25% in 2010 - MBL
The year 2010 ended with 265 500 sq m of new office completed, bringing the total office area in Sofia to 1.378 million sq m. The stock delivered to the market led to an increase in unoccupied space, which accounted for 24.3 per cent of the total inventory, equalling 335 000 sq m.
Residential property construction in Bulgaria declines in Q3 2010
Most of the new buildings were in the Black Sea areas of Varna and Bourgas, with 112 new buildings with 831 flats and 95 buildings with 888 units, respectively.
Property: Lawyer’s letter
I do sympathise with all the Brits that have lost on their investments in Bulgaria, but here I would like to add that a lot of Bulgarians also have been hit by hefty losses.
Property deals in Plovdiv on the rise
Prices in the city have not changed since the summer of 2009, and banks are now offering mortgage loans at lower interest rates, which have proved to be very popular.
Property market recovery in Bulgaria fuels mortgage lending growth
The slight revival on Bulgaria's real estate market has provided for the recovery in mortgage lending, banks active mainly in the property loan segment told Dnevnik.
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Worst is over for Bulgaria's property market after three years of decline, reports by Yavlena and Bulgarian Properties real estate firms claim.
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Raiffeisen Real Estate: Prices of Sofia homes returned to 2007 levels
Average market prices of homes in Sofia fell by one per cent in the fourth quarter of 2011 compared to the same period of 2010, according to the Raiffeisen Real Estate Index, as quoted by Klasa daily.
Most property sales in Bulgaria were people wanting to escape their investment – report
Proportionately, the number of transactions in leva increased as people reacted to speculation that the euro would disappear.
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I don't know anybody in bulgaria who earns 2,000 leva a month legally. The average in our area is about 400 leva.
Rule of thumb: When an average salary cannot pay for an average home, then the prices will keep falling (supply/demand). The whole idea of speaking of "the lowest possible level has now been hit or is close to be hit" is pure nonsense. Time only will tell us when the lowest price was hit, not predictions for the future for pseudo experts! When you have in mind that most Bulgarians have lost their jobs lately or work with monthly pre-tax salaries below 2000 lv while the interest rates are above 10% p.a., then yes, the majority of homes are too [...]
Read the full comment expensive.
only the greedy ones my friend ;-)
TO many investors have been burned on properties in Bulgaria. Corruption and poor legal system in Bulgaria scare off everyone.
When Europeans recover from the "psychological crisis" which is the main cause of "financial crisis", the prices of bulgarian properties will start increasing. When this will happen? When they get bored in hearing everyday about "financial crisis".
"According to Elta Consult, property prices are already near their optimal levels"
Optimal in whose eye's? Again it's the real estate business writing a lot of BS hoping this year people will start buying what they just can't sell. Prices all over BG are way too high and will drop even further till they are at a realistic level. Then maybe people will start buying again.
Cheers Tom for the cheery outlook and a Happy New Year to you too. I suspect that the prices will increase before the Minnesota Vikings ever win a Super Bowl though....PS where is Jerry, lets have his view?
After coming U.S. financial collapse, when the Chinese stop buying all those dollars the U.S. keeps printing, Bulgarian real estate prices will go into a tail spin. By 2018, many Bulgarians in the cities will be forced to go back to the villages to farm even.
Sincerely,
Tom David
Minneapolis