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Bulgaria's home property market likely to hit rock bottom in 2011, estate agents say

Author: Date: Tue, Dec 28 2010 8 Comments, 6809 Views
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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.


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    • Anonymous
      Rip Toff Enuff Rating:
      #8 23, 03, Mon, Jan 24 2011

      I don't know anybody in bulgaria who earns 2,000 leva a month legally. The average in our area is about 400 leva.

    • Anonymous
      JT, Sofia Rating:
      #7 21, 22, Tue, Jan 11 2011

      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.

    • Anonymous
      @ mIKAEL/sWEDEN Rating:
      #6 18, 12, Tue, Jan 11 2011

      only the greedy ones my friend ;-)

    • Anonymous
      mIKAEL/sWEDEN Rating:
      #5 04, 40, Tue, Jan 11 2011

      TO many investors have been burned on properties in Bulgaria. Corruption and poor legal system in Bulgaria scare off everyone.

    • Anonymous
      alpha Rating:
      #4 18, 05, Wed, Jan 05 2011

      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".

    • Anonymous
      sure Rating:
      #3 15, 02, Mon, Jan 03 2011

      "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.

    • Anonymous
      filko Rating:
      #2 15, 07, Wed, Dec 29 2010

      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?

    • Anonymous
      Tom David Rating:
      #1 23, 53, Tue, Dec 28 2010

      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.
      Tom David

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