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Thu, May 23 2013

Bulgaria's housing property has lost a third of real value since 2008

Wed, Oct 05 2011 09:49 CET

byDnevnik.bg

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Bulgaria's housing property has lost a third of real value since 2008

Photo: Krassimir Yuskesseliev

Residential property in Bulgaria has lost nearly one third of its actual value since 2008, according to a report by real estate agency Yavlena.

Compared to 2010, housing prices have fallen by 8.5 per cent and by 20.92 per cent against 2008.

The report, based on official statistics, takes into account inflation and also assumes that an average housing unit has an average floorspace of 75 sq m.

According to Yavlena's manager Strakhil Ivanov, buyers now tend to buy housing in the lower price segment, of between 25 000 euro and 50 000 euro, against an average price of 78 302 euro for Sofia in 2008.

The number of residential property deals in the first half of 2011 was 102 276, up from 73 867 in the corresponding period of the previous year. Despite the increase, however, the collapse of the property market in 2008 is yet to be compensated, Ivanov said.

The executive director of real estate agency Address George Pavlov said, citing a study of Industry Watch, that 80 per cent of the wealth of Bulgarians was held in real estate.

Meanwhile, the number of issued building permits has plummeted about for times in the past four years.

"This is bad for construction, but means that the market is balancing," he said.

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