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Bulgarian property prices ‘have hit bottom’ brokers say – report

Author: The Sofia Echo staff Date: Mon, Jan 09 2012 4 Comments, 9706 Views
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Property prices in Bulgaria were five to 10 per cent lower in 2011 than in 2010, while initial estimates for this year are that they will remain largely unchanged, at "crisis levels", according to brokers quoted in a report by television station bTV.
 
In 2010, a bid price a sq m in capital city Sofia was close to 1100 euro but in 2011 this decreased to 920 euro, according to the bTV report.
 
The decline in Varna, Bulgaria’s main Black Sea city, was similar, the report said.
 
In late 2011, the price of property in Bourgas on the Black Sea decreased to an average 860 euro a square metre, and in Plovdiv, Bulgaria’s second city, to close to 770 euro a sq m.
 
The most serious decline, according to the bTV report, was in Bansko, at 25 per cent.
 
Brokers described the property market in Bansko as "at a complete standstill," the report said.
 
"At the moment, sales have fallen hugely – it’s almost tragic," bTV quoted hotel manager Dimitar Iliev as saying. "Especially in the past few months, you could feel the drop, almost 30 per cent from last year and the year before. To tell you the truth, the British are almost gone," Iliev said.
 
The report quoted Vanya Voina, a sales manager, as saying that prices at the moment were at "almost bottom". She said that for this reason, advertising had been stepped up.
 
Everyone in the property business in the Bulgarian winter resort was "waiting for better times, with sales at higher prices," bTV said.
 
Brokers said that prices in major cities were relatively stable, but because of the decline in demand, prices had fallen.
 
Varna was no exception, the report said, quoting broker Dilyan Dimitrov. "In some places the decrease is eight to 10 per cent while in other areas prices are stable," he said.
 
The report said that the properties most in demand were two- and three-bedroom apartments, with price the key factor.
 
According to Polina Stoikova, operations director of a property sales company, the market was 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, a difference from 2010, when demand was for high-end properties.
 
According to the bTV report, brokers refrained from specific forecasts for 2012, but said that initial estimates were that property prices would remain around current levels, possibly with a slight decline.
 
Brokers expected that the number of transactions would remain at the "crisis" levels that had been seen since 2010.
 
 

  • Most property sales in Bulgaria were people wanting to escape their investment – report
    • Profile preview
      d7 Rating: 8
      neutral
      #4 12, 51, Wed, Feb 29 2012

      Of course they say it hit bottom, they are desperate to sell. Over and over it's the ones that have something to sell writing these reports, hoping investors will fall for it. Getting the prices to a more real level might get things running again. Mark my words as i say they will drop another few %.

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    • Profile preview
      Milen Rating: 8
      neutral
      #3 16, 53, Tue, Feb 07 2012

      "Bulgarian property prices ‘have hit bottom’ brokers say – report" .....they wish. Agents keep saying that and hoping this will come true, but I sincerely doubt it. Get real and pick another job.

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    • Profile preview
      Bin Liner Rating: 8
      neutral
      #2 11, 35, Tue, Jan 10 2012

      The real problem has been that up to ten years ago there was little or no interest in purchasing real estate in Bulgaria. The valuation prices were just magicked out of thin air attempting to compete with other European destinations. In many cases the seller had no idea how much some of the estate agents were asking for the property who then pocketed the difference. We bought a traditional Rhodopi house close to Pamporovo 7 years ago that required massive renovation work for £5,200. We then spent a further £30,000 restoring it. It was advertised through an agency for 15,950 [...]

      Read the full comment Euro, the owners two sisters and a brother wanted 6,000 Euro. Apart from the Economic crisis many Brits are just sick to the back teeth of being ripped off by greedy agents. My opinion is the property will continue to fall until they are back to 2004 valuation. Then and only then will the interest recover.

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    • Profile previewanonymouseMon, Jan 09 2012

      This comment has been removed by the moderator because it contained

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