Properties in Sofia cheapest since 2006

For the first time since the last four years the data from the last months for the real estate market is predominantly positive. There is a destabilization of prices and the first timid attempts increases, which indicates for finding equilibrium and beginning a recovery from the crisis.

An increase with 30 % in sales of beach holiday apartments is registered, a trend outlined in July. There is also an increased foreign demand.

The average price of the sold apartments in Sofia in the third quarter in 2012 was around of 48,400 euros.

Strong growth of around 40% is reported in the volume of sales of houses, this makes them hit on the market in recent months.

There is increasing interest in winter resorts and expectations for a strong winter sales mainly in Bansko but also in Pamporovo and Borovets, where prices are already competitive.

The interest in affordable housing in the price range up to € 50 000 continues to dominate in Sofia, and this trend continues in the middle of last year and our expectations are that it will continue also in the next year.

These homes are quality apartments in good condition, offering a modern style of life at a good price.

In recent months, our data shows increasing interest in rural properties and holiday properties.

Bulgarian buyers are concerned about the crisis and uncertainty in their income. This concern is evident from the data for the new Bank loans - their volume in 2012 continues to shrink, even in the presence of good interest rates.

The average price of apartments sold in the third quarter of the year was € 710 per square meter, which is slightly down from the previous quarter (715 euros / square meter).

For the last nine months of 2012 the average price of sold apartments in Sofia is 720 euro per square meter and the average offer price is 895 euro per square meter. Both rates are the lowest since 2006, and the gap between asking prices and actual transaction prices continues to exist.

We can call 2012 "the year of the marine estates". This segment of the market has rebounded, led by the interests of Russian buyers to purchase their own holiday home in a warm and sunny place like Bulgaria.

The volume of apartments sold in the third quarter increased with about 30 % annually, the interest was focused mainly on the southern coast, in resorts like Sunny Beach, Pomorie, Ahtopol, Sozopol, Lozenets and etc.

Transactions in Sunny Beach are concluded at average price of € 490 per sq.m. (At € 475 per square meter in the second quarter 2012) - these are mainly apartments on the west side of the resort. Sales of apartments in a prestigious location close to the beach are going for between 750 and 850 euro per square meter. The lowest prices start from 250 euro per square meter for furnished apartments in or near Sunny Beach.

Winter resorts are not yet able to experience the excitement that exists in the sea resorts. With the beginning of the winter, buyer will turn to winter resorts now.

Bansko is definitely the leader in low prices - at the moment it is the cheapest holiday market in Bulgaria and throughout Europe. Prices start from 300 euro per sq. m. The cheapest apartment sold in the third quarter was fully furnished studio of 30 square meters for € 11,800.

The average price of the purchased apartments in Bansko in the third quarter was 400 euro per square meter. Transactions over 30,000 euro practically are not very common. The buyers are not only foreigners but also more Bulgarians who are fans of winter sports.

Pamporovo has emerged as a serious competitor to Bansko among the Russian buyers. Prices in the resorts are almost equal - the average price of apartments in Pamporovo for the third quarter was 430 euro per sq. m. In Borovets properties are traditionally more expensive, but they are now at very attractive prices - the average price of transactions in 2012 was about € 630 per sq.m.

The average price of farmhouses in the third quarter of 2012 was around € 22,000. The main news in this segment comes from the increase in the volume of transactions, which indicates increased interest among the buyers. Most numerous were summer houses for sale near Burgas and they are about one third of total rural houses sold during the past quarter.

These houses are mostly in very good condition for between 20,000 and 40,000 euro. Other areas that attract the interest of buyers are the regions of Plovdiv, Stara Zagora, Yambol and Elhovo where houses are much cheaper than those near the sea, where the quality and the prices are very good average about € 15,000.

Our expectations for the third quarter of an active beach resorts are fully justified, even to a certain extent our forecasts passed the dynamics in this segment. It seems that 2012 will end with market optimism and resorts in Bulgaria increased popularity among Russian buyers.

Unfortunately, not so optimistic are the things for urban properties that are much more dependent on domestic demand. They are highly dependent on economic recovery and fundamental factors such as income, unemployment, access to bank lending, which so far prevailed in a negative direction and is keeping the recovery of this market segment.

Our expectations this year for retention or minimal decrease in property prices were confirmed. We did not see dramatic changes in the market in 2012, while price decreases gradually subside and begin to feel the first signs of recovery from the crisis.