Residential land in Sofia twice more expensive than in Varna and Burgas

Bursting of the housing bubble in the country has led to a strong decrease in the prices of plots, which makes more people to consider whether they can afford to build and live in their own house.

Despite the decrease, however, they still remain at high levels. The reason - many investors have bought land at relatively high prices and don`t want to sell it at a substantial loss.

We can safely say that it offers of land suitable for a construction of a property, are still not quite at reasonable levels. Among the offered lots are declared retail prices of 200 euro per sq.m

And although, according to experts, transactions are usually concluded by up to 30% lower than the advertised sale prices, then we can definitely say that prices are still doing construction on the house very hard for the ordinary buyers.

For comparison, three years ago in Sofia plots were at average selling price for about 250 euro per square meter. The decrease for that period is within about 40%.

A comparison with Romanian capital indicates that there plots prices have fallen with 80% from their peak levels in 2008.

The price of land suitable for construction of homes in Varna is nearly twice cheaper than in Sofia. There, the average selling prices for this type of property is 110 euro per sq.m. Almost the same is the price in Burgas.

Having in mind this, we can conclude that either the property prices in Bulgaria are overvalued in terms of current levels of plots or prices for plots in Sofia are unrealistically high.

Close to the average prices in Sofia are the prices for parcels in Plovdiv at levels of 233 euro per square meter.

The cheapest construction land (in terms of the prices of land traditionally they hold between 40 and 50 % of the cost of the property) is in Ruse of the five leading cities. There euro per sq. m.

Based on the possibility of construction of a building with an area of about 21 to 22 000 sq. m. area, the cost of a land for a building is around 550 euros per square meter, excluding other costs that automatically shows that this is not a particularly good deal for developers, based on the average selling prices of properties around 720-750 euro per sq.m.

A comparison shows that three years ago the most expensive land put up for sale in Sofia was declared for price of 36 million euro. Based on its area of 80 000 sq. m, it comes at a price of 450 euro per sq.m.