[size=85:zf7a4awc]novinite 05 May 2010

Bulgaria Real Estate Continues To Be Buyers Market

Demand for smaller real estate in Bulgaria could increase this year as the number of small properties being built has fallen so much that there is not enough supply, it is claimed. Small studio flats priced at around €25,000 have been accounting for 34% of total sales in the country’s real estate market but few new projects are due for completion, according to property consultancy Address.

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The supply of such types of studios is decreasing while new construction for the moment is rather dormant. This is likely to create a demand that is likely to surpass initial forecasts,’ said marketing manager Kaloyan Bogdanov.

Buyers are bargaining hard and in 87% of cases they are asking for discounts on asking prices. In the first three months of the year the average discount amounted to €3,000.

The agency sellers are being urged by banks to keep the prices high but have to make discounts if they want to sell or risk losing buyers. On average, the discounts amounted to about 5% of the asking price.

The real estate market shows no sign of recovery yet, the agency continued. It reckons that a mild rise in values in local real estate is not to be expected until the third, or perhaps even the fourth quarter of 2010 because of the economic situation.

Other agencies think that the bottom has been reached. Aristo is even forecasting a 10% increase in prices by the end of 2010. But according to agencies such as Foros, Colliers, Address and Bulgarian Properties, real estate values will continue to depreciate until the beginning of June. They reckon on a further 10% decrease followed by a stabilization in prices.

And according to Industry Watch, real estate values are likely to drop by another 10% due to the weak influx of foreign capital and delayed bank credit in Bulgaria and the fact there is no sign of foreign investors returning to the market.

Bulgaria was once a favorite of overseas buyers especially from the UK, Ireland and Scandinavia. From 2006 to 2008 foreign investment in Bulgarian real estate accounted for more than €2 billion while in the preceding three years it was about €300 million a year.

But since the global economic downturn the flow has stopped. Real estate in Bulgaria's largest cities and towns recorded an average decrease of about 28% in the third quarter of 2009, compared to the previous year, according to figures from the National Statistics Institute (NSI).

In light of the economic crisis in Bulgaria and rising unemployment, the number of potential buyers in the country is only likely to decrease throughout 2010.

it does not look good just now, or in the future either, bulgaria has set it sights on greed and the other countires will see this too, fair play is not on their agenda, they want more and more and offerring little in exchange, this major flaw will be bulgarias downfall sadly. shame cause its a nice country.

I think your right starlite I have visited Bulgaria now for more years than I want to remember and yes I have seen it rise but unfortunately I now see its decline and to be honest I don't see it rising again in the near future greed is unfortunately the problem I believe but not necessarily by the Sellers I do think that REA's have a lot to answer for here

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This is very sad for those who have already bought when the prices were much higher than now but I guess as a potential buyer I'm not complaining

scott wrote:

This is very sad for those who have already bought when the prices were much higher than now but I guess as a potential buyer I'm not complaining

Got to agree with here Scott this is a buyers market and I think it will be for some time not only in Bul;
garia but most of Europe

Its a real shame for those who are trying to sell and get back what they spent and I know there will be those who will say they should have made sure its what they wanted first but we all make mistakes and its not nice to lose money to so my heart goes out to the sellers at the moment

sarah

I have 3 of houses to sell in my village, I have been working on over the last 3 years. one nearly complete and for rent or sale, and two under reconstruction. When the banks were going bust in the USA and Europe we figured to get out our little bit of cash and put it into old property, I still think we did right. It restricted the cash flow, but although our bank was safe in the long term it could have been different! The price of village property with all the land that you get, I still think is a bargain, I also think that the next buyers will be a bit more serious about living and working here and not just in it for a quick profit. which will be good for all of us.
Also It's the perfect country for self sufficiency which on-one ever seems to mention! bring back the good li :Ch:fers

dave b wrote:

I have 3 of houses to sell in my village, I have been working on over the last 3 years. one nearly complete and for rent or sale, and two under reconstruction. When the banks were going bust in the USA and Europe we figured to get out our little bit of cash and put it into old property, I still think we did right. It restricted the cash flow, but although our bank was safe in the long term it could have been different! The price of village property with all the land that you get, I still think is a bargain, I also think that the next buyers will be a bit more serious about living and working here and not just in it for a quick profit. which will be good for all of us.
Also It's the perfect country for self sufficiency which on-one ever seems to mention! bring back the good li :Ch:fers

Yes your right in what you say Dave I think there were too many who thought they would make a quick buck and maybe just maybe others will look and learn from the mistakes that a lot seemed to have made