[size=85:10wsivgg]novinite 12 July 2010

Real Estate Prices in Bulgaria Continue Dropping - Report

The prices of real estate in Bulgarian cities still mark a trend of decrease, according to data from Bulgarian real estate agency Foros, with the biggest drop in Veliko Tarnovo and capital Sofia.

The report refers to prices according to offer, not according to actual transactions.

For the first half of 2010 prices in Veliko Tarnovo have dropped with 10.84%, and those in Sofia – with 7.55% of prices for the second half ot 2009.

Some regions have nevertheless retained a marginal increase of prices, like southern cities of Stara Zagora (up by 1%) and Burgas (up by 0.58%), according to the report.

Last week a conflicting report was issued by real estate agency Address, quoting a 1.46% increase of prices in Sofia.

Foros reports a medium profit rate for real estate transactions of 5.9% for the overall country, with 9.03% for Tarnovo, 6.06% for Stara Zagora, 5.7% for Varna and 5.45% for Sofia.

According to Foros, the secondary market consists mostly of real estate purchased for investment purposes 2007-2008. The analysis notes a considerable drop of demand and a rise in the number of offers, due to the economic crisis.

The report mentions that the most sought-after properties are two- and three-room residential apartments, at prices EUR 44-45,000 and up to EUR 85,000 respectively for the two categories.