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Property Prices in Bulgaria Not Expected to Rise in 2012

The extent of the decline in residential property prices in Bulgaria are shown in the latest figures which reveal they are 5 to 10% lower in 2011 than in 2010.

Initial predictions for 2012 are that prices are largely expected to be unchanged as real estate markets around the country remain at a standstill.

Average prices in the capital city Sofia were around EUR 920 per square meter, down from EUR 1,100 in 2010, according to brokers.

Prices in Bourgas on the Black Sea fell to an average EUR 860 per square meter and in Plovdiv, Bulgaria's second city, they were EUR 770 per square meter. Bansko, which has been very popular with overseas buyers, saw prices fall by 25%.

'At the moment, sales have fallen hugely. It is almost tragic,' one hotel manager Dimitar Iliev told television station bTV. He added that the British have deserted the ski resort.

Vanya Voina, a sales manager, said that she believes prices at the moment were almost at bottom.

Brokers said that prices in major cities were relatively stable, but because of the decline in demand, prices had fallen. 'In some places the decrease is 8 to 10% while in other areas less so,' said Dilyan Dimitrov from Varna.

The type of properties most like to sell are present are two and three bedroom apartments, with price the key factor.

According to Polina Stoikova, operations director of a property sales company, the market is 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 were selling.

Brokers expected that the number of transactions would remain at similar levels as has been seen over the last two years.

The surprise for me is that it isn't worse!

We had the biggest credit binge ever in the UK, leading to the crunch of 2008-12, and in BG there was a frenzy of property speculation based on an unsustainable exchange rate between the euro (and hence the lev) and the GB£.

Many chickens have come home to roost now!

Agree with you houseman but isn't it the same all over the world at the moment? its not limited to Bulgaria.

I think so, although there is a lot of speculation on now in Brazil and a few other places like Hong Kong and Singapore.

Also prime sites in London and maybe other capitals are proving resilient, if you have a few million to splash out that is.....

Whether it is a good thing that some members of some societies are still able to own extremely expensive properties, so that the market doesn't totally collapse, is a matter for debate....

The report quoted by the OP seems to suggest that in BG it is actually the other end of the market that's still in demand.