Sofia Housing Prices Plummet to EUR 500 per Square Meter

The lower residential property prices led to the increased number of real estate transactions in Bulgaria in the month of May. Photo by Sofia Photo Agency

A significant fall of the prices of residential properties in Bulgaria has been registered in the first four months of the year.

The data was released Wednesday by the real estate brokerage company "Address."

In the capital Sofia the decline is from 16% to 38%, while Varna registered a decline from 7% to 48%. The lowest registered price is in Sofia's "Lyulin" quarter - EUR 454 per square meter for a "new construction" apartment.

Buyers are mainly looking for homes with areas between 50 and 70 square meters, priced between EUR 35 000 and 55 000. 30% of those purchasing newly constructed homes also look to buy a garage.

The lower prices led to the increased number of real estate transactions, according to "Address".

In the month of May, 70% of the buyers are looking to buy a home for their own use while only 30% rely on partial bank mortgages. The rest have own funds and are not rushed with their purchase. They are inclined to sign the deed only after finding the ideal "price-location-quality" ratio. The data further reveals that most of those willing to delay the deal are buying properties as future investment.

Beginning May 10 until Wednesday, "Address" has registered 40% more buyers per week compared to the previous four months, with 35% of them deciding to buy relatively quickly.

The "Address" professionals, however, point out that the latest, more promising data does not mean a permanent positive trend for the market or the prices. There is still a staggering number of empty available apartments - there are no buyers for about 7 000 homes listed for sale.

42% more housing properties have been built in 2007 compared to 11% in 2009 with a nearly 5% decrease of the real estate deals.

 

 

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