Bulgarians Spent BGN 200M on Property in June - Brokers

At least BGN 200M higher levels of cash flow were recorded on Bulgaria's property market by the end of June and the beginning of July, 2014.

According to brokers, additional BGN 40M real estate investments are expected in the autumn when the market activity traditionally improves. The flows of cash have most probably come from deposits withdrawn during the banking system panic in June, Bulgarian 24 chasa suggests.

A total of 220,000 property transactions per year are carried out on average. Their number is nearly 19,000 per month at an average price of BGN 100,000 per deal. In July only, brokers report a 15% growth in real estate transactions.

Cash flow on the property market may turn out to be higher, as the survey does not include the property purchased by Bulgarians abroad, the media outlet notes.

Experts report an unusually increased activity in the summer months in the transactions in office space and building plots with construction permits.

Big real estate agencies suggest that it is entirely possible for the migration of deposits to properties to increase for two reasons - the market is traditionally weaker in the summer and records growth in the second half of the year. Secondly, the process of purchasing property takes at least 4-6 months.

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