Nothing new in the property market. After the summer saw for the first time in four years price increase, now the segment is experiencing a slight decrease – this time about four levs per square metre, or an average price falling from 885 to 881 levs. The reasons are the same – the crisis and lack of investors. People with money and desire to buy a home or a holiday home are well aware of the situation and take advantage of it, pushing vendors to the maximum possible discounts, before agreeing to go into the deal.
By the end of the year the decline is very likely to continue as usually the last months of a year are never a strong period for real estate transactions. An interesting development is to be observed in different regions. According to the National Statistical Institute in 11 of the 28 regional centres and the capital appreciation has been reported. It happened however only where prices are below the national average. These include Gabrovo, Pernik and Shumen. While in more expensive areas, prices went below those in the second quarter. Another feature is the divergence in prices. The gap opened more and now we have differences of prices per square meters of almost 300% between cheap and expensive cities. In five regional centres the mean square value is less than 600 levs – these are the small towns of Kyustendil, Montana, Vidin and Vratsa, and Lovech. At the other extreme are the three destinations with prices over 1000 levs. The capital city regained first place with 1447 lev for a square, but it is close to Varna with 1425 levs on average. Burgas is behind then too with 1135 levs a square metre.
The supply of new homes continues to shrink – construction slowed down very visibly, investors are missing and most of the companies in the sector of building construction are now retraining to participate as subcontractors for infrastructure and other public or municipal projects. However, all deals are different say brokers and probably they have right for that. In August and September we clearly saw that in some cases, prices from 2000 lev per square metre are no exception. But this is only for deals in prestigious and sought after properties in popular areas of Bulgzsriz’s major cities. Such examples were in Varna and Sofia. In all the cases the property is of a new luxury construction type in buildings with unique architecture and all amenities.
Meanwhile the parking fee hit sales in the city centre of Sofia. In August and September, a drop of interest for purchase or rent in these areas was marked. This trend was transferred to the surrounding neighbourhoods as Lozenets, Strelbishte, Ivan Vazov, Banishora and Lagera… On the other hand, significantly increased the available properties in the city centre. For retired residents it is financially disadvantageous to maintain expensive large housing areas there, they prefer to sell them and use the money to live peacefully in a smaller home in the suburbs.
