February 23rd, 2010 — 12:07pm
The number of new buildings in Bulgaria has dropped by 70% on an annual basis. In the last quarter of 2009 the number of the new planning permissions was 1343, while in the same period of 2008 they were 2452, according to the National Statistics Institute. This huge drop has come after 5 years of permanent increase of the number of planning permissions.
The recession in the construction industry has also had its impact on the size of the new apartments – their living area has decreased by 24% only from October to December 2009 in comparison with the previous quarter. Annually the drop has been more drastic – it has exceeded 70%.
The construction of new offices has also suffered. In the last quarter of 2010 only 63 planning permissions have been issued, which is a drop by 25% in comparison with the previous quarter and 37% on an annual basis. Most of the already finished offices are left empty, despite the decrease of the rents.
The price drop of real estates in 2009 is on average by 20% but in some parts of the country it has reached 60%. The real prices at which purchases are made in the Bulgarian capital Sofia are on average 23% lower in comparison with the period 2007 – 2008, i.e. the average price in 2009 was 980 Euros/ sq.m.
The price drop in the other cities has not been so drastic but property prices there have not reached the levels of those in the capital. In Varna, the second Bulgarian city, the price drop in 2009 was of 14%, while in Plovdiv and Burgas (the third and the fourth largest cities) – 15%.
Comment » | Bulgaria
February 22nd, 2010 — 12:09pm
The last quarter of 2009 was the worst one for the Bulgarian economy. According to the National Statistics Institute Bulgaria’s GDP has fallen by 6.2% and it has been 17 billion levs (about 8.5 billion Euros). The real annual drop for 2009 was of 5.1% in comparison with 2008. The official forecast of the Bulgarian government made in the autumn of 2009 was for a drop of 6.3% which later has been corrected to 4.9%.
Comment » | Bulgaria, Economy
February 22nd, 2010 — 11:45am
In 2009 the Russians have spent 11.3 billion USD to buy second homes abroad, according to the review of the department for properties abroad of the Russian estate agency DOKI. Properties in Bulgaria are the most popular among Russians and 21% of the clients of the agency have been interested in buying second homes in Bulgaria for the average price of 42 000 Euros. In second place are properties in Spain, where 17% of the clients of DOKI are prepared to pay on average 178 000 Euros. In third place are properties in Turkey at an average price of 50 000 Euros which attracted the interest of 12% of the clients of the Russian agency, closely followed by properties in the USA and Israel.
Another Russian estate agency MIEL – Distant Property Management revealed similar statistics. Again properties in Bulgaria are the most popular ones among Russians, followed by properties in Turkey, Spain and the Ukraine. This estate agency has divided their clients into three groups. The first one consists of young people under the age of 35 who buy studios and one-bedroom apartments in the price range 25 -70 000 Euros. They prefer Bulgaria in first place, followed by Egypt and The Czech Republic.
The second group are married couples at the age of 35 – 45. The look for one- or two-bedroom apartments for the price of 70-80 000 Euros in Monte Negro, Bulgaria, Spain, Germany, Italy and Turkey.
The third group consist of wealthy people above 45 who spend at least 250 000 Euros. They do not have specific preferences about the location of their property.
1 comment » | Bulgaria, Property