Advice when you need it most
The number of property sales in Bulgaria has increased for a third consecutive quarter in comparison with last year – 54 997 sales in comparison to 46 968 sales in the same quarter of 2010. The total number of the property sales in 2011 so far is 157 273, while in the whole of 2010 they were 182 376.
The prices of apartments in Sofia have decreased by 1/3 since 2008 due to the recession. If four years ago a one-bedroom apartment in the Bulgarian capital could sell for 78 302 Euros on average, at the moment it sells for 54 073 Euros. Only in the last year the prices have dropped by 9,78% .
However, according to the Land Registry, the total number of the sales in the first half of 2011 was only 102 276, in comparison to 73 867 sales in the same period of the last year. This is an increase of 27,78%. Most of the sales, about 25%, have taken place in the biggest Bulgarian cities: Sofia, Plovdiv, Varna, Burgas and Stara Zagora.
After the fall of the number of sales of properties and the price drop, the construction industry in Bulgaria and Romania has reached the bottom in the first half of 2009. Most of the developers in both countries turned out to be unprepared for the shrinking of the local property market and the end of the constant influx of foreign investors of the last couple of years. One of the major reasons for the sharply decreasing number of purchases is the limited access to mortgages which also caused the property prices to drop. At the same time the number of the properties on offer continues to grow. The shrinking of the property market has made many developers put on hold their new projects and drop the prices. It is expected that the price drop in Sofia and Bucharest this year will be between 10% and 20%. At the end of 2008 the average property price in Sofia was 1250 Euros per sq m while in Bucharest it was 1800 Euros per sq m. The highest prices were in the Slovenian capital Ljubljana – 2800 Eurso per sq m.
The rents of apartments in Sofia and Istanbul are almost the same. An apartment of 75 sq m in Istanbul rents for 431 Euros per month, while the same apartment in Sofia rents for 400 Euros per month. Renting in Instanbul, however, is better because tenants pay for the living are, while in Bulgaria, they also pay for the common parts.
Purchase prices of properties in Sofia and in Istanbul are also similar. A 75 sq m apartment in Instanbul sells for about 80 000 Euros, while in Sofia it sells for 78 400 Euros. The prices of larger apartments in Sofia, however, are by 20 000 Euros more expensive in comparison with Istanbul. An apartment of 120 sq m in Sofia costs 158 000 Euros while in the Turkish megalopolis it costs 123 100 Euros. The reason for this is the increased demand for bigger apartments in Sofia.
The newest hit on the property market at the Black Sea is three properties for the price of two. The developers have been experiencing serious problems with finding buyers, so they came with this new offer. In the recent months they have been offering free air-conditioners or fitted kitchens but this did not help to activate the property market. Now, the prices of all properties are not fixed. Prospective buyers receive only description of the property they are interested in. Bargaining is the name of the game and once there is interest price start dropping by 200 or even 5000 Euros and some times they even reach a 50% decrease of the initial price. Luxurious properties right by the sea in Nessebar are offered with a brand new Toyota Yaris as a bonus. However, 2000 Euros per sq.m. do not seem to justify such kind of bonus.
When prices are announced they are very reduced in comparison with last year. A studio apartment in Albena is offered for 18 000 Euros, while one-bedroom apartment facing the sea is for sale for only 10 000 Euros.
The most luxurious apartment is in an apartment complex in Tsarevo. It is offered for 5.5 million Euros off-plan as the complex will be completed in 2011. The buyer of this property will receive the most expensive car at the moment Bugatti Veyron as a bonus.