The price of properties in Bulgaria are stabilizing, according to the latest results data from Bulgarian real estate agency Bulgarian Properties. Hypocredit Group are also seeing the same outcome from their recent surveys of the Bulgarian property market.
One of the reasons for the leveling off in prices is the reduced amount of new construction being released on the market. Data from the National Statistics Institute shows that construction permits for Bulgarian properties have decreased by 30% in the last 12 months. The increased availability of mortgages and credit is also helping to put a floor under the property market.
According to Bulgarian Properties the average price for standard apartments in Sofia in Q3 2010 was around 870 euros per sq.m., which is only 15 euros per sq.m. less that the previous quarter. The lowest Bulgaria real estate available in Sofia is around 710 euro per sq.m. For luxury Bulgarian properties for sale the average prices remain around 930 euro sq.m.
The prices have remained stable for the last 6 months and there is an increase in the number of transactions.
HypoCredit Group have seen the largest demand in the Sofia apartments sector, with apartments around 50 sq.m. being the most popular. With very strong demand for this type of apartment they are starting to see small price increases in this sector. The ratio of sales price to rental price makes it popular for owners to purchase their own property as in many cases this is cheaper than the rental price.
Their prediction is that the market for Bulgarian properties will gradually start to increase in 2011 and beyond as current property prices in Sofia reflect good value when compared to rental costs.