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Bulgarian Property & Real Estate News

Bulgarian Properties Price Indexes for March 2012

At the end of the first quarter of this year, the Bulgarian Properties sales indexes revealed listing prices of the apartments in four key locations: Sunny Beach, Varna, Sofia, and Bansko. The purpose of these prices was to offer the latest information about the ongoing and new market trends in the Bulgarian property market. According to the company, its indexes have remained about the same levels since the last 6 months. Therefore, it considers this point to be a good indicator of stabilization for Bulgarian property for sale.

Starting with Sofia property, the index change in the month of Feb 2012 was 0.07%, while the change in last one year was +4.55%. Further, the change measured from the highest value came up to 41.44%. The current index value for the listing apartment prices in Sofia by Bulgarian Properties is 58.56 points as of March 2012. (The base point of the index was set at 100 in January 2008) Further, the average monthly listing price is 875 Euro per sq. m. This means you can buy Bulgaria property of 200 sq. m. offered by this company in the capital at an average of 175,000 Euro. However, it was found that many deals for Bulgaria property for sale were offered at an average price of 735 Euro per sq. m.

In Varna, the index change in the month of Feb 2012 was +1.01%, while the change measured in last one year was -6.75%. The change gauged from the highest value was -42.29%. Bulgarian Properties’ current index value for listing apartment prices in this second largest city is 57.71 points as of March 2012. Coming to the average monthly price listing, it is 860 Euro per sq. m. but the deals were settled at 800 Euro per sq. m. during the year’s first quarter.

Talking about the Sunny Beach, the index change in the month of Feb 2012 was -1.91%, while the change measured in last one year was -34.39%. The change gauged from the highest value was -49.72%. However, the company’s current index value for apartment prices in this area is 50.28 points as of March 2012. Considering that this is the largest beach resort area, it is surprising to know that the average monthly listing price is 665 Euro per sq. m. for apartments. This is truly less than the prices of the aforementioned cities. Even more surprising is the fact that the deals were finalized in the first quarter at an average price of 440 Euro per sq. m.

Coming to Bansko, the index change in the month of Feb 2012 was +9.95%, while the change measured in last one year was -29.05%. The change measured from the highest value was -52.76%. However, the current index value for apartment prices measured by Bulgarian Properties in this biggest ski resort is 47.24 points as of March 2012. Despite the fact that it is a famous ski resort, the average monthly listing price here is 605 Euro per sq. m. Even more shocking was the fact that the deals in the first quarter got completed here at an average price of 465 Euro per sq. m. Well, we can conclude that a really cheap property in Bulgaria is available at this skiing destination! If you are looking for other cheap Bulgarian property in ski areas you should also check out Borovets property. It also has some very good value ski properties for sale at the moment and is much closer to the capital Sofia than Bansko, thus offering a better investment potential. Borovets apartments are very popular all year round with wealthy Bulgarians living in Sofia. They often buy a holiday apartment in Borovets and visit there at the weekends and holidays.

Bulgarian commerical property sector starts to recover

There are signs that Bulgaria’s commercial and retail property markets are starting to recover. Several new entrants into the local property market have shuck things up and revitalized interest.

In Sofia the arrival of the Ikea furniture store has certainly increased competition in the furniture segment. As a result of Ikea arrival several other furniture retailers are modifying their offers and in some cased relocating their retail premises in order to compete better. Some existing shop simply cannot compete with the new entrants and will most like close down their operations.

The main new commercial property projects that are planned for Sofia in the next 12 months are Bulgaria Mall, Sofia Ring Mall and Paradise Center. Together these developments will bring almost 200,000 m2 of new commercial and retail property onto the Sofia property market. Read more…

Bulgaria apartment prices start to bottom out

The current report from the Bulgarian National Statistical Institute (NSI) for prices of Bulgarian apartments in the Bulgarian cities shows that prices in the fourth quarter of 2011 remained larger static versus the third quarter. The median price drop for Bulgaria apartments was just 1.6%, but the property prices in places like Pernik and Montana have decreased 9% and 7% respectively.

The annual figures for prices of Bulgarian apartments in the smaller towns decreased by approximately 6% which is virtually the same as in 2010.  The reduction in prices of apartment properties when inflation is considered was 2% for the quarter and 8% overall for the year.

The NSI figures show that the average price of a Bulgarian apartment in the regional cities in Bulgaria was 453 euro per m2 in Q3 2011 and broadly speaking the prices were the same in the capital Sofia and in Varna.

Overall the total price drops for city apartments in Bulgaria has been 37% since the market started to readjust 3 years ago. At this level buyers at now beginning to re-enter the market for apartments due to the low prices. In many cases it is now cheaper to take a mortgage on the apartment than to pay rent.

Bulgaria apartment prices down in Q1

Bulgarian apartments for sale in the capital city Sofia have decreased 8% in Q1 this year.

The prices of Bulgaria apartments averaged 860 euro/sq.m in Sofia in Q1 2011 down from 920 euro/sq.m in Q4 2010. This is based on apartments listed with the Bulgarian Properties estate agent.

Sales of apartments in Bulgaria have increased 100% compared to 2010 with the main focus of sale being for apartments in Sofia.

Bulgarian real estate agents expect that apartment prices will continue to increase in the Sofia region due to population growth and movement from smaller regional towns. It is expected that many of these new arrivals in Sofia will focus on buying bulgarian apartments in the capital as this is where the best opportunities for jobs are based.

Bulgarian apartment prices are stablising in 2011 having decreased for 2 years following the bursting of the credit bubble in 2008.

Bulgarian properties start to stabilise

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.

Read more…

New metro stations increase demand for Sofia properties

The opening of several new Metro stations has had a significant impact on the Sofia property market. Buyers in the Bulgarian capital are focusing their property buying in the area around the new metro stations.

Research from the Bulgarian property website, has showed that demand for previously popular areas like the upmarket location of  Ivan Vazov, Iztok and the City Center, has decreased recently.

Instead Sofia property buyers  who were looking for real estate in the regions of  Mladost, Darvenitsa and Krasno Selo. The Bulgaria real estate agents believe that the change in demand is being driven by the new metro stations and improved infrastructure in these areas.

It is evident from recent property buying patterns that buyers are increasingly considering the local services and metro station when deciding where to buy properties in the Bulgarian capital. this pattern is also affecting the price of properties in these areas.

Vacancy rates increase for office properties in Bulgaria

The vacancy rate for office property in Sofia is likely to increase to around 23-28% by the end of this year as a result of several new office buildings opening in the next few months.

These new Sofia office buildings will bring the total amount of office properties in Sofia to around 1,250,000 sq m. The biggest amount of vacant office blocks is in the suburban parts of Sofia and in the Class A office category.

In 2010, the building of office properties continued despite the poor economic situation and several major projects that were started during the boom of 2006-2008 have just been finished recently. As a result of the increased supply the rental rates have dropped and now average around 10-12 euro per sqm for Class A office and 5-7 euro per sqm of Class B offices. As more supply comes online the rental rates for Sofia properties is expect to fall further. Read more…

Construction costs of Mall Bulgaria increases

The construction cost of the Mall Bulgaria retail centre in Sofia is expected to be almost twice as much as was first planned two years ago. The cost of the commercial and retail development is estimated at close to €220 million.

The retail complex is a joint venture between Bulgarian property developer LSProperty and the international real estate group Salamanca Capital. The Mall Bulgaria is managed by Eli Egosi, who were part of the team that worked on the Mall of Sofia project. Read more…

Sofia property market among world’s pace-setters

The Bulgarian capital Sofia ranks 49th in the global index of office rental markets released by international real estate property consultancy CB Richard Ellis. The annual rental cost for prime office property in Sofia is $517/sq m. Athens is the only city in the region ahead of Sofia property in the rankings. It placed 36th with annual rental cost of $567/sq m. Read more…

Bulgaria property attracting new investors on the back of good returns

The latest real estate news after Bulgaria’s first month as part of the EU is that typically conservative investors like pension and insurance companies are starting to take interest in the Bulgarian property market. This new type of investor is interested Bulgaria real estate investments because the political and economic profile for the coutry has improve. There is less perceived risk now that Bulgaria is in the EU and also there is a plentiful supply of cheap credit.

During 2006 we saw several large scale Bulgarian real estate takeovers most notably the purchases of the Mall of Sofia and Business Park Sofia. According to Forton real estate brokers, the main interest for these investors will be prime commercial real estate and office developments in the major cities. Read more…

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