Bulgaria Property Prices Down 20% y/y
Average asking sales prices across all property sub markets fell 20% on average on a year-on-year basis, data of realtors shows.
There are significant differences between neighbourhoods, with no particular area being resilient to the changed market conditions, according to a report of Colliers International.
Only Doctor’s Garden remained above 2007-levels, but the experts point out that there were quite few offers with a wide span in prices per square meter.
During the second half of 2009 the supply of new residential units grew at a modest pace. According to data published by the National Statistical Institute, the growth rate was reduced to almost half of what was delivered to the market in 2008; 41% fewer units were added to the market in 2009 compared to 2008.
In general, there was limited supply of high-quality properties on the market. In H2 2009 very few projects entered the construction phase. Usually those projects had previously secured financing but have experienced delays due to administrative obstacles.
Many residential developments continued the construction works, but at a slower speed. Some projects were put on temporary hold, either due to shortages in financing or low demand.
During H2 2009 the supply of foreclosed properties increased measured by the number of units offered to the market. However, it is still not a significant supply factor on the residential market.
Demand started picking up in August/September after six months in 2009 of almost complete stand still, the majority of it focused on properties priced below EUR 1,000/sqm for a fully finished product.
Text source: novinite.com
Image: BGNES
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