Bulgaria home prices fall in 2012, surveys show

Property prices in Bulgaria fell from around two to five per cent during 2012, according to data from agents –but there is still plenty of interest from Russian buyers.

This is the fourth year that average asking prices for residential property in Bulgaria has fallen, according to figures from agency network website www.imot.bg, which estimated average market falls at under 5%.

The average asking sales prices in prime neighbourhoods such as the Doctor's Garden fell around 15%, it says, but that was unusual.

In the capital Sofia, most districts saw average prices down by 4-6% year-on-year, the report shows.

The imot.bg agency says the price fall was caused by sellers needing to generate cash by selling their homes rather than a lack of demand.

It has urged developers to stay flexible and offer payments by instalments, buy-to-rent options and other schemes.

Few, if any sellers, obtain asking prices for property, the agency warns.
According to another report by Russian news source, Komsomolskaya Pravda, prices in Bulgaria fell 2.2% on average last year. Bulgaria is one of the most popular targets of Russian property buyers.

Polina Stoykova, Chief Operations Manager of website BulgarianProperties.com believes city property sales were steady and a good supply was available, but that was countered by domestic worries over income and jobs.

If the economic environment is stable in 2013, prices will remain at 2012 levels, she predicts. Many buyers, especially first-time buyers, are considering purchasing property, she says.

“This desire for a better standard of life and success in endeavours, combined with good prices that the market offers will activate the city market to a certain extent in 2013.

“As for vacation properties, the interest from Russian buyers will remain and continue to grow in 2013, which will import market optimism. This optimism will gradually spread to other market segments that will inevitably feel the positive impact of increased foreign interest and inflow of fresh funds.

“We can say that 2013 for the holiday properties will be again a year of Russian buyers. They are already very well informed buyers, keen to acquire second home in Bulgaria.”

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