Decline in prices on the property market
Currently, the most sought after residential homes in Sofia are the small apartments like studios and 1-bedroom flats; however the demand is expected to increase in autumn. At the moment, the average decrease in the market prices of the apartments in Sofia has reached approximately 18 %, when compared to the last quarter of the previous year. The average market price of the residential dwellings in Bulgaria for the first three months of year 2010 is 980 BGN/sq.m, in Sofia however the price is far more than that.
The real estate companies inform that since the beginning of year 2010, there is an active demand in Sofia for newly built and completed properties. Therefore, the prices in this segment are remaining relatively stable. On top of that, the improving credit offers further act to stabilize the market. The greatest demand is for the recently constructed small apartments with high quality of the construction and good location, which are offered at a price up to 25000 Euros. The success is due to the exceptionally good quotations and attractive parameters for lower total cost.
The provision of this type of Sofia housing decreases, as the construction of new buildings is not that aggressive as it used to be. As a result, the trends in this sphere in the coming months can even turn around and the demand for small apartments is expected to exceed the supply. Discounts have been quite popular in the first quarter of this year and negotiations for reduction of the initially announced price were organized in 90 % of cases, which brought to an average discount of around 3000 Euros. Encouraged by the new bank advertisements, some Sofia apartment owners place higher property prices but if there is a buyer interested in the property, they bring the price down or sometimes lose the deal.
Real estate companies agree that there is a tendency on the Sofia apartment market for a slow and at first symbolic increase in the prices of the Sofia properties, which will become more solid in the third and fourth quarter of 2010. This however will happen only if the economic situation in Bulgaria improves.
