The Bulgarian property market came out of the crisis

The market bottom has been reached, property prices have stopped falling, according to the analysis for the third quarter of 2013 from BULGARIAN PROPERTIES.

The property prices respond quickly to economic trends and show precisely and in plain language in what direction the economy is developing, whether the economy is overheating during an upward cycle, or during a crisis - how serious it is and when the economy will start to recover, the analysis announced.

According to the company, the real estate market is showing signs of a started recovery (increase in sales volumes, price stabilization, rise in the volume of mortgage loans, etc.). The trends which are confirmed during 2013 are the market bottom has been reached, property prices have stopped falling, the property market is now balanced and stabilized, deals have increased and the process of a slowly but steady recovery has started, experts said.

On the one hand, this happened thanks to the constantly increasing interest and the purchases of holiday properties on the Sea by Russian buyers - a positive market influence which has spread to the other market segments. On the other hand, the relative economic stability and the decline in interest rates on mortgage loans to their lowest levels since the spring of 2006 contributed to a more active local market, the analysis reported.

The past quarter is characterized by large dynamics, both in summer resorts and in major cities. The enquiries from potential buyers rose by 20% year-on-year and property sales increased by 5% in the third quarter of 2013 compared to the third quarter of 2012. The largest group of buyers remains the Russian buyers in the third quarter - they account for 40% of all buyers of residential and holiday homes in Bulgaria in the past three months. The second largest group on the market is the Bulgarian buyers who purchase mainly in big cities and especially in Sofia.

The company reported an increase of 10% in sales in Sofia in the third quarter of 2013 compared to the same period of last year. In Sofia the prices vary between 720 and 750 Euro/sq.m. in the past 1-2 years. The average price of concluded deals was 741 Euro/sq.m. (compared to 747 Euro/sq.m. in the second quarter and 710 Euro/sq.m. in the third quarter of 2012). There is no significant change in the average total price of the purchased apartments in Sofia. It is 64,200 Euro during the past few months.

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