Property prices are rising every day

propertywisebulgaria.com, 2007-10-25

     Real estate prices in Varna and Sofia have seen dramatic fluctuations over the last month. The average sale prices of residential units in Sofia at the beginning of the year stood at 650 to 700 euro/sq m, according to imot.bg statistics. Currently, small apartments in districts like Drouzhba, Lyulin, and Mladost already have hit 900 to 1000 euro/sq m, and prices of flats in 15 other regions vary between 1030 and 1400 euro/sq m. Apartments in 10 of Varna's boroughs sell for above 1 000 euro/sq m.
     It is not clear, though, what the actual transaction prices are, specialists argue, alluding to the sometimes considerable disparity between offer quotes and real prices at which deals are struck.
     Population migration, facilitated access to bank loans, disposable income made on the so-called grey (shadow) economy are among the main propellers of the interest in Varna and Sofia and account for the significant property price hike in these cities. However, new construction and pre-fab apartments of low quality in bad locations will see a 10 to 15 per cent decrease within a year, according to Orlin Vladikov, manager of Orvitex and ex-chairman of National Real Estate Association.
     Growing supply of new construction units, along with the emerging secondary residential market launched by banks, will also affect property prices, resulting in market stabilisation. Bulgaria will follow the lead of the Czech Republic, Poland, Hungary, and the Baltic states, where the real estate binge cooled down a year or two after EU accession.

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