Declining Real Estate Prices

The situation on all real estate markets has been adjusted in late 2008 – early 2009, the global financial crisis that began in mid-2007 due to the U.S. mortgage crisis. Certainly the crisis is reflected also in the market Real estate in Bulgaria. Property in Bulgaria has always been inexpensive compared to real estate in other European countries. Indeed, property prices in Bulgaria have grown year by year in the last 5-6 years, but contrary to This apartment in Bulgaria, the average (40-60 square meters) and is now worth approximately within 25 to 50 thousand euros – depending on the location of infrastructure, the proximity to the sea, etc. Recently Russian media reported that the annual rental value of only one luxury apartment in Moscow to buy 11 apartments in Bulgaria in the seaside resort of Sunny Beach, on average 35 square meters each. In connection with the financial crisis in last quarter of 2008, some banks have stopped kreditirovat when buying a home in some parts of Bulgaria. Also stopped vydavanie loans for the purchase of old apartments – in buildings constructed 35-40 years or more ago.

Property prices in Bulgaria’s ski resorts have begun to decline mainly due to the problems of British investors, unable to pay before the end of their purchased flats in installments, has terminated the contracts and suffered losses. Builders immediately started to offer these “English” flats in the property market at prices 8-10 percent lower than the other apartments. At the same time, prices began to fall on concrete, brick, iron and other building materials, as well as reduced prices and transportation. All this led to a decline in property prices in Bulgaria in early 2009 by an average of 8-10 per cent – in the ski resorts up to 16-18 percent in urban areas, resort towns and resorts the Black Sea coast – to 5-8 percent. Many Russian stars take advantage of low prices and have already bought houses and apartments in Bulgaria’s Black Sea coast. In March 2009, “the fourth represents a musketeer, Boyarsky bought a house 160 sq.m., near the seaside resort of Sunny Beach for nearly 100 thousand euros. In the words of the actor: it is better to invest in real estate, than to keep the paper at home. Second home in Bulgaria also purchased Lolita Hope Babkin, Larissa , Vladimir Vinokur and others. In 2008, Philip had bought 12 apartments in the new complex on the sea, too far from Sunny Beach and Bourgas. Now Bulgaria is already on the threshold of a new active tourist season on the sea, which begins in early May. Real estate market experts believe that housing prices in Bulgaria will not fall in coming months because of the onset of the summer season. The entire period from May to September is active in Bulgaria’s tourist season along the coast and in this period of interest in resort real estate in Bulgaria is traditionally high. Likely and this year is no exception. Of course, some developers and agents will continue to offer discounts on real estate, but these proposals will no longer be a mass character, as it did in the first quarter of 2009.