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Large discounts for Bulgarian property

Submitted on Wednesday, 10 November 20102 Comments

Just as it used to in the past, in May residential market of Bulgaria will continue surprising the purchasers with unprecedented discounts.
In the centre of the capital a house was sold for the price slightly exceeding Euro 50,000. The area of the house is 90 sqm, and the given price is only 55% from the initial one. Therefore, the house was sold for the price almost twice cheaper comparing with the declared value. However, such actions of sellers and drawbacks in respect to the clients become more and more rare, and the sellers have almost no desire to discuss reduction of prices.
According to the statistics, in the first month of this year when buying residential property in Bulgaria they saved Euro 3,500, while at the end of last year this figure comprised on average Euro 6,100 per transaction. In 2009 sellers of large houses favored the purchaser most of all – they were ready to give away Euro 10,000 from the initial price for the building. And this year prices were lowered by no more than Euro 5,400.
Meanwhile, within the last months we saw considerable drop in the number of buyers. Demand for property decreased by 14.5%. The year 2009 showed total growth of sales volume by 7% per month, while the largest volume of sales was demonstrated by the beginning of 2010. Within the last months there was considerable drop, and sales volumes saw decline by as much as 15%.
The reason for such situation is that the sales priority shifted slightly towards new price levels. Meanwhile, one should not expect the next wave of growth in the nearest future – there will be no more high prices this year. According to the statistics, greater part (62%) of transaction in May was associated with houses within the price range from Euro 30,000 to 40,000. Such price can be usually paid for a 2-room apartment in the country near the capital with area of 50 to 60 sqm. Transactions with 70 to 80 sqm apartments sold for Euro 40,000 have become quite common.