A number of interesting and positive trends have become evident in Bulgaria Gateway's analysis of the property market for the first three months of the year.
Increase in market activity:
The average level of activity in the market for the first quarter of 2011 was slightly higher than in the same period last year and in the preceding period, Q4 2010. The increase was measured at 3%, which is relatively low but the importance of this increase is that it is the first move back into positive territory for almost three years.
Levelling out of prices:
Average prices of completed sales over the past three months have generally remained stable. City apartments and properties on the coast have seen little change but there have been falls of around 9% in the ski resorts and 6% in the mid-price sector in the bigger towns and cities. Interestingly, though, these price reductions appear to be coming from sellers accepting that their asking prices have been too high, rather than from buyers negotiating for lower completion prices.
Market trends:
As in previous quarters, the majority of completed sales in this period have been mainly for high cost luxury properties or for rural properties and village homes at the low end of the price scale, reflecting the fact that the main requirements of buyers are bargain prices and value for money. In addition, though, two new trends have emerged during this quarter. Potential buyers are now registering interest in: firstly, furnished houses in good condition priced at around €30000 to €40000 on the Black Sea coast and, secondly, low-cost rural houses for renovation - together with those that have already been renovated - in a number of inland areas, including Veliko Tarnovo, Sliven, Stara Zagora and Plovdiv.
Buyer Nationalities:
Bulgarians and Russians have continued to be identified as the main property buyers during this quarter. Bulgarians tend to be more interested in properties in the main cities, while Russians still focus their purchases in the Black Sea resorts. Although lower in numbers, there have been buyers from a number of European countries, including: France, the Netherlands and Germany but, probably because of the financial pressures in their respective countries, Greek and Irish buyers have all but disappeared from the market. The most interesting trend that has become apparent, though, is the return of British buyers who have re-entered the market with purchases of reduced price apartments in the beach resorts and low-cost rural properties.
Summary:
Describing the overall market situation for the period, experts from Property Partners BG said, "Buyers are returning; there are more client enquiries and web searches; the number of completed deals is rising and, for the first time since 2008, the market is moving from negative into positive territory. This both confirms and endorses the current experiences of our partners and reinforces the recovery that has been widely forecast for the second half of 2011".
Related articles:
Brits Searching for Bargains in Bulgaria's Property Market
Time to Buy in Bulgaria's Recovering Property Market
Look Inland for Today's Bulgarian Treasures
Increase in market activity:
The average level of activity in the market for the first quarter of 2011 was slightly higher than in the same period last year and in the preceding period, Q4 2010. The increase was measured at 3%, which is relatively low but the importance of this increase is that it is the first move back into positive territory for almost three years.
Levelling out of prices:
Average prices of completed sales over the past three months have generally remained stable. City apartments and properties on the coast have seen little change but there have been falls of around 9% in the ski resorts and 6% in the mid-price sector in the bigger towns and cities. Interestingly, though, these price reductions appear to be coming from sellers accepting that their asking prices have been too high, rather than from buyers negotiating for lower completion prices.
Market trends:
As in previous quarters, the majority of completed sales in this period have been mainly for high cost luxury properties or for rural properties and village homes at the low end of the price scale, reflecting the fact that the main requirements of buyers are bargain prices and value for money. In addition, though, two new trends have emerged during this quarter. Potential buyers are now registering interest in: firstly, furnished houses in good condition priced at around €30000 to €40000 on the Black Sea coast and, secondly, low-cost rural houses for renovation - together with those that have already been renovated - in a number of inland areas, including Veliko Tarnovo, Sliven, Stara Zagora and Plovdiv.
Buyer Nationalities:
Bulgarians and Russians have continued to be identified as the main property buyers during this quarter. Bulgarians tend to be more interested in properties in the main cities, while Russians still focus their purchases in the Black Sea resorts. Although lower in numbers, there have been buyers from a number of European countries, including: France, the Netherlands and Germany but, probably because of the financial pressures in their respective countries, Greek and Irish buyers have all but disappeared from the market. The most interesting trend that has become apparent, though, is the return of British buyers who have re-entered the market with purchases of reduced price apartments in the beach resorts and low-cost rural properties.
Summary:
Describing the overall market situation for the period, experts from Property Partners BG said, "Buyers are returning; there are more client enquiries and web searches; the number of completed deals is rising and, for the first time since 2008, the market is moving from negative into positive territory. This both confirms and endorses the current experiences of our partners and reinforces the recovery that has been widely forecast for the second half of 2011".
Related articles:
Brits Searching for Bargains in Bulgaria's Property Market
Time to Buy in Bulgaria's Recovering Property Market
Look Inland for Today's Bulgarian Treasures
For advice, assistance and information about Moving to Bulgaria, we recommend that you visit our website at MovetoBG.com - and for accommodation options, resources and services, we suggest Bulgaria Gateway
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