Property prices in Bulgaria for the third quarter of 2013: Sofia, Varna, Bourgas and the region of Sunny Beach.

Analysis by New Estate of the latest data from the National Institute of Statistics shows that prices in various regions are changing in different directions.

On average the prices in Sofia are increasing by 0.67% with nominal value of 737 Euro /sqm. The property values in Sofia are marginally increasing for the second quarter in a row.

The property prices in the two major seaside towns of Varna and Bourgas continue to drop; prices in Varna register 1.03% decrease and Bourgas 0.44%. The nominal values per sq. m are respectively Varna 704 EUR per sq. m and Bourgas 568 EUR per sq. m.

II. New Estate Data

The data of the National Statistics Institute represents average figures from across the full spectrum of the property market including transfer of commercial property, land, inheritance, private sales etc. For data more relevant to typical vendor scenario of private new build re-sales see below:

II.1 Cities

According to actual data from real market sales, New Estate has seen that in the third quarter of 2013 city prices have varied from 500 to 850 EUR per sq. m. Very generally the properties at the central part of Sofia as well as the Southern areas achieve higher values.

The prices in Bulgaria’s so called ‘sea capital’, Varna, very between  450 and 800 Eur per sq. m.  Prices in Bourgas are between 450 EUR per sq. m to 650 Eur per sq. m

II.2 Holiday Areas

The prices in the Sunny Beach region, which recently became the most preferred destination for the Russian buyers, vary as follows:

Ravda: 400  -700 Eur per sq. m

Nessebar: 600  – 800 Eur per sq. m

Cherno More (Nessebar):  400  – 500 Eur per sq. m

Sunny Beach:  400  – 700 Eur per sq. m

St Vlas (new part):  500  – 800 Eur per sq. m

St. Vlas (old part above the road Sunny Beach Elenite): 350 Eur per sq. m

Elenite: 500 – 650 Eur per sq. m м

Kosharica: 320 – 400 Eur per sq. m

The prices in the ski resort Bansko continue to decrease and additional drop of 5% was registered in the third quarter of 2013. Transactions are now rarely seen above 300-350 eur /sqm.

III. Dynamics of the Market

The market continues to demonstrate robust turnover as the number of deals is expected to increase by 10% compared to the second quarter of 2013. Year on Year the number of transactions is expected to see a minor increase, except Sunny Beach where the increase may reach 10%.

VI. Forecasts

The 4^th quarter of the year is not expected to show any surprises and prices will to a large extent follow the trend of the 3rd quarter.

Sofia prices will continue on their gradual road to recovery and will most likely show a slight increase. Bourgas and Varna, where many prices are overvalued, will continue to decrease as vendors accept the reality of current day achievable rates.

Sunny Beach area will continue to attract Russian buyers, which will contribute to the stabilisation of the region and the maintenance of prices at the current levels.

Despite the start of the ski season Bansko property market will remain depressed and a further decrease of about 5 % is to be expected.