Report on prices for residential properties in Bulgaria in the last quarter of 2012:

According to data released by the Bulgarian National Institute of Statistic on 23.01.2013, the prices of the residential property for the last quarter of 2012 have decreased by a further 0.7% compared to the previous quarter. The biggest decrease has been registered in Kardjali and Razgrad (-2.95%) and Pazardjik (-2.8%). However, this is the smallest quarterly decrease we have seen since late 2008.

The national average price for residential property in the fourth quarter was 875 BGL per sq. m or aapproximately 448 EUR per sq/ m. The highest average prices are registered in Sofia at 1,440 BGL (734 EUR) per sq. m, Varna 1,425 (730 EUR) and Bourgas 1,140 BGL (584 EUR).

The reported prices are in line with the continuous trend of decreasing property values. According to the New Estate’s analysis the market fundamentals still do not suggest a forthcoming upturn:  demand is still depressed and the market continues to be saturated by unsold units built during the property boom between 2000-2008. Additionally, the volume of vendors continues to flood the market further increasing choice and supply, which serves only to put pressure on achievable prices and extend vendor’s length of time to find buyers in the market.

New Estate expects property prices to plateaux in the third quarter of 2013, followed by at least 18 months of minor upwards and downward fluctuations.