Bulgaria Real Estate Market 2009 Overview

Bulgaria Real Estate Market 2009

All the resources found by Googling the Internet are full with controversial information and news about the actual situation of the Bulgarian real estate market.

We all know that due to the global economic crisis, Eastern Europe and implicitly Bulgaria is heavily hit, especially the real estate sector which seems to be the most affected.

It is well known that for the past 5 or 6 years the property in Bulgaria has been marketed everywhere in the world, so there is no surprise that real estate investors from all over the world rushed in to buy a slice of the most sought after market in the world, or so it was seen Bulgaria, not very long ago.

The truth is that the number of sold properties has fallen in the first half of 2009. There is also a very low demand for the newly built properties.

The effects of overbuilding are seen everywhere across the country, especially at The Black Sea resorts and the ski resorts across the country, where a sharp decrease of interest in property was noted.

Some internal sources are saying that large-scale property development projects have been frozen or given up, and some say Bulgaria’s real estate market has shrunk back to its 2005 levels. Real estate transactions across the country have shrunk by some 35 per cent in the first half of 2009 compared to 2008, the same period.

The residential property prices in Bulgaria are over 20% down compared to the second quarter of 2008

Most of the sellers across Bulgaria have to lower the initial asking price as there is too much offer and to less demand for the residential property.

As price reduction of residential properties is over 20% across the country and over 30% in some cities, the motivated buyers are not hesitating to purchase the chosen property.

However, there is good news too, as most of the Top-end estate agents and market analysts are predicting that a residential market recovery is expected in the first half of 2010.