Bulgaria’s Dwelling Prices Down by 6.1% y/y Q3 2011
The market price index of Bulgaria's dwellings for the third quarter of 2011 has registered a 6.1% drop year on year, according to the country's National Statistical Institute.
As compared with the second quarter of 2011, the average decrease of the Bulgarian dwellings'market prices was 0.8%, according to the statistical data released on Friday.
On a quarterly basis, a total of 20 Bulgarian district centers saw a decrease in their dwelling market prices, the most significant being in the Southeastern towns of Smolyan (by 4.7 %) and Yambol (by 4.2%), as well as the Northwestern town of Pleven (by 3.7%).
During the third quarter of 2011, the highest average market prices were registered in the Black Sea city of Varna - 1 493.33 BGN/sq. m, followed by Sofia - 1 456.48 BGN/sq. m and another Black Sea city, Burgas - 1 184.41 BGN/sq. m.
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When you have jobs and infrastructure development through investment in the industrial sector the Real Estate market improves.
Let us not forget the sensitive environment of Bulgarian Fauna and Flora.
This we call a blessing that must be preserved on a positive sense since ecological symbiosis is the rule of our Creator and the Laws of Creation.
Jobs, habitation, infrastrucure and industrialization are elements of Creation and Economics.
"From there, things will not "get better". Ever. A bubble is a bubble, and once it bursts, it
will never re-inflate. It's busted, baby. Welcome to capitalism."
Not entirely true - bubbles do reflate now and again, especially in property. Yes - the property market will stabilise and then founder for a bit. But it will return, it always does. It all depends on if you can afford to hold onto your property for the long term. Even if you can you need to work out if selling for a loss now and reinvesting will make a better long term bet - and it probably will if you make the right bet - and that's capitalism for you!!
I hope that Bulgarians can understand that the direction of real estate prices is in
a permanent downturn. The increase and bubble was caused by huge foreign speculative investments beginning in 2006, peaking in 2007, and continuing until 2009.
As things stand,
25% of the business office space in Sofia is standing empty. They will never be occupied.
Residential construction is standing all over the place unfinished and the owners bankrupt.
Overbuilding and desecration on the Black Sea and other resort areas is unthinkable.
Every single mall and large retail establishment in Bulgaria is losing money and for sale.
Most of the banks, who have heavily lent to the real estate bubble, are insolvent, holding
phony loans as assets. These loans will never be repaid.
These facts are true regardless of any contrary opinions you may hold or you may hear.
It just doesn't matter what you think. Those are the facts.
There are some who (foolishly) believe that holding on to their real estate investments
is a good idea as "things will get better". Things will stabilize at prices 15-20% lower
From there, things will not "get better". Ever. A bubble is a bubble, and once it bursts, it
will never re-inflate. It's busted, baby. Welcome to capitalism.