Bulgaria Residential Real Estate Prices Up by Nearly 30% y/y - NSI

Business | January 23, 2008, Wednesday // 00:00| Views: | Comments: 4
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Gains in prices of residential real estate in Bulgaria's 28 biggest cities and towns averaged 28,9 % in 2007 over the previous year, data of the country's National Statistics Institute (NSI) showed on Wednesday.

The average price paid for residential properties last year in the areas covered by the NSI survey was BGN 1091,24/m2.

Capital Sofia, which boasts the highest salaries in the country, remains the nation's most expensive housing market with an average price of BGN 1813,17/m2, a 35,1% increase over the previous year.

The port city of Varna came in second, commanding an average price of BGN 1762,63/m2, up by 33,9% over last year. Third ranked the other major port of Burgas with average residential property prices at BGN 1442,08/m2, posting a 17,5% surge over the previous year.

The residential real estate in Sofia district bottomed the ranking with prices as low as BGN 488,14/m2, marking an increase by 18,6% compared to the previous year.
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» To the forumComments (4)
furian - 24 Jan 2008 // 03:34:54

Calm down, there is no reason to be worried. Once again we see "public" data based on "informations" from realestate agencies. The figures on a sales contract are secret in BG and protected by law. There is absolutely no transparancy or announcement of ownership registrations- in BG you need a courts order or police investigation to release someone private adress.
The realestate agencies in Bulgaria are not licensed and there is no legal declaration of professional ethics. So whatever numbers or information you get from a realestate agent, there is a kind of legal immunity so you cannot sue him if the information and numbers are deliberately false and misleading.

So, in short, these "statistics" from NSI are totally unreliable and fake, as are the numbers from the agencies. If you are in the market for property, you better do some practical fieldwork and walk from door to door and ask directly for prices.
There is a huge overproduction of properties in Bulgaria and foreigners have turned their eyes to Turkey and Montenegro instead. No wonder, as the properties offered for sale in Bulgaria are far below acceptable quality standards.
Who on earth is interested in investing in a property of low quality, overprized and you get non existent infrastructure, corruption, organized crime as part of the deal?
The number of buyers have been reduced dramatically the last year and the prices are realistically in free fall. It still happens that someone is buying an appartment in Sofia with a ridiculous price or rent a shop in central Sofia without having any customers.
But money from Bulgarias increasing black sector needs to be whitewashed, and Bulgaria has now position as number one producer of designer/atificial drugs in Europe. And Heroin from Middle East is flowing into and through Bulgaria with an estimated capasity of 800 kilo refined product pr.day!
There is no healthy property market or national economy, but increasing surplus from organized crime, corruption and fraud. And that is where the money is coming from to buy fancy cars and houses in Bulgaria. My advice: buy directly from the owner of a property and do not involve any agency,officials, lawyers or local Mayors. In my opinion there is no private house/property in Bulgaria that is worth more than 70-80 000 euros and in the countryside you can get an excellent(for the money) property- land and house for 20 000 BNG! So do not panic the numbers are old tricks from politicians and estateagencies.

CTAPEEM - 24 Jan 2008 // 00:36:13

God damit! Now, how am I supposed to retire in a small house in Kiten? Oh, well... I guess it'll be cheaper to get me a small beach shack here in the states...

CJB - 23 Jan 2008 // 21:07:22

Possibly because 50% of the sales price goes undeclared on any contract in order to avoid taxes?

Robin - 23 Jan 2008 // 20:28:59

How come this prices/m2 are roughly half of what the real estates agencies claim in their figures???

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