Bulgarian real estate prices in over 20 cities and towns have seen a decline in value of up to 28% in the third quarter of 2009, compared with the same period the previous year.

About 21 000 residential units were completed and became available on the market in 2008. Another 15 000 new units were constructed and put on the market in 2009, according to the Bulgarian National Statistical Institute (NSI).

Real estate agents based in Bulgaria report that there is a shortage of cash available to the local market, and that foreign investors, who have been responsible for a large proportion of the recent construction boom, are not as active at the moment.

Foreign investment in Bulgarian real estate between 2006 and 2008 accounted for more than EUR 2 B compared with EUR 300 M in the previous three years.

However, there are signs that the market may be beginning to move. Real estate companies are reporting a small increase in property inquiries and in completed deals.

A spokesperson for Address Real Estate has estimated that the overall decrease in transactions for 2009 will amount to about 35% compared with 2008. Although the bottom has almost been reached, prices are expected to fall even further in 2010.

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