Housing prices in Bulgaria dropped one to three per cent in 2012 – report

Prices of residential property decreased by one to three per cent in 2012, public broadcaster Bulgarian National Television said on January 30 2013, quoting what it described as a major player in the Bulgarian property market.

According to the company, housing transactions in the past 12 months grew by about 10 per cent. The annual turnover of the housing market in the country is 3.5 billion leva.

In 2014, prices of housing will not fall further, but could even slightly increase, analysts said, according to the report.

Buyers increasingly were interested in factors such as electricity costs, heating and energy efficiency, the report said.

In Sofia, a new trend was increased interest in homes outside the centre of the Bulgarian capital city, according to the report.

Factors that buyers saw as decisive included the quality of the roads, and public transport.

The report said that in 2012, housing was twice more affordable than five to six years ago. At that point in the past, the monthly payment on a loan was equal to an average salary but now was the equivalent of half such a salary.

At the same time, the report said, in 2006 the average salary in Bulgaria was half what it is today. In turn, however, the statistic was affected by increased unemployment which meant that the average salary was higher because those who had kept their jobs were above the previous average pay.

(Illustration: Daniel Wildman)

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The Sofia Globe staff

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