The price of luxury property in Bulgaria has fallen by 40% since the onset of the global economic downturn while the average residential real estate prices are down 28% year on year, according to the latest figures to be published.
The number of luxury property owners putting their houses on the market has doubled, says a report from real estate agency Unique Estates. But buyers are no longer interested in real estate priced at the top of the market.
‘At the start of the year the volume of deals was similar to last year’s but after March the trend drastically changed. A luxury home in Sofia prices at one million euros is now perceived as very expensive,’ said managing director Vessela Ilieva.
Since the beginning of the recession the highest price paid for a luxury home in Bulgaria was € 3,000 a square meter whereas at the height of the property boom prices were double that. The record price was €6,000 per square meter for an apartment on Sofia’s Narodno Subranie Square in 2007.
Most potential buyers are now opting for luxury apartments in the €120,000 to €150,000 price range or a family home at around €500,000, Ilieva added.
Meanwhile, the latest figures from the National Statistical Institute show an average year on year price fall of 28%. There is no sign of the downward trend slowing as average market prices in Bulgaria dropped by 5% in the third quarter of 2009.