Bulgarian property prices show lowest drop since the beginning of the crisis
According to data from the Bulgarian National Statistical Institute (BNSI) about prices of apartments in regional cities in 1Q 2012 they have remained similar to those in the last quarter of 2011.
Polina Stoykova, Chief Operations Manager of Bulgarian Properties, said “The average nominal decrease of prices in the country on a quarterly basis is 0.4% and this is the smallest drop in home prices in Bulgaria since the beginning of the crisis.”
The biggest price drop is registered in the towns of Vratsa (-4.42%) and Vidin (-3.23%). Home prices in some of the regional cities have increased slightly in the last quarter, like in Sofia (+0.83%), Blagoevgrad (+2.8%), Pleven (+2.15%) and Rousse (+2.46%). There are also towns where home prices have remained the same. This data is the result of an ongoing slowdown in residential property price decreases as quarterly price drops are now within 5%.
On an annual basis, compared to the 1st quarter of 2011, prices of apartments have decreased by an average of -4.3%. The real drop in average apartment prices after inflation (calculated with the Harmonized Index of Consumer Prices HICP) is 1.4% compared to the previous quarter and 6% year-on-year (compared to the same quarter in 2011).
According to BNSI data the average price of an apartment in Bulgaria’s regional cities in the first quarter of 2012 is 452 Euro per sq.m. (only 2 Euro less compared to the previous quarter) and prices in the capital Sofia are the highest among the big cities. The prices at which apartments in the big cities were sold in the first three months of 2012 are as follows:
In the 1st quarter of 2012, prices of apartments in Sofia have increased by 0.83% compared to the previous quarter, as the drop year-on-year is 2.1%. After inflation prices of apartments in Sofia have dropped by 0.17% compared to the previous quarter and by 3.9 % compared to the same period last year.
The accumulated nominal price drop of apartments in the regional cities in the last few years since the beginning of the crisis is 37.68%, as in Sofia the accumulated drop is 40.67%. The accumulated real decrease in prices since the beginning of the crisis is 42.8% on average for the country and 45.6% for Sofia.
The detailed data for of the changes in apartment prices in the big cities around the country in 1Q 2012 is as follows:
Nominal and real change of prices compared to the previous quarter:
Nominal and real change of prices compared to the same quarter of the previous year
Written by Polina Stoykova, Chief Operations Manager of Bulgarian Properties.
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