Slowing activity on the domestic property market

The activity on the property market in Bulgaria slowed down in the first half of 2012, compared to the same period of last year, read an analysis of Yavlena real estate agency. Company data shows that the share of transactions conducted in the five largest cities (Sofia, Plovdiv, Varna, Burgas and Stara Zagora) in the total volume of real estate deals has decreased and the decline can hardly be compensated by the stir-up on the property markets in smaller towns. According to statistics, during the first six months of the year, property deals in Sofia were 25% less than in the same period of last year and more than 58% less than in the peak year 2008.

The volume of real estate deals in the other four big towns fell by some 10-16% and the decline for the entire country was 12% on an annual basis. Mortgage transactions also registered a steep decline, the Yavlena agency specified. Transactions financed by mortgage credits are mainly closed in the five largest cities, specified the analysis of the real estate agency.

The share of real estate transactions financed with mortgage loans fell to 14.45% during the first six months of the year, compared to 17.48% for the same period of 2011. In the first half of 2008 – the peak year for the domestic property market – the share of such deals was almost 33%. According to experts, however, the decline on the real estate market concerns primarily the segments of holiday homes, offices, commercial, production and warehouse premises.

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