Timid growth of the real estate market in Q1 2012

The real estate market in Bulgaria reported a timid growth in the first three months of the year, industry experts told Klassa. Relocation is still the main driving force of transactions. In Q1 2012, this type of contracts increased by some 7-8%, compared to Q4 2011, Address Real Estate Agency reported. According to a report of the company, bank promotions also stirred up at the beginning of the spring. Georgi Pavlov, Executive Director of Address, commented that emerging optimism on the property market since the beginning of 2012 is indisputable. Konstantin Bobchev, Managing Partner at Home for You, told Klassa that, surprisingly, the beginning of the year started very well. The market has stirred up but it is not clear what caused it. Polina Stoikova, Chief Operating Officer at Bulgarian Properties, commented that, during the first three months of the year, the volume of transactions stabilised at the levels of last year. The average price at which contracts were concluded was about €735 per sq m, two-bedroom and one-bedroom flats being most in demand.

Experts are unanimous in their expectations for the end of the year, namely that the market will retain the levels of 2011 or will even report a slight improvement. "My expectations for 2012 are not rosy, but trade in real estate in Sofia is not completely dead, banks extend loans and the cause is not a lost one," said Konstantin Bobchev. According to Polina Stoikova, we can hardly speak of growth until the end of the year but the positive news is that there is no market turmoil against the background of the crisis in the EU.

The report of Address Real Estate Agency shows that the most preferred housing district throughout 2011 was Nadezhda, followed by Lyulin and Mladost. Two-bedroom flats are still most in demand. Transactions for these have accounted for about half of all deals for a whole year now. The company's experts, however, reported another trend as well, related to the recent tragic accidents in Students' City in Sofia. According to the data, many clients inquire about flats in neighbouring residential districts such as Iztok, Vitosha, Darvenitsa and parts of Mladost. Kaloyan Bogdanov, Marketing Manager at Address, said that many parents of students living in Students' City have decided to look for alternative lodgings in neighbouring residential areas because they believe that Students' City is not an appropriate place for their children to be living in.

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