Housing prices to freeze in 2013

“Housing prices in Bulgaria will be stagnant next year,” said Lachezar Iskrov, Vice Chairman of the Board of the National Real Estate Association. “They will remain at the current levels for the respective type of real estate and its location. For instance, the average level for Sofia is between €550 - 1,000 per sq m,” said the expert.

“On an annual basis, the average decline in housing prices this year is within 5%, but the decline was greater for some properties due to the pressure of the financial crisis and the fact that many owners failed to service their mortgage loans and were forced to sell at lower prices,” commented Iskrov.

“The declining prices this year were also a result of the decrease in the number of deals in real estate. Unlike the market situation before the crisis, the budget of Bulgarians for the purchase of a home is very tight and demand this year was within €45,000 - 60,000 on average and in smaller towns the most sought after properties were those priced between €30 000 - 40 000,” specified Iskrov. The largest number of deals in 2012 was within this price range. By comparison, in the pre-crisis years, most of the transactions were within the range of €60,000 - 85,000.

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