Only 10% of the real estate purchases made in 2009 have been financed by mortgage.
BTV’s statistics show a total collapse of the market.
In the beginning of this year BTV (Bulgaria’s most popular television channel) made a report on the real estate market in Bulgaria. According their data, a mere 5-10% of the real estate purchases made in 2009 have been financed by mortgage. For comparison, in 2008 this percentage was 60-65%.
Another comparison with 2008 can be made in the number of real estate deals. In the first six months of 2009, a total of 87,459 real estate deals have been completed in Bulgaria, while in the same period of 2008 the number was 134,884, meaning 35.16% decrease.
Foreign investments in Bulgarian real estate, for the first nine months of 2009 come up to €433 mil. The same period of 2008 brought in €1,081 mil. The decrease here is 60%.
Building permissions issued between January and September 2009 are 34% less, compared with the number for the same period of 2008.
One-bedroom apartments remain the most sought after commodity on the market. Their size is usually preferred to be between 60 and 70 m2 (650 – 750 ft2). The most important factor for the choice remains the price of the property.
According to the data in the report, prices of real estate in Bulgaria have dropped by about 16%, only in the first half of 2009. Rent prices have dropped even more – about 19%. The majority of the real estate purchases have been concluded after negotiations on the price and its reduction with about 20%.
Prices of residential properties in the country’s major cities have dropped down with about 32% on annual basis. The major group of buyers now are Bulgarians themselves, taking over from foreign investors. In 2009 92% of the real estate buyers have been Bulgarians.
After these dramatic figures, we, the Total Developments team, can only say one thing – It is highly probable that there will never be a better time to buy in Bulgaria!