The crisis is not passed and rural properties

For the first time in years, rural property prices began to decline at the beginning of 2009, shows an analysis of Bulgarian Properties. Rural properties have maintained stable growth rate of prices as in 2008 their average value increased by 24% compared to 2007 despite a decrease in sales volumes by 43.5% over the period. Analysis of one of the leading real estate agencies in Bulgaria for 2009 show that even at the end of March 2009 the decline in average prices of rural properties is 40% compared to average levels for 2008, a decline in sales volumes continue until the end of April and reached 55 percent over the same period of 2008, May 2009-a lead change in the property market due to activation and reduced prices, and this is reflected in the segment of rural properties. From May to late August, average realized prices of real estate continued to decline and reached a decline of 33% over the period January-April 2009-a, the volume of transactions rose by 35%. These data suggest a direct link between declining prices and increasing interest and the realization of purchases by buyers. From January to August 2009 the decline in sales of rural properties is 37% over the same period of 2008, average sales prices of rural properties fell from 30 800 euro in 2008 to 19 130 euro to the end of March 2009-a, followed by a decline to 17 650 euro to the end of April and during May-August 2009, and the average realized prices of rural property transactions are 11 950 euros, a drop of 61.2 percent compared to average prices in 2008 is precisely this interest back of British buyers of cheap rural properties. The share of these buyers among foreign clients of Bulgarian Properties surged by 10 percent during the summer months than in the first months of 2009, this time, however, not only Britons are interested in the purchase of rural properties, and many Bulgarians, as well as representatives of various nationalities from Europe and the world. The decline in average sales levels of rural properties is different for different regions of the country. The largest decline marked the villages around Sofia, Varna, Burgas, Plovdiv, Stara Zagora, Yambol and Kardzhali – these are the most attractive regions, where prices have risen significantly in recent years, a few months ago, sellers were not willing to reduce its bid levels. Only rural property around Veliko Tarnovo Vidin and retain its average level since 2008. As to them the process of price increases began to slow down the pace earlier than other regions of the country. Currently, sellers are still active bids to reduce levels of their properties, this process will continue over the next few months to reach market levels. The number of properties with reduced prices over the past few weeks is almost equal to the number of new deals, sometimes even exceed it, but the reductions reach 80%.

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Finance