Michelle Tabakova

Activating of the property market in Bulgarian smaller towns

The real estate market in 2006 has been characterized with dynamics and smooth rise of the prices.

The height of the property deals for the whole country is approx. 15 % as they are 280 000 in number.

The activity of the property market in smaller county centers was characteristic feature for the past 2006.It is sensibly noticed that the laying of the investors’ interest has been directed towards them, as an year ago they went behind in new development offering. However during 2006 exactly new developments and mortgages contributed to dynamics in the market in these regions. In contrast to big county centers where parcels are run out, in smaller towns there are still plots for sale.

Many of these areas stand together in prices with larger towns. Stara Zagora town is the city with greatest raise in property prices from all smaller county centers – 30.33%. Here the average price per sq. m. in the past year reached 486.17 EUR, and that in Plovdiv – 499.89 EUR.

The extension of the  period for completing a deal is one of the considerable differences in the property market. This fact can be explained with greater offering of properties in comparison with 2005.The criteria for a luxurious residence has been changed too, which value before could difficultly go beyond 150 000 EUR while now the limit is 300 000 EUR.

Another important factor that influenced much during  last  months is Bulgaria joining the EU. Although in practice this event cannot change the property market, people have the psychological adjustment that their property will grow more expensive. We became witnesses of  withdrawal of offers and great interest from buyers ,right before 1-st of January. The general price rise of residences in the country is 12.07%.The average price per sq. m. is 624,83EUR towards 557,53 EUR per sq. m. in 2005.

The real estate deals represent larger part of the sale-purchases in the country. The most recently enquired property is the two-bedroom apartment, though the offering of qualified areas of that class is not big and this fact reflected rise with about 15 %.

The biggest group of buyers in last years are people at the age between 26 and 45 years old.

The agricultural land market marks exhilaration in 2006 though on the background of the rest of the segments, trade is restricted . According to Ministry of Agriculture over 1 million decares have changed their ownership during last year while in 2005 they are 600 000 decares.

Running out of the terrains for building of closed type complexes, office buildings, commercial properties more and more increases the attractiveness of the agricultural land. The aim of the main deals, made with agricultural land,  are for building purposes after change of the use. t present the fractured properties influence the development of the land market

On all aspects of investing in Bulgarian properties visit our website for a huge resource of articles and  the largest and most diverse selection of quality properties in Bulgaria at  www.ICBproperties.com

Article Tags: Property Market, Smaller Towns, County Centers

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