The prices of real estate located in immediate proximity to the Black Sea have dropped by 15 to 30 per cent, while the prices of real estate in the interior of the coastal area have dived by as much as 60 to 70 per cent, Valeri Vassilev of Imoti Bulgaria OOD told a news conference Tuesday.
According to Vassilev, finished apartments are already being purchased at prices as low as 390 euro/sq m and apartments in the Sunny Beach Resort are sold at 20,000 and 30,000 euro, i.e. below their cost.
In Sofia, Plovdiv, Varna and Bourgas, real estate prices have dropped by 20 to 30 per cent. According to Vesselina Ivanova of Five Star Investments Ltd., Russia and some of the former Soviet republics continue to be the major real estate investors in Bulgaria. Ivanova sees a significant pick-up of the real estate market in the last month and a half. She would speak of a restructuring rather than of a crisis on the market.
High-quality luxury real estate prices remain undiminished, while low-quality properties already sell at their realistic price, which is a positive development.
Russians' demand is mainly for luxury beach-side apartments in the northern part of the Black Sea coast, at prices starting from 250,000 euro. The interest in mountain resort properties has waned. Investors are interested in land tracts suitable for future construction and office space priced at 2,000 to 3,000 euro/sq m. Ready-made businesses are offered for sale as well.