Colliers' Residential and Holiday Homes Market Overview for Bulgaria Published

Ivan Vazov area more expensive than Lozenetz

Sales prices on the residential market in Sofia have stabilized during the first half of 2006. This is just one of the findings in Colliers’ latest semiannual Residential Market Overview, which has just been published. The prices increased only marginally compared to previous years. The sector, though, remains the most dynamic segment in the real estate market with supply exceeding demand.

The Ivan Vazov neighborhood is emerging as the second most expensive location in Sofia after constant favorite Doctor’s Garden. The average asking prices in Doctor’s Garden reached EUR 1,700/sqm in the first 6 months of 2006, followed by the Ivan Vazov area with EUR 1,325/sqm and Lozenetz with EUR 980/sqm.

The middle segment of the market is the most active, with two-bedroom apartments in highest demand. Buyers continues to prefer properties that are completed or in the final stage of completion. Yields ranged between 7% and 10% for single deals of residential properties in the first half of 2006.

The majority of demand for Bulgarian property currently originates from investors in overseas property from Great Britain and Ireland.

First holiday homes market overview published

Colliers International has just published the first market overview of the Bulgarian holiday homes market. The report documents the significant development in the past years in both mountain and coastal resort areas.

The supply of holiday homes in the mountain region, with Bansko as the principal location, amounted to more than 12,000 units by the end of June 2006. This represents an amazing 152% increase from June 2005 when the supply was just under 5,000 units. The mountain resort developments range in size from 10 to 400 units, often with a wide range of on-site facilities.

The coastal resorts saw an increase in supply of over 6,000 units (37%) from June 2005 to June 2006. More than 22,500 units are currently in various stages of development, from off-plan projects to completed properties.

Despite the fact that supply has outgrown demand, prices of holiday homes remain stable. The highest coastal sales price range is registered in St. Vlas where prices vary between EUR 600/sqm and EUR 1,850/sqm. The highest mountain resort prices are found in Bansko, where apartments are sold above EUR 1,600/sqm.

Bulgaria featured second in the recent Knight Frank Global House Price Index with annualised growth for Q2 2006 running at 20.5%.

The complete report is available at www.colliers.com/markets/bulgaria/marketreports.

Photo: podoboq.