So my Bulgarian home is worth the same as it was when I first bought it in 2005. I don’t care how much my home is worth it is a home and that’s it. Whether its worth a few thousand pounds or 1 million is it still a place where I will live for the rest of my life. I didn't it as an investment and I no intention of selling for profit. That’s how most Bulgarians feel about their home, but that is changing. The value of the home is incidental here and only seen as a profiteering asset from western eyes. Pity the whole real estate industry is built on the assumption that property is bought for profit.
The number of real estate deals in Bulgaria has declined substantially in the first half of 2009 to the extent that the market is back to the 2005 before it experienced a steep growth.
The number of real estate purchases dropped by 42% for all of Bulgaria, and by 58% for the capital Sofia in the first six months of 2009 compared to the same period of 2008, according to data of the Raiffeisen Real Estate company.
The conclusions of the company are based on official data from the National Statistical Institute, and a survey of real estate firms and entrepreneurs.
The trends that started in the third quarter of 2008 have continued to deepen in the first half of 2009, according to Ani Angelova, Manager of Raiffeisen Real Estate, and CEO of Raiffeisenbank Bulgaria, as quoted by BTA.
Most of the real estate buyers in Bulgaria are in a waiting position expecting a continuing decline of prices, and only the investors with a high-risk profile have remained active on the properties market.
According to Raiffeisen Real Estate, no large-scale property investment deals have taken place in Bulgaria since the beginning of 2009, except for the planned expansion of the large retail chain stores.
The time for selecting properties and negotiating deals has increased from an average of 20 days to an average of 60 days, and almost always involves achieving a substantial discount.