The fearsome 3 255 000 euro have been paid for a miniature terrain at a top spot in Sofia – in front of the National opera. The 315 sq. m. terrain is about as big as two 4-room apartments. The apartment is shaped like a triangle and is located on the corner of “Dondukov” blvd. and the small “Stara planina” street.

The price of 10 330 euro per square meter breaks the record for the most expensive terrain in Sofia. Up to now, the first place was taken by a terrain on “Todor Alexandrov” blvd. in front of the headquarters of “LUKoil – Bulgaria”, purchased by a Greek company for 8355 euro/sq. m. The third spot was taken by a terrain on “Maria Luiza” blvd., bought by a Greek businessman for 6365 euro/sq. m.

The golden terrain near the Opera was on the real estate market for a price between 4 and 6 million euro in the various real estate agencies. For a 315 sq. m. terrain, the offer was exceedingly steep – between 12 700 and 19 000 euro per square meter. Such deals are a rarity even in famous cities like London and Paris. The business logic dictates that a price can exceed 10 000 euro per sq. m. if the terrain will be later used for a skyscraper, or has a unique location.

Sources of the Bulgarian newspaper “Trud” announced that representatives of the Greek business were interested in the real estate on “Dondukov” blvd. They were ready to provide 3 million euro, but someone gave more. That person was the Bulgarian businessman Svetoslav Atanasov, owner of various hotels, restaurants and bars. The popular night club BIAD is the crown achievement of the businessman.

Atanasov has shares in over 10 companies, and owns the restaurant chain “Pri Yafata”, the restaurant “Vitosha”, the bars “Jim Beam”, “Orient 33″ and “Fire” in Sofia, the “Akord” hotel in the district “Hadji Dimitar”.

The former owner of the terrain is a businessman from Burgas who remained anonymous. The real estate has been purchased with a credit from the Bulgarian-American credit bank. The terrain near the Opera was previously an old house with a coffee shop on the ground floor. Now the building is torn down, and will soon be replaced by a luxurious business building.

Collapse in Sunny beach, 9750 for a studio apartment

The real estates in the Sunny beach resort are given as a prime example of the price collapse in Bulgaria. The local branch of the International federation for real estates alarmed for deals below the cost price. “In just a year, the prices of vacation apartments on the front line of the resort dropped by 15-30%. The apartments further removed from the coast are now 60-70% cheaper”, announced Valeri Vasilev from “Real Estates Bulgaria”.

“There are offers below the cost price, but that doesn’t mean that the investors are losing from the project. They’ve sold some of their apartments at higher costs some time ago”, explained Vasilev. An internet research shows that a studio apartment (25 square meters) at the resort front line of the Sunny beach costs 9750 EUR. An apartment (57 sq. m.) costs 22 750 EUR, or 399 EUR per square meter. The estate is in the western part of the resort.

Another case of a sale below the cost price is a large hotel (18 000 sq. m.) in the Sunny beach. The hotel was sold for 390 EUR/sq. m., or 7 million EUR total. The prices at the Northern Black Sea coast are more stable, but there are still instances of abnormally low prices – 390 EUR/sq. m. for an apartment at “Byalata laguna” (the White lagoon).

“Over the next few months, the prices of real estates in larger cities will stabilize and the drop of prices will come to an end”, prognosticated Valentin Saikov from the International federation for real estates. His motives: there are fewer new constructions, owners withdraw their offers and a balance between supply and demand is coming around. According to Saikov, buyers in Sofia give between 500 and 600 euro for a square meter in a regular apartment and 1200 euro per square meter in a luxurious one.