According to data of “Bulgarian Properties” based on the number of concluded deals in the entire country, the rural estates in Bulgaria are 53% cheaper in 2009 compared to the same period in 2008.

For the first time in years, the estate prices have been lowering since the beginning of 2009, says Polina Stoikova – chief executive of the company.

Up until last year, rural estates have been steadily growing in price, marking a 24% growth in 2008 compared to 2007, even though the number of deals has been almost halved.

The analysis of “Bulgarian Properties” for 2009 shows that by the end of March 2009, the decrease of the average prices of rural estates is 40% compared to the average level for 2008. The decrease of sales continued until the end of April, reaching 55% by the end of the same period in 2008.

May 2009 lead to a shift in the estate market due to the cheap prices, which reflected on the rural estate sector as well. Between May and August, the average prices of real estate deals continued to decrease and reached a 33% decrease compared to the first quarter of the year. The number of deals increased by 35%. This data shows the direct connection between the drop of prices and the increasing interest among potential buyers.

For the period January – August 2009, the number of rural estate sales is 37% lower compared to the same period in 2008.

The average prices of sold rural estates decreased from 30 800 EUR to 19 130 EUR by the end of March 2009, followed by another decrease to 17 650 EUR by the end of April and another by the end of August, coming down to 11 950 EUR.

This drop of prices renewed the interest of British buyers of cheap rural estates. The share of these buyers among the foreign clients of “Bulgarian Properties” grew by 10% during the summer, compared to early 2009. Many Bulgarians and other foreigners are also interested in the purchase of rural estates.

The decrease of average prices for sold rural estates is different in the various regions of Bulgaria. The biggest decrease is registered in the villages around Sofia, Varna, Burgas, Plovdiv, Stara Zagora, Yambol and Kardjali – some of the most attractive regions that were growing more and more expensive over the years. Only the rural estates near Vidin and Veliko Tarnovo keep their average prices from 2008.

The statistic according to regions:

Average prices of realized deals with rural estates in Bulgaria in the period 5.2009 – 8.2009:

• Villages near Sofia – 18 000 EUR, average price in 2008 – 29 500 EUR, 39% decrease

• Municipality of Varna – 15 000 EUR with an average price of 31 000 EUR in 2008, 52% decrease

• Municipality of Burgas – 18 500 EUR with an average price of 28 000 EUR in 2008, 34% decrease

• Municipality of Veliko Tarnovo – 14 200 EUR – similar prices as 2008

• Municipality of Yambol – 6 500 EUR with an average price of 16 300 EUR in 2008, 60% decrease

• Municipality of Montana – 3 900 EUR with an average price of 7 850 EUR in 2008, 50% decrease

• Municipality of Vidin – 12 400 EUR – similar prices as 2008

• Municipality of Stara Zagora – 5 400 EUR with an average price of 15 000 EUR in 2008, 64% decrease

• Municipality of Plovdiv – 10 500 EUR with an average price of 17 300 EUR in 2008, 39% decrease

• Municipality of Kardjali – 11 300 EUR with an average price of 24 000 EUR in 2008, 53% decrease

Average prices and price shifts compared to previous years:

• 2005 – 15 450 EUR +37%

• 2006 – 18 510 EUR +20%

• 2007 – 24 800 EUR +34%

• 2008 – 30 800 EUR +24%

• 2009 – 14 380 EUR – 53% until August 2009

Currently, owners are still actively dropping the prices of their real estates. This process is expected to continue over the next few months and is clearly evident in the weekly bulletins if “Bulgarian Properties”. The number of real estates with lowered prices is almost equal to the number of new offers and sometimes even surpasses them. Price drops go as far as 80%.