Numerous reports on the real estate business in Bulgaria cited by Property Wire, state that the number of sold real estates in Bulgaria for the first half of 2009 is drastically dropping. The number of newly constructed estates is also significantly lower.

The deals with real estates are 35% lower on a yearly basis, according to data from the Registry Agency. The crisis in the business affects all major cities in Bulgaria, including the Black Sea coast and the popular resorts. The collapse in Borovets for example, reaches 50%. The report of the agency also notes a significant decrease in the construction investment, mostly because of the international economic crisis.

The report of the real estate department of Raiffeisen Bank in Bulgaria reports a 42% average decrease of sales, with a peak of 58% in the capital Sofia. The negative tendencies on the Bulgarian estate market were first felt in the third quarter of 2008 and are continuing into the first half of 2009. The potential clients are still waiting. Only buyers that favor risk purchases or have serious investment intentions are still on the market.

According to the National association of the Bulgarian municipalities, the drop in the real estate deals is 50%. The data from the municipality of Sofia shows that purchases of homes shrunk to the equivalent of 30 million leva, which pales in comparison to the deals for 59 million leva during the same period in 2008. The economic crisis also brought about a wave of overdue mortgages. Their percentage has increased with 36,6% on a yearly basis, while the crediting for real estate purchases shrunk nearly three times.

Experts expect the number of newly constructed estates to decrease with another 25% by the end of the year, mostly due to the low demand. According to data from the National statistics institute, there are only 3 897 new real estates on the market during the first quarter of 2009, compared to 20 924 for the entire 2008. The construction permissions given during the first half of the year are also 50% fewer.