High demand for new build apartments in Bulgarian cities forces many to buy older property stock.

Over the past six months the average price of residential property in the larger Bulgarian cities have exceeded the predictions of 1000lv per sqm according to a report by the National Statistical Institute (NSI).

The increase was not solely due to price growth in new construction but also from the price of old apartments going up as well, Kapital weekly reported.

Real estate agency Address said that prices of older buildings in large towns of Bulgaria had increased by between seven to eight per cent and in Bourgas the increase was higher than 30 per cent.

Address operational manager Svetoslava Georgieva said that the number of apartments ready for sale on the market had decreased while demand remained high, which had led to a price hike.

The price of old apartments in Sofia’s residential districts of Mladost and Lyulin were nearly €33,000 six months ago and current prices are nearly €44,000, a 15 per cent increase.

The main factors influencing the pricing of old apartments was that the demand for new apartments was outstripping the supply of new ones. Most new apartments were taken quickly, but many needed some time before they could be occupied. Other new apartments had been bought for speculation and were not yet on the market.

Buying older apartments was the only alternative for people wanting to move immediately. An increasing number of people were looking for apartments for personal use rather than investment, so older buildings remained popular, Georgieva said.

2007-07-31  Source: Sofia Echo