Bulgaria's home prices down 1.2% y/y in Q4 2013

By bne IntelliNews January 24, 2014

Housing prices in Bulgaria fell 1.2% y/y in the fourth quarter of 2013 as the average home price declined to BGN 864.5/sqm (EUR 442/sqm), according to the statistics bureau's 28-district index.

Property prices decreased by 1.8% on average in 2013. In Q4 alone, prices slid by 0.1% from the previous quarter.

House prices have fallen in each quarter since the beginning of 2009 when a five-year boom in the property market ended.

Prices decreased in 23 districts in the fourth quarter 2013. The value of homes in the Vratsa district recorded the biggest drop (-7.3% y/y), followed by lower housing prices in Vidin (-7% y/y). Both of these districts are in northwestern Bulgaria.

Home prices in the district of Bulgaria's capital Sofia remained the highest at BGN 1,457/sqm (up 1.1% y/y). Prices in the seaside Varna district ranked the second highest at BGN 1,375/sqm (down 3.5% y/y).

The value of Bulgaria's market for newly-extended mortgage loans grew 4% to BGN 8.8bn (EUR 4.5bn) in 2013, according to data from local credit consulting company Credit Center.

Credit Center estimated that a total of 160,000 mortgages were approved in 2013 with an average mortgage size of EUR 33,165. Significant portion of all mortgages (70%) was denominated in the local currency - Bulgarian lev.

Lending data from the central bank has shown that the value of outstanding mortgages in Bulgaria fell 0.4% y/y at end-November 2013. Meanwhile, the share of bad and restructured mortgages increased to 22% of all home loans.

Related Articles

Former Bulgarian energy minister charged in abuse of office case

The anti-corruption unit of Bulgaria’s prosecution service has formally indicted former energy minister Rumen Ovcharov in an abuse of office case ... more

South Africa’s NEPI acquires shopping malls in Hungary, Bulgaria for €528mn

South African fund NEPI Rockastle said it has acquired two new shopping centres – in Hungary and Bulgaria – for a combined €528mn. The fund, which purchased another shopping centre in ... more

CEZ’s attempts to sell Bulgarian assets reportedly suspended

The sale procedure initiated by CEZ for its assets in Bulgaria has been suspended, Bulgaria’s Energy Minister Temenujka Petkova said ... more