The rising trend in Bulgarian property prices started at the end of 2003 and will continue for at least another three years, she said.

Varna may be the city with the most expensive real estate but it is not the site of the highest incomes and living standards in Bulgaria, according to some local realtors.

Summer rates notwithstanding, rents in Varna are lower than in the capital. Considering the rent/sale price ratio and sales/personal annual income correlation for real estate in the Bulgarian market, some specialists now expect a fall in prices. Such a trend may only affect certain sectors - either those that have either seen a sharp price increase or low quality units.

The property market will probably experience a certain price differentiation and segmentation in 2008, according to experts. High quality, well located real estate will rise in price whereas poorly constructed developments will see a downward movement.

FOROS Real Estate agency registered a 26.6 per cent increase of pre-fabs in Varna for the first nine months of the year, notably in the so-called Generals region, the Sports Hall, the Technical Schools and the Izgrev neighbourhood.

Pre-fab panel apartments will be the first to acquire more realistic prices next year, meaning that they are expected to lose some 12-13 per cent in value.

The experts said that the market has started to mature as clients have become more discerning. They noted that they register with agencies and receive professional advice from lawyers and builders before they buy. They implied that similar properties might maintain their price level or even increase if they receive adequate management and remodeling.

Certain apartments in the Mladost neighbourhood may receive a price boost due to the construction of several malls nearby. The sports-amusement complex project, to be named Mall Varna (located at the junction of Vladislav Varnenchik and Hristo Smirnenski Blvds), which will house the city's first skating-rink, has also lifted real estate prices in the area. Currently, there are prefabs in this region, asking as much as 790 euro a sq m. An identical flat, situated in a poorly-maintained building in the same district, might sell at 100 euro a sq m discount, according to brokers.

The rising trend in Bulgarian property prices started at the end of 2003 and will continue for at least another three years, she said.
source: www.propertywisebulgaria.com