Market controversies

Supply of holiday properties, especially in overdeveloped areas, outstrips demand. Yet, market analysts say this trend mostly affects low-end holiday apartments with poor locations and infrastructure, usually built with cheap materials.
Meanwhile, mortgage credit slowdown in Europe and a withdrawal of some foreign buyers have downsized demand. The main results of the two trends are cheaper properties in the low end of the market. An unfurnished apartment in St. Vlas, located in the central parts of the coastal village, is on offer for 750 euros per sq m.
According to property professionals, despite lower values buyers currently show no interest in small and unattractive holiday apartments while the accumulation of completed and furnished homes gives them options to choose from.
There aren't any statistics for the number of unsold completed properties in places like the resort of Sunny Beach. But despite the availability of a great number of holiday homes in Sunny Beach, the market has seen a new record price - an apartment there costs 4,000 euros per sq m. The 64-sq-m property is located in a completed, luxury beachfront building with sea view and is entirely furnished.
Similar apartments have entered the market through secondary sales. Some foreign investors are now releasing the properties they have acquired during the last couple of years. Apartments bought for 500-600 euros per sq m are sold for no less than 1,000 euros per sq m. A research by the Property Index magazine shows that holiday homes at a beachfront complex completed in 2007, which is located in the town of Aheloy, near Pomorie, with proper infrastructure, are sold for 2,150 euros per sq m. The same time last year these were priced between 1,500 and 1,700 euros per sq m.
Real estate supply in Primorsko also evidences slightly higher prices compared to 2007. The highest level for apartment there is 2,100 euros per sq m. The latter price refers to an 80-sq-m flat in completed complex, located in the northeast parts of the city. In the high-end holiday homes in St. Vlas are within the 2,700-2,800-euro-per-sq- range.
Despite the great number of unsold apartments, developers continue to build, although predominantly holiday complexes, which are claimed to be of higher quality. They believe real estate with good location, panoramic views and well-developed infrastructure will retain their prices and may even experience growth.
On the northern Black Sea coast and near Varna properties keep their asking prices. At the high-end of the market in Balchik an apartment costs 2,800 euros per sq m. This is the asking price of an 88-sq-m, beachfront home. In 2007, the most expensive apartments in the area were just touched the 1,700-euro-per-sq-m threshold. At the lower end the market there is around 850 euros per sq m.
Prices of mountain properties are relatively stable. The cheapest on the market cost 550-600 euros per sq m as the high end segment reaches 2,300 euros per sq m.