High prices vanish

More property sellers succumb to subsiding demand and decrease asking prices. 
Old builds in Sofia now cost about € 1,000 per sq m in prestigious-like regions and less in suburban neighborhoods like Lyulin or Mladost.
Properties dating back to communist times are perceived better than panel residences and have maintained relatively high levels during the construction boom. In June, a 93-sq m three-room apartment in Mladost 2 neighborhood in Sofia could be bought for € 65,000. Just a year ago this sum could be only enough to buy off-plan a two-room flat in a similar location. A three-room flat in the prestigious Lozenets neighborhood costs € 105,000, i.e. € 1,050 per sq m.
Panel prefabricated flats in most regions have become up to 20% cheaper. In Mladost 1 neighborhood, a 90-sq m, three-room apartment is sold for less than € 50,000.
It seems as if the price of old builds is no longer equal to the price of new units. The cheapest apartment (now under construction) in Mladost 2 neighborhood costs € 650 per sq m.
The residential market is now moving towards a clearer differentiation between types of construction in other cities as well. The city of Burgas is one of the last cities to see prices of existing residences fall – asking prices have lost about 6.3% of their average value Q1. New builds in Meden Rudnik neighborhood start at € 300 per sq m since abundant supply pushed prices down. Panel prefabricated flats and new builds in the prestigious Lazur neighborhood are still offered at average levels of € 900 – 1,000 per sq m. New properties cost dearer because of the fact people have to pay for common areas as well.
The city of Plovdiv, which was a leader in rising prices in the beginning of 2008, saw prices decline along with transactions speeding down. Therefore, the maximum asking price in the city center is now € 1,300 per sq m. In the neighborhood of Karshiyaka asking price levels do not exceed € 1,100 per sq m.