Financial and business news from Bulgaria

Such a collapse of the property market in Bulgaria because of K-19 no one expected

The registered property transactions only in March in Bulgaria decreased by 66.4% on an annual basis, it is clear from the data of the Registry Agency, writes Investor.bg.
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Total 6737 deals versus 20,083 in the same month last year. On March 13, the state of emergency was introduced in Bulgaria to stop the spread of the coronavirus, which initially froze the property market in major cities and across the country.

Published at the end of April Registry Agency data on property transactions in the first quarter also showed a 5.8 per cent drop between January and March, for the first time since 2017, entered transactions across the country falling below the 40,000 threshold.

Among the major cities in Bulgaria the most significant contraction of property transactions in March was registered in Veliko Tarnovo — 31.2%, or 262 registered transactions compared to 381 in March 2019.

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In Sofia, they fell by 24.5% for March, when 2452 deals were entered from 3250 a year earlier. Listed property deals in the capital also registered a 6.3 per cent fall in the first quarter, with deals for the period hitting their lowest level in three years.

In Plovdiv in March 1200 deals were registered compared to 1696 a year earlier, down by almost 30%. In the first quarter Plovdiv registered the biggest drop in property transactions among the major cities in Bulgaria by 9.6%, for the first time since 2017 their number fell below the threshold of 3000 for the period between January and March.

Varna is the only one among the major cities in the country achieved growth of property transactions in the first quarter and the number reached its highest level in the period since the 2008 financial crisis. However, in March alone, they were down 23.8 per cent - from 1358 in March 2019 to 1034 in the same month this year.

A decrease of 23% of the registered property transactions in the third month of the year was registered in Burgas - from 718 to 553. In Pleven, the annual decrease in transactions in March was 28.2% and in Ruse and Stara Zagora they decreased by 19.3% and 17.4% respectively.

The data relate to transactions with all types of property, including agricultural land.,

The Registry Agency explains that they cannot provide information only on the transactions in housing, since “there is no statutory requirement to fill in information whether the property is residential or not in the application of data and their storage in the Land Register'.

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