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Survey: Homes in Varna Are the Most Expensive

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Survey: Homes in Varna Are the Most Expensive

More and more people seek to buy homes in older residential buildings like this one.

The housing prices in the northern coastal city of Varna are the fastest rising. On the whole, property prices in the second quarter of the year are 8.6% higher than in the same period last year, according to information of the Nationals Statistics Institute (NSI).
In Varna, however, the apartment prices have risen by 13.9% per year. The city of Rousse on the Danube is ranked second with an average rise in property prices by 12.8%, while Sofia is ranked third with 10.6%.

In all six cities in the country with a population of over 120,000 people, property prices are rising year-on-year. The increase in Stara Zagora is 8.9%, in Plovdiv - by 6.8% and in Burgas by 4%.

Compared to the previous quarter of 2017, housing prices in Varna are again the fastest rising - by 4.5%. In Sofia and Rousse, the appreciation continues steadily and is 3.9%.

But in the southern coastal city of Bourgas property prices in the second quarter of 2017 have fallen by 2.2%. This is due to a serious decline in new construction by 5.7%, while the prices of existing dwellings have increased by 3%.

It is noteworthy that the prices of new homes in some cities have fallen on a quarterly basis - in Stara Zagora (by 0.7%), Ruse (by 0.6%) and Plovdiv (by 0.2%). But in these cities the prices of old apartments are rising at a faster pace, so overall average house prices are rising.

Obviously, entrepreneurs have offered too high prices for their newly-built dwellings and are now willing to go down a bit so as to conclude deals, or customers find a number of disadvantages in the new apartments and are willing to pay more, but for quality old construction where the size of the rooms is often larger than in the new apartments.

This is confirmed by NSI data, according to which the prices of new apartments per year have increased by 7.3%, while the old ones have increased more significantly - by 9.2%.

But the cities where there is the greatest demand for property deviate from this trend. In Sofia, the prices of old apartments have risen by 9.4% y/y and of the new ones by a lot more - 13.5%.

Stara Zagora's new housing prices are rising faster, while in Varna the pace of new and old construction is almost flat. Apparently the demand for real estate in these three cities is quite large, resulting in a shortage of new construction and consequently a rise in property prices.

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