The price of real estate in Sofia, Bulgaria has continued its decline in 2010 although at a slower rate than in 2009, according to Colliers International.

Property prices in the Sofia districts of Lozenets, Ivan Vazov and Iztok have either stabilised of fallen by -3% since the start of 2010, a -17% decrease on an annual basis. The districts of Manastirski Livadi, Vitosha, Buxton, Krustova Vada, and Gotse Delchev have seen a 5-6% decline on average with an annual price fall of -19%.

Tatiana Emilova, manager at Colliers International Bulgaria, stated that the main factors currently defining the business environment were “the increased choice of supply together with alluring price tags and the readiness of vendors to offer flexible solutions with suitable credit conditions.”

Construction of new properties in Sofia during Q1 2010 has fallen by almost 50% compared to 2009, with no new projects being announced and those previously halted have now started construction having received new development finance.

Two roomed apartments are the most in demand and depending on location vary from €40-90,000, with buyers looking for quality property under €1000 per sqft Colliers state.