For the months of May and June, supply on the residential property market surpassed the demand by 50 per cent, Katya Tsenova, the executive director of Address real estate agency, told a news conference on July 21.

In an attempt to evaluate the current status of the market, there were a number of contradictory statistics made public by various agencies in the past several weeks, Tsenova said.

As being one of the leading consultants and somewhat of a price negotiator, Address determined that Bulgaria’s residential property market is falling into a state of self-correction. Tsenova explained the tendency as a situation when potential buyers become more particular in their wishes and refuse to pay the proposed high prices. This compels sellers to correct the demanded prices and lower them enough to make them more appealing, the executive director said.

Rising inflation and the higher interest rates charged by banks since the end of 2007 have contributed to the property price hike, Tsenova said. According to Address real estate, for the first six months of the year, the average increase of residential property in the bigger cities comes to 17 per cent.

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