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No Buyers Commission

Adddress Real Estate Agency, leading property agents in Bulgaria, have announced that as from today, 9 February 2009, they will not charge buyers commission. Address say that they are doing this in the light of the current difficult financial climate, to encourage buyers to purchase Bulgarian property at lower cost and to assist vendors sell more quickly. The real estate agent said that the financial crisis was first seen in the Bulgarian property market in the last quarter of 2008, when housing prices started to decline.

Sofia has experienced ups and downs with property prices; the area of Livadi with prices down by 50 euros a sq.m., yet Studentski Grad shows an upward trend of the same amount. Overall in 2008, property prices in Bulgaria increased by 22%, with higher land prices contributing to this. Although prices increased, the number of potential buyers has gone down and they are much more demanding about build quality than previously. Some are putting off their buying decision in the belief that prices may fall further.

For the constructors / developers, they have seen an immediate negative result from the crisis and only those with the means to finance their projects and longevity in the marketplace sustaining good levels of stability.

Figures released by Address show that during last year 15% of purchases were for off plan property. They also noted that a tightening in lending meant that many potential buyers settled for rented property. Supply of rented homes has increased with many who have a second home placing it on the market, thus keeping rental prices steady.

Address reports that the market is far from a state of collapse. Supply is higher than demand but property owners are not willing to sell "at any price". The market is currently a buyers and cash market but fortunately without the presence of those seeking to make a quick profit.