The average market price of residential properties in Sofia is down over 10% in the second quarter of 2011, compared to the same period of last year.

The data comes from a report of Raiffeisen Real Estate which measures the dynamics of the actual sales prices of real estate in the country.

Compared to the first quarter of 2011, the average market price of residential properties in Sofia is up 3.6%

In the second largest city of Plovdiv, the average market price of residential properties in the second quarter of 2011, compared to the same period of last year, is down 2.6%, while in the Black Sea capital Varna there is a 6.9% decrease. Compared to the first quarter of 2011, prices in Plovdiv are up by the mere 0.2% while in Varna they are down by 1.5%.

Fully finished and well-constructed projects, with permit to be used, good neighborhood infrastructure and access to public transportation keep the prices from the end of 2010 while prices of new construction in districts without good infrastructure and of older buildings keep going down.

According to Raiffeisen Real Estate, the market is driven mostly by buyers purchasing homes for own use, seeking the best quality-price combination. Buyers now are trying to fit their budget and are very cautious about mortgages. They compromise with quality and infrastructure only if the price is significantly below the average market price in the area.