After the euphoria of 2007/08, which ended in an overpricing of Bulgarian real estate, the devastating effect of the crisis was felt in full in 2009 and partially in 2010. During this period, the number of transactions fell by about 40 per cent.

In 2010, real estate agents observed a progressive takeoff in activity which, has translated into increased global demand for homes, set against existing offers, consequently bringing forth transactions. Finally, the market appears to be returning to normal.

The "remains" of the crisis allow the rise of conditions for a pseudo-balance: a number of owners have to sell their properties, due to fi nancial reasons, simultaneous with sustained demand. This creates a lot of opportunities to be seized.

The profile of real estate buyers changed in 2010. We observed a withdrawal of the investors (Greek, Irish and English) in favour of young couples with two incomes now making their first acquisition. Therefore, it is the small and medium apartments that are currently in greatest demand. With regard to purchase price, we notice that a great deal of sellers have not reflected on the general drop of the market value of their property, which tends to limit the number of transactions.

This phenomenon has been observed in most neighbouring European capitals that have weathered the crisis. We see a gap between the average price offered and the real underlying value of the property. The overpricing can reach 20 to 25 per cent, even more in some cases in areas like Lozenets, for example. Owners should have more confidence in their broker for the valuation of the properties, since the crisis allowed the best performing agencies to emerge. It is the real estate agent who, eventually, facilitates the transaction.