Bulgaria: Drought Lowers Arable Land Prices

Dobrich, northeastern Bulgaria - The drought led to a depreciation of the Dobrudzha chernozem -- the most expensive type of arable land in Bulgaria, local real estate brokers informed.


Head of the regional real estate association Pavlina Todorova told BTA that the downward trend began as early as last spring, and some lots are now sold at under 2,000 leva per decare, some 400 to 500 leva lower than the original price. If the drought persists throughout the winter, the prices of land in the Dobrich region will drop even further, Todorova added.

In 2019, the average price of arable fields in the Dobrich region was 93.8 per cent higher than the average value for Bulgaria, reaching 2,041 to 2,352 leva per decare in the most expensive estates, according to consolidated data of the Regional Statistical Office Northeast.

Ralitsa Kuleva, director of a large real estate agency in the region, told BTA that the prices this autumn have dropped by 100 to 200 leva per decare on the territory of Balchik, General Toshevo and Dobrich, where land now sells at 2,300 to 2,500 leva per decare, down from 2,700 leva a few months ago. She added that a dry year is an exception rather than a rule for the Dobrich region where only one in ten years is marked by a drought.

In Kuleva's opinion, the price of chernozem in the long run will affect the common agricultural policy of the EU. Farmers are expecting the amended Agricultural Land Act and clarity on the criteria for EU funding over the new programming period: if funding will depend on the area farmed or the quality of the production.

According to another broker working in the General Toshevo area, the trends on the land market are reversed this year, and after a poor crop, the supply of lots is higher, and the demand - lower than usual. The prices in the area have dropped to 2,200 to 2,300 leva per declare, or even to 2,000 leva in some cases.

Note: 1 BGN = 0.511 EURO

Source: BTA Daily News