Luxury homes have diminished in value by about 40 per cent since the onset of the global economic downturn, while the number of sellers of such properties has doubled, real estate agency Unique Estates said on October 26, as by Dnevnik daily.

Since the beginning of the recession, the highest price paid for a luxury home in Bulgaria was 3000 euro a sq m. By contrast, the record deal struck for an apartment on Sofia's Narodno Subranie Sq in 2007 fetched a price of 6000 euro a sq m.

"At the start of the year, the deals volume was similar to last year's, but after March, the trend has drastically changed," Dnevnik quoted Unique Estates managing director Vessela Ilieva as saying. "A luxury home in Sofia priced at one million euro is now perceived as very expensive," she said.

Most potential buyers are now opting to buy a luxury flat in the range of 120 000 to 150 000 euro or a single family home for about 500 000 euro, Unique Estates said.

The real estate agency is owned by AG Capital, the majority shareholder in Address, one of Bulgaria's largest realtors, and real estate consultants Forton International.