News
Expectations of Bulgarian Real Estate Market for 2009
28.01.2009
Regarding the sales prices of residential properties in Bulgaria in 2009 are expected to decline or at best stagnation of price levels for quality projects. After the initial drop in the first half of 2009, we expect more activity in the housing market in the second half of 2009, when buyers will accept the new price levels as advantageous, and will begin to buy, forecast in its annual analysis of Fortan.
On the Housing market in Bulgaria prices grown rapidly over the past two years, until the stage in which price was the most determining factor for the account of the location and quality. Now the market for residential property is experiencing particular difficulties of the higher price levels, which occurred when part of stagnant prices and a decline in other writes in the analysis.
According to consultants this is caused largely by the many quick projects (no available infrastructure and good living conditions), which appeared on the market last year, and measures difficult procedure for loans to purchasers of residential property. Investors of this kind tend to reduce sales prices for projects in the new environment of increased competition and lower demand.
Strong effect in a reduction in prices of residential properties will have limited opportunities for funding from banks. It is expected that this situation continues to quality projects and serious investors.
In the residential sector of the real estate market in our price growth observed in 15% of large cities in the first half of 2008 led to the competitions, not only among potential buyers, but also among the first investors who buy or start to build. Last year continued the implementation of several residential projects in the short term without providing the necessary infrastructure. Race was based mainly on the desire for quick speculative profits by raising prices.
The problem of unrealized projects in the residential sector has its impact, especially in the capital, which are currently posted around 2.2 million sq. m of residential areas (around 25 thousand residential units).
Thus, in the last months of 2008 was observed stagnant sales prices in some areas and decline to 15 percent in others, such as changes in price levels are determined by many factors.
The percentage change in the prices of homes under construction for 2008 is expressed in 12% growth in this figure recorded strong growth in the first half of the year and the subsequent decline in the period October - December 2008
Meanwhile growth in ready homes continue although at a slow pace, with annual growth reaching 20-22% in prices of residential properties in the country - has reported a rise in bids since the last three months the number of deals has fallen and their selling prices are not indicative of the situation as a whole, the consultants indicated.
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