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Jones Lang LaSalle: Sofia home prices may fall 12% in 2009

Mon, May 18 2009 11:03 CET

byDnevnik.bg

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Jones Lang LaSalle: Sofia home prices may fall 12% in 2009

Photo: Maria Subotinova

Housing property prices in Sofia may fall by up to 12 per cent in Sofia and up to 20 per cent in Bucharest in 2009, a report by global real estate consultancy Jones Lang LaSalle has said.

While sales trends and home price movements will be downward in both cities, Sofia will slide slower than Bucharest and see smaller declines.

The trend in the strongly cyclical real estate sector is expected to persist throughout the year and not turn around before 2010. Now that the growth has skidded to a halt, some entrepreneurs will opt for pulling out or wait for better times before coming back to their projects, according to the Jones Lang LaSalle analysts.

The main factor that is driving down the property markets in Bulgaria and Romania is the withdrawal of foreign investors, but it is coupled with the tight credit, which narrows funding options for local investors.

On a global scale, the property markets of the US and the UK have already hit the rock bottom and are headed for a gradual recovery, Jones Lang LaSalle said in a separate study.

The signs that the crisis has started to subside are expected to start unfreezing the markets in other leading world economies in the coming months. But a complete recovery will only be possible two years after the economy itself has shaken off the crisis, the consultancy firm forecast.

Source: Dnevnik

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Comments

Anonymous james Thu, May 21 2009 03:42 CET
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i sold my flat near mall of sofia
(center of sofia) for 2000 euro
for a sqmr, last week.
about the same price i could have recieved 6 moths ago, so i havent expirienced any fall in price.
the demand was not strong, but the buyer was found.

Anonymous simon Tue, May 19 2009 14:28 CET
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start develop the bulgarian tourism sites like ski resort lakes like batak dam and others and you will see the investors coming back

Anonymous Keith Mon, May 18 2009 20:57 CET
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12%
The genius at LaSalle is dreaming.


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Economic crisis knocks down housing prices throughout Bulgaria

Residential prices will slip to their lowest in the third quarter of up to 30 per cent on an annual basis, analysts say.

Forecasts about Bulgarian real estate vary but further downturn expected

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