advertisement
Mon, May 20 2013
Real estate prices in Bulgaria edge towards recovery
The latest report from Colliers International has indicated that the average price of a home in Bulgaria has decreased by about 14 per cent in the first quarter of 2009 as opposed to corresponding figures from 2008. It also indicated that the country's construction sector has been hit the hardest by the global financial crisis as the drop in investment is expected to reach over one 1.2 billion euro.
Regardless of the slump in value, however, or perhaps because of it, the report anticipated that the Bulgaria property sector will start to regain some ground and restore some of its lost value towards the middle and second half of 2009, homesoverseas.co.uk has reported.
The reduction in value is attributed to two factors: first, the general decline in demand in light of the global economic downturn, and second, the larger supply on offer as a consequence of the ever increasing amount of completed construction on the market. The latter, added to already existing offices that were made vacant by companies departing as a result of poor business performance, has revealed new business opportunities.
The Bulgarian property market, which was considered to be one of the top property investment destinations in the world a couple of years ago, has since suffered, but a crisis inevitably spawns possibilities and opportunities for others. Moreover, there appears to be finally a light at the end of the tunnel, as the rate of decline in prices in Bulgaria will slow down and they will, slowly but surely, gravitate towards equilibrium. Since the beginning of the global economic downturn, the most drastic fall in international demand and a severe oversupply of homes has occurred on the Black Sea coast.
But Colliers Intenational expects that prices in Bulgaria will stabilise in late 2009 or, at the latest, the first quarter of 2010, in large part because construction levels have dropped significantly in Bulgaria, which caused the existing oversupply of residential stock to be absorbed, so easing some of the pressure on the market.
Source: propertywisebulgaria.
Regardless of the slump in value, however, or perhaps because of it, the report anticipated that the Bulgaria property sector will start to regain some ground and restore some of its lost value towards the middle and second half of 2009, homesoverseas.co.uk has reported.
The reduction in value is attributed to two factors: first, the general decline in demand in light of the global economic downturn, and second, the larger supply on offer as a consequence of the ever increasing amount of completed construction on the market. The latter, added to already existing offices that were made vacant by companies departing as a result of poor business performance, has revealed new business opportunities.
The Bulgarian property market, which was considered to be one of the top property investment destinations in the world a couple of years ago, has since suffered, but a crisis inevitably spawns possibilities and opportunities for others. Moreover, there appears to be finally a light at the end of the tunnel, as the rate of decline in prices in Bulgaria will slow down and they will, slowly but surely, gravitate towards equilibrium. Since the beginning of the global economic downturn, the most drastic fall in international demand and a severe oversupply of homes has occurred on the Black Sea coast.
But Colliers Intenational expects that prices in Bulgaria will stabilise in late 2009 or, at the latest, the first quarter of 2010, in large part because construction levels have dropped significantly in Bulgaria, which caused the existing oversupply of residential stock to be absorbed, so easing some of the pressure on the market.
Source: propertywisebulgaria.
-
Print
-
Send via email
- Translate to
-
Share:
Comments
To post comments, please, Login or Register.
Please read the The Sofia Echo forum comments policy.
Bulgarian construction market shrinks further, agency says
On face of current trends, the industry could see an annual drop of 25 per cent in the number of new construction projects in 2009 compared to the year before, estimates from Arco Real Estate show.
House prices in Bulgaria will continue to drop – Address
House prices in Bulgaria in the first half of 2009 were 23 per cent lower than those in H1 2008, with decreases higher in towns where properties were overpriced, real estate company says.
Almost 40 per cent of property offers in Bulgaria updated every two weeks
Average selling prices in Sofia have tumbled by 22.19 per cent year-on-year from January to June, 21.9 per cent in the coastal city of Varna, 19 per cent in Bourgas, also at the Black Sea, and 18.7 per cent in the second largest city of Plovdiv.
Parking fees in Sofia higher than in Moscow and Madrid - Colliers
A survey of cities around the globe in June 2009 placed Sofia as the 13th most expensive city in Europe in which to park, and 38th in the world.
Colliers International: vacant office space in Bulgaria on the rise
Investors realise that it’s not viable to have a building remaining empty over the course of a year – so it's better for them to employ more flexibility to offset that loss.
Property expo in Sofia to host discussion on 'opportunities' from economic crisis
BalPEx and BalREact exposition to be held at Inter Expo Centre in Sofia from April 24 to 26.
More in this category
Bulgaria's real estate market stabilising - realtors
Worst is over for Bulgaria's property market after three years of decline, reports by Yavlena and Bulgarian Properties real estate firms claim.
Bulgaria plans bill to weed out rogue real estate agents
Draft law envisages professional association for real estate agents and a public register of real estate companies to bring order to the business and get rid of rogues and rip-off artists.
Landmark Centre Varna to be offered for sale on March 21
Landmark Centre Varna’s financial reports show its largest debt is an investment loan of 6.9 million euro issued by Eurobank EFG Bulgaria in mid-2008 and secured with a mortgage.
Raiffeisen Real Estate: Prices of Sofia homes returned to 2007 levels
Average market prices of homes in Sofia fell by one per cent in the fourth quarter of 2011 compared to the same period of 2010, according to the Raiffeisen Real Estate Index, as quoted by Klasa daily.
Most property sales in Bulgaria were people wanting to escape their investment – report
Proportionately, the number of transactions in leva increased as people reacted to speculation that the euro would disappear.
© 2000-2013, Sofia Echo Media Ltd.
Web Design by RIZN
Sofia Echo Media is part of the Economedia Group.
The news and information content on this website is provided by our editorial team and is copyrighted.
Any unauthorised reproduction or use of it is strictly forbidden. Reproduction of this website's content is permitted only
with prior written permission from the Editor-in-Chief, should be propertly acredited and provide an active link back to our site.
Comments posted by the website's visitors are independent of the editorial materials and do not represent the views of sofiaecho.com.
Sofia Echo Media cannot be held responsible for the statements contained in visitor comments.
The percentаge change in the shares' prices are based on the price of the last transaction of the current session compared to the
price of the last transaction of the previous session. Bulgarian Stock Exchange data is not real-time, but updated every 15 minutes,
and should not be used as a basis for decisions about buying or selling stock options.
- Economedia Group portfolio:
- In Bulgarian:
-
Business:
Капитал,
Кариери,
Пазари,
Ho Re Mag,
Регал,
Градът.bg,
Одит,
Foton.bg,
Online shop
- News: Дневник, Европа, Foreign Policy - България
- IT: IDG.BG, Computerworld, PC World, CIO, Networkworld
- Entertainment: Бакхус
-
In English:
The Sofia Echo
Residential stock being absorbed? Maybe by renting but certainly it does not appear to be by sale. I believe that 2009 Q4 2010 Q1 is optimistic to say the least, possibly Sofia end Q2 start Q3 we will see it bottom out and the remaining cities end 2010.
As for Bansko and the Black Sea Torremolinos resorts who knows what may happen? Distressed assets, demolition and start again or renovate simultaneously with infrastructure improvement and efficient sewage treatment? Lets hope that the EU funds will start to be released and put to beneficial use for all Bulgarians and [...]
Read the full comment holidaymakers/investors alike!
one point of view is that the obsorbed numbers will be low because the bad economy keepd people and companies from buying, so oversupply will continue until economical growth returns and people believe in income possibilities