Analysts: Bad management undermines Bulgarian office market
The global economic deterioration and poor management of investments have undermined the Bulgarian real estate market in the first half of 2009 with the office segment being the most severely hit, a survey by Foros real estate agency said on June 16 2009.
Amid ample supply and flagging demand for new real estates, nearly 20-30 per cent of offices across the country stay empty. The falling rental and sale prices, which have shed 12.27 per cent and 7.26 per cent, respectively, since January, provide no relief to the shaky market. The variety of promotions launched by sellers also fails to steady the segment.
Volatility is also the order of the day in the housing sector where demand for new flats is traditionally high. Estimates of US real estate services company Jones Lang LaSalle point to a 12 per cent yearly drop in property prices in Sofia, while real estate agency Address reports a 16-38 per cent decline in the capital city since the start of 2009.
Investment activity in the second half of the year will be sporadic; more projects will be put on ice and the sector will bounce back to normal as soon as the economy takes a turn for the better, Foros said.
However, some analysts see the green shoots of recovery in consumers’ revived interest and restored confidence, as well as in decelerated price downtrends.
Amid ample supply and flagging demand for new real estates, nearly 20-30 per cent of offices across the country stay empty. The falling rental and sale prices, which have shed 12.27 per cent and 7.26 per cent, respectively, since January, provide no relief to the shaky market. The variety of promotions launched by sellers also fails to steady the segment.
Volatility is also the order of the day in the housing sector where demand for new flats is traditionally high. Estimates of US real estate services company Jones Lang LaSalle point to a 12 per cent yearly drop in property prices in Sofia, while real estate agency Address reports a 16-38 per cent decline in the capital city since the start of 2009.
Investment activity in the second half of the year will be sporadic; more projects will be put on ice and the sector will bounce back to normal as soon as the economy takes a turn for the better, Foros said.
However, some analysts see the green shoots of recovery in consumers’ revived interest and restored confidence, as well as in decelerated price downtrends.