Analysts are divided on Bulgaria home property prices|
2010-02-08 00:17 News from Dnevnik.bg
Average housing property prices in Bulgaria will hit the rock bottom by the middle of the year before settling in the following months and then starting to pick up, rising by at least 10% by the end of the year, an industry expert said.
Tihomir Tsakov, manager of Bulgarian real estate agency Aristo, predicted that if there is no unexpected turn of events in the economy, prices will hit the bottom at the beginning of 2010. The market will be also spurred by the slight drop in the cost of borrowing, coupled with the waning supply of quality offers.
This forecast clashes with projections made by other major real estate agencies such as Colliers, Address and Foros, which expect the fall will continue though the first half of the year, tumbling by 10% before settling.
Tatyana Emilova, housing space manager at Colliers, said complete recovery could be expected over the next 12-18 months.
Tsvetelina Taseva, executive director of Address, said the market will depend on which way banks will take. If they opt for quickly selling foreclosed properties as bad loans proliferate, prices will come down. If they choose to keep them, the supply of good property will be reduced significantly.
Aristo estimated that the Bulgarian housing market has gone back to 2004 levels in terms of deal numbers as only some 200,000 transactions took place.
For the first time since 2000, Bulgaria’s average home prices slid to EUR 548 per square metre, according to data by the National Statistical Institute (NSI). On a brighter note, the market dodged the bleakest forecasts, with prices diving 21.36% year-on-year and returning to 2007 levels, according to Tsakov.
He said deal numbers are likely to increase by at least 20% on last year, passing the 240,000 benchmark.
This News is listed at news.Guide-Bulgaria.com
Pages:  > 2010-04-26 Trends on Bulgarian Property Market
> 2010-04-15 Bulgaria attracts Russian property buyers
> 2010-04-13 More Bulgarians buy prefab concrete homes on credit
> 2010-04-12 Buyers look for 100% financing on deals because of low real estate prices
> 2010-03-26 Shareholders` meeting of one of largest Bulgarian real estate investment trust
> 2010-03-09 Cinema city sells two mall projects in Ruse and Stara Zagora to Israeli
> 2010-03-01 British on protest in Bansko - want access to their property
> 2010-02-16 Russians have interest in investing in Bulgarian real estates
> 2010-02-09 The Sultanate of Oman invests in Super Borovets project
> 2010-02-08 Analysts are divided on Bulgaria home property prices
> 2010-02-06 126m in high skyscraper will be built in Sofia
> 2010-02-02 Irish property developer paid EUR 22.5 million for the Phone Palace in Sofia
> 2010-02-01 The highest building in Sofia will be completed in 3 years
> 2010-01-26 Real property foreclosures - next big factor on the Bulgarian market
> 2010-01-21 Ban on cash payments in real estate transactions
> 2010-01-16 Russians interested to buy property in Bulgarian Ski Resorts
> 2010-01-12 Negative trends for Bulgarian real estate market
> 2009-12-27 Building of the Year 2009 awards given in Sofia
> 2009-12-11 Bulgaria suffered a drastic drop in home prices in the Q3
> 2009-12-09 239 seaside hotels for sale - largest is in Sunny beach resort