FROM PURCHASE TO RENT
In the first months of 2008 rentals have increased by 12% in comparison to the same period of 2007. The major reason for this is the constant decrease of the number of purchases caused by the recession and the lack of clarity about the future of the property market. More and more potential buyers turn towards renting, rather than buying. This is due to the restrictive politic of the banks and the growing financial uncertainty, as well as the growing expectations for an upcoming decrease of the property prices.
More and more apartments which have been bought for investment are offered for rent. The one bedroom apartment is the mostly in demand – the interest towards renting such kind of apartments have increased by 14% in the first ten months of this year. At the same time the demand for studios has decreased by 6%. This is due to the fact that the rent of the studios and the one bedroom apartments are similar in size.
Category: Bulgaria, Property | Tags: apartment, apartments, increase, investments, properties, property in Bulgaria, property purchase, recession, rent, restrictions Comment »