PROPERTY PRICES IN SOFIA
The demand for properties in Sofia has sharply decrease int he last six months and the prices have subsequently fallen in all areas of the capital.
The lending of mortgages has decreased by 80% by November 2008, totalling 82 million Euros. The interest rate has increased by 2 points. The banks have decreased the size of mortgages from 90% of the price of the property to 50% – 70%. Buyers do not buy off plan.
The price of properties in Sofia started falling from the middle of the last year. In comparison to the first half of 2008 the decrease of the prices of newly built southern areas of Sofia, like Vitosha is 9%; in affluent Lozenets is 8% and 2% in Ivan Vazov.
In Iztok area the prices have been catching up and they grew by 18%, while in the area of the Doctors’ Garden they grew by 11%.
In the first six months of 2009, the recession will influence the property market and most of the future projects will be put on hold or delayed.
The existing infrastructure, the positioning of the property and the access will influence prices much more than before.
The demand for middle and high class properties will decrease, as there are difficulties in finding mortgages. The market will rely on buyers who have enough money to pay the full price and on different leasing plans offered by the developers.
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Category: Bulgaria, Property | Tags: decrease of prices, infrastructure, interest rate, ivan vazov, mortgage, prices in Sofia, Property, recession, tendencies Comment »