BULGARIAN PROPERTY MARKET
The property market in Bulgaria is blocked because of the recession. The few purchases go through in the conditions of total price chaos. There are hundreds of thousands unsold apartments on the market, only in Sofia they are 115 000. Most of them are offered at unrealistic prices. There is a significant difference between the prices of the sellers and the prices which buyers are ready to pay. In Sofia this difference is of 12 000 Euros on average.
The times of fast growth of the property market are over and only the investors who adapt quickly to the new requirements for better quality and lower profit margins will survive. Some analysts think that the normalisation of the huge profit margin will also affect other parts of the economy.
It is expected that during the recession the major buyers on the property market will be private risk investors who have free cash and the Bulgarian investors will have greater impact. Only in the last year, the share of the Bulgarian investors have increased by 37%.
The number of new planning permissions have decreased by 34% according to the National Statistics Institute.
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Category: Bulgaria, Property | Tags: apartments in Bulgaria, investment in Bulgaria, new property, planning permission, property market in Bulgaria, recession, The National Statistics Institute One comment »
March 4th, 2009 at 20:38
My wife and I are interested in buying a studio in Bansko near a ski lift, but in the current climate we are reluctant to buy of plan in case the builder goes bankrupt before it’s finished. If anyone has something suitable and finished to sell please mail us details.
We would also contact agents dealing with 2nd hand property but on the net I can only find off plan.
With thanks in advance
Gareth and Nicole