Property Market – Overview
After the fall of the number of sales of properties and the price drop, the construction industry in Bulgaria and Romania has reached the bottom in the first half of 2009. Most of the developers in both countries turned out to be unprepared for the shrinking of the local property market and the end of the constant influx of foreign investors of the last couple of years. One of the major reasons for the sharply decreasing number of purchases is the limited access to mortgages which also caused the property prices to drop. At the same time the number of the properties on offer continues to grow. The shrinking of the property market has made many developers put on hold their new projects and drop the prices. It is expected that the price drop in Sofia and Bucharest this year will be between 10% and 20%. At the end of 2008 the average property price in Sofia was 1250 Euros per sq m while in Bucharest it was 1800 Euros per sq m. The highest prices were in the Slovenian capital Ljubljana – 2800 Eurso per sq m.
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Category: Bulgaria, Property | Tags: bucharest, buying property, developers, price drop, project, property in Bulgaria, property prices, recession, region, Sofia Comment »