Construction Of New Buildings – 70% Drop
The number of new buildings in Bulgaria has dropped by 70% on an annual basis. In the last quarter of 2009 the number of the new planning permissions was 1343, while in the same period of 2008 they were 2452, according to the National Statistics Institute. This huge drop has come after 5 years of permanent increase of the number of planning permissions.
The recession in the construction industry has also had its impact on the size of the new apartments – their living area has decreased by 24% only from October to December 2009 in comparison with the previous quarter. Annually the drop has been more drastic – it has exceeded 70%.
The construction of new offices has also suffered. In the last quarter of 2010 only 63 planning permissions have been issued, which is a drop by 25% in comparison with the previous quarter and 37% on an annual basis. Most of the already finished offices are left empty, despite the decrease of the rents.
The price drop of real estates in 2009 is on average by 20% but in some parts of the country it has reached 60%. The real prices at which purchases are made in the Bulgarian capital Sofia are on average 23% lower in comparison with the period 2007 – 2008, i.e. the average price in 2009 was 980 Euros/ sq.m.
The price drop in the other cities has not been so drastic but property prices there have not reached the levels of those in the capital. In Varna, the second Bulgarian city, the price drop in 2009 was of 14%, while in Plovdiv and Burgas (the third and the fourth largest cities) – 15%.
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Category: Bulgaria | Tags: Burgas, new buildings in Bulgaria, office space, plovdiv, price drop, property in Bulgaria, purchases, recession, varna Comment »