December 30th, 2011 — 5:49pm
Analysts expect that 2012 will be again the year of the buyers. Most buyers will be first-timers. The hope is that those who have savings or free money will be bold enough to spend them on properties because of the attractive prices.
The property prices in Bulgaria will continue to fall in 2012, however the analysts do not dare to give forecasts about the amount to which the prices will drop. The expectations are that the buyers and the tenants will dictate the property prices. Most of the buyers of holiday apartments and houses will be Russian, while the buyers of all other types of property will be mostly Bulgarians. The expectations are that in 2012 cheap properties not exceeding 55 000 Euros will be in demand. Although the number of the property sales in 2011 has increased by 30% in comparison with 2010 unlike a year ago, now the buyers are spending mostly on cheap properties.
Concerning the survival of the construction companies, the European money will be of prime importance for many of them. In just one year the income of the construction industry has shrunk from 11.7 billion levs to 9.9 billion levs in 2011. Big companies will focus on the construction of apartment buildings and private investors will commission them for the construction of individual buildings. The construction of big shopping centres will continue.
The money from the European programmes will be spent for the reconstruction of hospitals, schools and cultural monuments. The greatest amount of the European money will go for the development of infrastructure. Some of these projects have to be completed in 2012.
1 comment » | Bulgaria, Property
December 19th, 2011 — 11:40am
The Bulgarian Economy will grow of only 1.5% in 2011, according to analysts. Earlier forecasts predicted a growth of 2.6%. However, the expectations are for a decrease of the export and a negative impact on the labour market.
The slowing down of the growth of Bulgaria’s GDP is due to the negative perspectives for the Euro zone economy and the expected sharp drop of the investment in Bulgaria in the third quarter of 2011.
The analysts expect additional decrease of the balance of the corporate sector. The export which has been the stabilizing factor of the Bulgarian economy is expected to shrink and to put under a risk the already stabilizing labour market.
It is expected that Bulgaria will avoid the second recession because the balance of the public sector remains strong, while the export demand is steadily decreasing, although it is far from the sharp drop experienced in the beginning of 2009. The growth of the Bulgarian economy is expected to return to normal levels in two-three years time.
Comment » | Bulgaria
December 14th, 2011 — 12:57pm
According to the analysts, there are three tendencies concerning the commercial property market in Bulgarian in 2012.
The first one is that the number of buil-to-suit industrial centres has increased due to the increased volume of outsourcing of light industrial production from Western Europe into Bulgaria. Bulgaria is attractive with low taxation and low cost of labour.
The second tendency is that the relocation of companies into newly build office centres has intensified due to the fact that the owners offer 5 to 7 year rental contracts at attractive prices and this allows the companies to cut costs during the recession.
The third tendency is that six new shopping centres are under construction throughout Bulgaria and of them three will open in 2012 – Bulgaria Mall, Paradise Centre and a new mall in Bourgas.
Comment » | Bulgaria
December 7th, 2011 — 12:38pm
The Bulgarian National Statistics Institute has announced that from July to September 2011 the Bulgarian GDP has increased BY 0.3% in comparison with the previous quarter of 2011. In comparison with the same period of 2010, the growth is by 1.6%. Nevertheless, the Bulgarian economy is slowing down. In the first quarter of 2011 the growth of the GDP was 3.3%, while in the second it was 2%. According to the analysts in the beginning of 2012 the growth will slow down even more it will not enter into a recession.
In the last year the productivity of the Bulgarian economy was one of the best in Europe – exceeding 7%. Partially this was due to the lost of jobs, partially to increased production. The National Statistics Institute has announced that in the first quarter of this year the Bulgarians have increased their productivity by 5.9% on an annual basis. The highest increase was in industry, while the worst was in agriculture.
1 comment » | Bulgaria