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UniCredit maps out real estate sector growth trends

Tuesday, May 20, 2008

Fast wealth accumulation and the aspiration toward higher living standards will shape demand on the real estate market in Bulgaria, Christofor Pavlov, chief economist at UniCredit Bulbank, told the Annual Summit of the European Bank for Reconstruction and Development in Kiev, Ukraine.
The balance of demand and growth factors shows that prices of real estate will slowly ease in the next few years, according to Pavlov's report, made available to The Sofia Echo on May 19.
Bulbank expecst that the growth of loans and the evening-out of real revenues to continue to support growth in residential prices despite that the market will remain far from the growth rates observed during the past year, Pavlov wrote.
In the context of the global financial crisis, there were clear signs for delay of foreign demand.
A number of real estate brokers said buyers of vacation homes are on the decline, whereas a large number of speculative investors are on the selling streak in a bid to cash in on purchases.
The last quarterly data for the number of real estate deals registered in the Registry Agency also showed that the market reached a new peak last year.

Source: PropertyWise Bulgaria