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| Demand for small homes |
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Small studio flats priced at around ?25,000 have been accounting for 34% of total sales in the country's real estate market but few new projects are due for completion.
The supply of such types of studios is decreasing while new construction for the moment is rather dormant. This is likely to create a demand that is likely to surpass initial forecasts.
Buyers are bargaining hard and in 87% of cases they are asking for discounts on asking prices. In the first three months of the year the average discount amounted to ?3,000.
The sellers are being urged by banks to keep the prices high but have to make discounts if they want to sell or risk losing buyers. On average, the discounts amounted to about 5% of the asking price.
It reckons that a rise in values in local real estate is not to be expected until the third, or perhaps the fourth quarter of 2010 because of the economic situation.
Some specialists are forecasting 10% increase in prices by the end of 2010. But according other, real estate values will continue to depreciate until the beginning of July. They reckon on a further 10% decrease followed by a stabilisation in prices.
Bulgaria was once a favourite of overseas buyers especially from the UK, Ireland and Scandinavia. From 2006 to 2008 foreign investment in Bulgarian real estate accounted for more than ?2 billion while in the preceding three years it was about ?300 million a year.
Source: themovechannel.com |
| Monday, Jun 21, 2010 |
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| » RENTALS |
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| Office Space |
€ 395 |
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| Location: |
Veliko Tarnovo |
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