On the strength of a slight pick-up in the residential property market in Bulgaria over the past year, prospects remain stable and positive, concluded participants in a pan-european real estate conference in Sofia. The experts discussed the market situation at a panel forum during the recent 2011 BalREc Investments and Real Estate market conference in Sofia.
The enthusiasm of potential customers and banks for financing new projects will remain moderate for the next 1-2 years, the experts agreed but, despite that, from a mid-term perspective, the potential of the market, especially in Sofia, remains high, said Maximilian Mendel from the Warsaw-based REAS market research company.
To prove his point, he mentioned the insufficient supply of residential properties that meet up-to-date buyer requirements, as well as the long-term positive perspective for the Bulgarian economy. Mendel also said that housing prices are not expected to drop much further in the near future and that, at present, prices in Sofia are back to their levels from 2007.
According to Lembit Tampere, CEO of Estonian real estate group Arco Vara Group, the price drop will not last forever. High and low points are equally unstable, he pointed out. "It would be ridiculous to expect that the price of an apartment could be EUR 500 per sq m in five years time", Tampere added. He also explained that the first signs that the market is hitting the bottom are showing. As an example he cited the increased sales volumes on the market in Sofia.
The Q1 Raiffeisen Real Estate index shows that average residential property prices in Sofia have dropped by 9.4% in the first quarter of 2011 year-on-year, and by 5.2% in comparison with the last quarter of 2010. In this context, Georgi Pavlov, executive director of Address Real Estate said that 96% of the deals carried out with his company over the past few months were sealed at what he called "attractive prices." The entrepreneurs who took part in the discussion agreed that in this respect the market is expected to recover in the next few years.
According to recent data from Property Partners BG, the prices of residential property in Sofia averaged between 820 and 850 Euro per square metre for the first quarter of 2011, down by around 100 euro per square metre from the second half of 2010. In their latest market analysis, Managing Partner, David Livingstone says, "The worst is behind us, prices have reached the bottom of the curve and there are signs that buyers are returning to the market, picking up bargains before prices increase again."
Related articles:
Bulgarian Property Prices Reach Their Baseline
Time to Buy in Bulgaria's Recovering Property Market
Bulgaria Gateway Property Market Analysis - Q1 2011
The enthusiasm of potential customers and banks for financing new projects will remain moderate for the next 1-2 years, the experts agreed but, despite that, from a mid-term perspective, the potential of the market, especially in Sofia, remains high, said Maximilian Mendel from the Warsaw-based REAS market research company.
To prove his point, he mentioned the insufficient supply of residential properties that meet up-to-date buyer requirements, as well as the long-term positive perspective for the Bulgarian economy. Mendel also said that housing prices are not expected to drop much further in the near future and that, at present, prices in Sofia are back to their levels from 2007.
According to Lembit Tampere, CEO of Estonian real estate group Arco Vara Group, the price drop will not last forever. High and low points are equally unstable, he pointed out. "It would be ridiculous to expect that the price of an apartment could be EUR 500 per sq m in five years time", Tampere added. He also explained that the first signs that the market is hitting the bottom are showing. As an example he cited the increased sales volumes on the market in Sofia.
The Q1 Raiffeisen Real Estate index shows that average residential property prices in Sofia have dropped by 9.4% in the first quarter of 2011 year-on-year, and by 5.2% in comparison with the last quarter of 2010. In this context, Georgi Pavlov, executive director of Address Real Estate said that 96% of the deals carried out with his company over the past few months were sealed at what he called "attractive prices." The entrepreneurs who took part in the discussion agreed that in this respect the market is expected to recover in the next few years.
According to recent data from Property Partners BG, the prices of residential property in Sofia averaged between 820 and 850 Euro per square metre for the first quarter of 2011, down by around 100 euro per square metre from the second half of 2010. In their latest market analysis, Managing Partner, David Livingstone says, "The worst is behind us, prices have reached the bottom of the curve and there are signs that buyers are returning to the market, picking up bargains before prices increase again."
Related articles:
Bulgarian Property Prices Reach Their Baseline
Time to Buy in Bulgaria's Recovering Property Market
Bulgaria Gateway Property Market Analysis - Q1 2011
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