Alongside numerous analyses from local experts identifying positive indicators in the property market, data from Business Monitor International's 'Bulgaria Real Estate Report 2011' now confirms that Bulgaria's real estate sector is currently experiencing a limited recovery.
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"Bulgaria's real estate sector has experienced a startling downward trend in recent years as the value of property has plummeted led by a dearth of demand. Early data from the first two months of 2011, however, suggest that a return is on the way", the report says.
It cites data that an average of 1550 property auctions took place a month in January and February 2011, compared with a monthly average of 750 in 2010. The rise was due to increasing numbers of non-performing mortgage loans and old tenders without buyers in the country. This increase is expected to increase accessibility to lower-priced properties in Bulgaria
The real estate sector has experienced a small upturn in recent months, which suggests that Bulgaria is likely to see an increased supply of new residential, office, retail and industrial space over the coming years, according to BMI.
A key prediction of the report is that yields will remain broadly stable over the short term but the market has some way to go to recover before experiencing anything like the growth of the previous decade, BMI points out.
In terms of macroeconomics, the view that Bulgaria would experience a more robust return to economic growth has played out sooner than expected, with the country's economy registering significant recovery in the final quarter of 2010, posting real year-on-year growth of 2.1%.
It cites data that an average of 1550 property auctions took place a month in January and February 2011, compared with a monthly average of 750 in 2010. The rise was due to increasing numbers of non-performing mortgage loans and old tenders without buyers in the country. This increase is expected to increase accessibility to lower-priced properties in Bulgaria
The real estate sector has experienced a small upturn in recent months, which suggests that Bulgaria is likely to see an increased supply of new residential, office, retail and industrial space over the coming years, according to BMI.
A key prediction of the report is that yields will remain broadly stable over the short term but the market has some way to go to recover before experiencing anything like the growth of the previous decade, BMI points out.
In terms of macroeconomics, the view that Bulgaria would experience a more robust return to economic growth has played out sooner than expected, with the country's economy registering significant recovery in the final quarter of 2010, posting real year-on-year growth of 2.1%.
Related articles:
Bulgaria's Sofia Property Market Back on Track
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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