Bulgaria's real estate market - maturing
 |
 |
 |
 |
Bulgaria's real estate market - maturing
BULGARIA’S real-estate market has become more mature, with still-rising prices but gradually dropping returns on investment.
This is the main conclusion made by the participants in this autumn’s Real Estate Expo held in Sofia from October 21 to 23. The exhibition, first held a year ago, has turned into the largest such show in the Balkans.
No sharp rise in property prices is expected in the Bulgarian market next year, real estate agents said at the exhibition.
The market is balanced and is gradually evolving into a customer market, especially the market in residential properties and holiday homes. The return on investment in the sector is 12-13 per cent compared to 6.8-10 per cent in Western developed countries. Even if prices go up, the increase will be a small one and due to expected inflation.
There is an imbalance only in the office and industrial estates market where demand exceeds supply. That is why this segment of the market is rather investor-driven. Only there, a more visible price increase is expected in 2006.
Bulgaria and Romania are South-Eastern Europe’s leaders by profitability in office and industrial property. The figures are 9.5 per cent and 10 per cent for Sofia and Bucharest respectively.
Bulgaria and Croatia are the undisputed leaders in the region in the market of holiday homes.
As far as the market of commercial estates is concerned, supply is coming close to demand, real estate agents said.
More than 100 leading developers, real-estate agents and financial institutions took part in Real Estate Expo this autumn 2005. Projects in the design and development phases, worth more than a billion euro, were shown to the visitors.
The largest part of the projects presented at the expo was holiday villages and single properties. Most of them are on the Black Sea coast, but a significant increase in supply has been registered also in winter resorts Bansko and Pamporovo.
The exhibition also outlined the development trends for the residential properties market in Sofia, the capital. Builders, investors and real-estate agencies have been signalling in the past year that due to the lack of free terrain in the centre of the city, construction work has moved to the suburbs, an example being the expensive ones on the slopes of Vitosha Mountain.
However, the underdeveloped infrastructure and communications there are gradually turning into a serious problem for projects’ completion.
Another important conclusion was that Bulgaria’s residential property market had not yet become attractive enough for largest foreign investors. Brokers pointed to countries like Poland, Hungary and the Czech Republic, where big Israeli investors, for example, were building residential complexes with 100 or more apartments, with the aim of managing and renting them out.
National Statistical Institute (NSI) data published on October 21 showed that Bulgarian housing prices in the third quarter of 2005 rose by 2.9 per cent compared to the previous quarter of 2005.
The average housing price rose to 751.50 leva a sq m between July and September, up from 730.50 leva in the previous three-month period.
The prices are expected to keep rising at the existing pace in the forth quarter, and the year to end with prices 5-7 per cent higher compared to end-September. The growth will be driven by price rise of the construction materials, the higher fuel prices and the increased wages in the sector.
In August alone, prices of non-metals and construction materials rose by 24.8 per cent year-on-year, while oil product prices in the country rose by 14.85 per cent between May and August, the latest NSI data showed.
In the third quarter, housing prices were the highest in Sofia at 1256.80 leva a sq m, a rise of 5.8 per cent compared to end-June.
The Black Sea city of Varna was second, at 1192 leva a sq m, down by 4.5 per cent. It was followed by the second largest coastal city, Bourgas, at 1142.20 leva a sq m, representing a 2.6 per cent growth.
www.sofiaecho.com
More news:
Realtors: Bulgaria housing price growth to slow in '08
Real Estate Developer Plaza Centers Enters Bulgaria
Bulgaria Boasts Europe Highest Rate of Property Ownership
Real Estate Firm Launches High-end Residential Project in Bulgaria
Landmark buys Hyundai office center in Sofia in 22 mln euro deal
Raiffeisen Leasing Bulgaria woos foreign second-home buyers
Bulgarian Land launches pre-sale stage of second Northern Black Sea development
Bulgaria housing prices rally still going strong
European Convergence signs Bulgaria retail park deal
BULGARIA'S CAPITAL EXPERIENCES TRADE COMPLEX CONSTRUCTION BOOM
Industrial Property Demand and Supply Grow in Bulgaria
Buyers prefer southern Sofia
PROPERTY SALE AND RENT PRICES IN BULGARIA’S CAPITAL EXPERIENCE DIFFERING TRENDS
PROPERTYWISE FOCUSES ON ALTERNATIVE PROPERTY DEVELOPMENTS IN BULGARIA
NEW TENDENCIES IN BULGARIA’S RETAIL PROPERTY MARKET EXPECTED
FOREIGN PROPERTY INVESTORS TO SHOW INCREASING INTEREST IN BULGARIA'S BOROVETS- REPORT
NEW COMPLEX TO OFFER 900 NEW RESIDENTIAL UNITS IN BULGARIA'S CAPITAL
40-STOREY CONSTRUCTION TO BE BUILT IN BULGARIA’S CAPITAL
Residential Prices in Sofia to See Short-Term Stability
High-End Residential Construction Most Intense in Southern Sofia
PROPERTY FOCUS: Bulgaria's Bansko, buildings and booms
ImotiBG - VACATION PROPERTY MARKET IN BULGARIA’S CAPITAL SEES RE-DISTRIBUTION
ImotiBG - Foreigners Gain Property Rights on Local Land
ImotiBG - LOCATION AND EU ACCESSION TO BOOST BULGARIA'S INDUSTRIAL PROPERTY MARKET
MODERN OFFICE PROJECTS RELOCATE TO BULGARIA’S VARNA AND PLOVDIV
STORAGE AREA DEMAND IN BULGARIA EXCEEDS RESIDENTIAL PROPERTY SEEKING
PROPERTY FOCUS: Interest of Bulgaria's home purchase loans remains high
MODERN OFFICE PROJECTS RELOCATE TO BULGARIA’S VARNA AND PLOVDIV
STORAGE AREA DEMAND IN BULGARIA EXCEEDS RESIDENTIAL PROPERTY SEEKING
ENTERTAINMENT PROPERTY PROJECTS IN BULGARIA HAVE POTENTIAL, RETAIL MARKET SATURATED SOON
PROPERTY FOCUS: Interest of Bulgaria's home purchase loans remains high
RUSSIANS SHOW INCREASING INTEREST IN BULGARIA’S PROPERTY SECTOR
OFFICE PROPERTY MARKET IN BULGARIA TO CONTINUE GROWING REPORT
INFLATION IN BULGARIA 1.5 PER CENT IN JANUARY 2007
Banks in Bulgaria report 2006 results
NEW BUILDINGS REPLACE OLDER PROPERTY IN BULGARIA'S CAPITAL
PROPERTY AGENCIES IN BULGARIA EXPECT PRICE DECREASE
Construction Boom in Bulgarian Winter Resorts
PROPERTY PRICES IN BULGARIA TO CONTINUE INCREASING GRADUALLY
NEW TENDENCIES IN BULGARIA'S VACATION PROPERTY MARKET
PLOT PRICES HIGHER IN BULGARIA'S SOFIA AND VARNA
MIGRATION AND HIGH DEMAND CAUSE PROPERTY PRICE INCREASE IN BULGARIA
SOFIA RESIDENTIAL PROPERTIES PRICE 20% HIGHER
Real Estate Prices in Bulgaria Up 20%
Bulgarian Disposes of 10 M2 Office Space
Real Estate Fund Bulgaria buys 355 ha of agricultural land
Property Prices to Soar in Bulgaria, Spain Top Destination
Bulgaria Leader in Real Estate Yields
The Rise and Rise of Bulgarian Property
Sofia Mayor Appoints New Top Architect
Latest offers:
For rent Maisonette in town Sofia - Lozenec 700 EUR
For rent Apartments 2 Bedroom in town Sofia - Lozenec 720 EUR
For rent Apartments 2 Bedroom in town Sofia - Centre 650 EUR
For rent Apartments 2 Bedroom in town Sofia - Manastirski Livadi 1400 EUR
For rent Apartment more Bedroom in town Sofia - Manastirski Livadi 1650 EUR
For rent Apartments 2 Bedroom in town Sofia - Izgrev 1400 EUR
For rent Apartments 2 Bedroom in town Sofia - Izgrev 940 EUR
For rent Apartments 2 Bedroom in town Sofia - Izgrev 980 EUR
For rent Apartments 1 Bedroom in town Sofia - Izgrev 600 EUR
For rent Maisonette in town Sofia - Lozenec 700 EUR
For rent Apartments 2 Bedroom in town Sofia - Lozenec 700 EUR
For rent Apartments 2 Bedroom in town Sofia - Lozenec 2000 EUR
For rent Apartments 1 Bedroom in town Sofia - Iztok 500 EUR
For rent Apartments 2 Bedroom in town Sofia - Iztok 600 EUR
For rent Apartments 2 Bedroom in town Sofia - Vitosha 600 EUR
For rent Apartments 2 Bedroom in town Sofia - Centre 850 EUR
For rent Apartments 2 Bedroom in town Sofia - Studentski grad 700 EUR
For rent Apartments 2 Bedroom in town Sofia - Lozenec 570 EUR
For rent Apartments 2 Bedroom in town Sofia - Centre 700 EUR
For rent Apartments 2 Bedroom in town Sofia - Ovcha kupel 400 EUR
For rent Apartments 2 Bedroom in town Sofia - Ovcha kupel 430 EUR
For rent Houses Cottage Chalet in town Sofia - Dragalevci 3500 EUR
For rent Houses Cottage Chalet in town Sofia - Boyana 3000 EUR
For rent Maisonette in town Sofia - Lozenec 700 EUR
For rent Apartments 1 Bedroom in town Sofia - Lagera 450 EUR