2009 is a key to restarting of the real estate market
09.02.2009
"2009 is a key to restarting of the real estate market and this is a return to restart foundations on the market. The good news is that the market will return to the same standards that were rusty until last year, said at a press conference today Atanas Garov, CEO of consulting company Colliers International Bulgaria. According to him, from the viewpoint of consumers in 2009 will be "a good season to buy a home" because of increased supply and lower prices.
2008 we presented a record and a twist - the peak was reached in the growth of prices and then had a turn, he summarized the development of the market last year.
In particular the residential sector in Sofia in the second half of 2008 registered a slight decline in bids in almost all districts of between 2 percent and 8 percent versus the first half of the year, said Garov. Exception "Iztok", where 5 percent growth. Decline in prices was registered in the prestigious neighborhoods in the capital. Most significant, it is "Lozenetz" - 8 percent compared with the first half of 2008. About the "Ph.D. garden" "square in Ivan Vazov" reduction is 2 percent.
Throughout 2008 the movement of prices is still upwards, but the company expects a reduction in prices that started in recent months to continue this year or at least during the first half. For 2009 is expected to fall does not exceed 10-12% compared to its beginning.
Despite reduced average bids of square meters in the capital remain above 1000 euro, the data suggest the company.
The rental market for housing in Sofia offer levels remained stable during the second half of 2008 most prestigious neighborhoods note 1 percent decrease in prices, while "Ivan Vazov " it is 3%. Rents around the "garden and Ph.D." "Lozenetz" has increased slightly, respectively, reaching € 8 /sq.m and
6.8 euro / sq.m. per month, shows data from the annual report of the company. Because of the limited bank lending observed strong reduction in demand for housing purchase in the last few months of 2008 if before the crisis self-involvement of borrowers was around 10-20% at the moment is between 30% and 50%, that is now to obtain bank financing as about 50-70% of the value of residential property, add Mr Garov.
The total volume of housing loans granted has decreased by 80% annually (in November 2007 - November 2008) to 82 million and the average size of the interest rates on housing loans has increased by 1-2 basis points indicate data company.
It is expected that the supply of new projects also fall in the future, but the moment has started with projects that can not stop now (the completion of a project takes on average two years), indicating Mr Garov.
Investors looking for new ways to stimulate demand by offering such payment to 3 years.
There is a danger that some projects remain incomplete due to lack of funding, Garov comment in response to media questions. "This danger has always existed, just now is more sensitive," he explained. His advice to buyers is to check what is the financial soundness of the contractor.
Determining the success of a property on the market are generally the most important things for housing - infrastructure, location, access, design of the project stated in the report. Demand for medium and high class housing will continue to decline, as potential buyers will have difficulty accessing financing. The market will move primarily by those able to pay in cash and options for the leasing schemes and other similar payment provided by builders and investors.
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