Speculative purchases are back in the housing market in Bulgaria
With the decrease in housing prices in the country and the emergence of a growing number of lucrative offers to sell, market, which was easy for most part of last year, began to brighten in the first three months of 2010
Details of Address Real Estate show that most interested in attracting small area of new apartments at a price of 25 thousand euros.
These first signs of increased activity in the market, albeit slowly began to return and interest from the speculative players, the experts evaluated as a positive signal to the market.
A variety of factors that affect the housing market in Bulgaria, was a prerequisite for diversity in the group market participants in the first quarter, the company said.
Emerged two main groups of buyers. The first is that the buyers between 25 and 30 years of age who used a mortgage to buy an apartment in order to acquire property in the period of low prices. Another group of buyers is that of 40-50 year olds, investment-minded players. The return of speculative interest in this part is a good sign for the future of the real estate market, especially if maintained over time. The increase in the number of these transactions will provide the industry dynamics, it needs.
Among those who buy the first house, dominated by employees of companies in the information technology sector, where incomes remain despite the crisis, and bank employees who have preferential financing arrangements. Thanks to the activity in the first quarter and concluded transactions at high levels - 100 -120 thousand thousand. Not a single student and transactions for which parents are buying homes.
Our compatriots working abroad, appear timid estate market in Bulgaria, attracted by lower prices and encouraging signs of the first exit, which occurred in Europe.
The decline in the rental market, however, continue to be strong during the period witnessed a large number of transactions at very low levels, the company said. For example, given a deal for housing with an area of about 75 square meters in the city center for 210 euros a month deal for 1.8 euros per square meter for brick apartment in Sheep fonts. Premises with an area of 120 square meters, designed for coffee then, is attributed to the attractive price of 600 euros. Nearly 50 square meters Doctors in the area of the garden are hired for only 100 euros and two-bedroom apartment near the Medical Academy is committed to 180 euros.
Renegotiation of power and levels of market rents during the quarter. Those landlords who tried to retain the original tendered price that did not meet the expectations of the tenants have failed to conclude a transaction and their homes were left empty. An example of this trend is giving penthouse area of 110 square meters in area treatments. He was initially bidding for 500 euros, but then the price began to fall and the transaction was concluded on the ˆ 350 monthly rent, the company indicated.
Varna attractive prices were a reason for the conclusion of over 90% of transactions. Much of the vendors retreated from the very high initial prices quoted. An example is the brick house in Levski sold for 70 thousand euros in initial cost 120 thousand euros - a discount of over 40%. Most Wanted rent in the seaside capital does is about 200 euros, this amount usually can be rented brick property between 55 and 65 square meters
The company has forecast that the tendency to shy and symbolic appreciation of the property can begin to be felt only in the third, even fourth quarter of 2010 \"This will happen only and only on condition that the economic situation in Bulgaria has improved and appears universal sense of stability of income. \"said Tsvetelina Taseva, executive director of Address.
Published on 2012-05-22 10:17:22
Source: Investor.bg
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