Blog: Sofia Real Estate Market prediction for the coming 2010

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Sofia Real Estate Market prediction for the coming 2010

2010-01-29 11:17:58

In year 2009 Sofia market faced permanent process of decrease in the property prices; high demand for bargain offers and limited bank financing and thus most deals were paid with cash money. The cash buyers were closely following the market, which gave them the option to react very fast when a bargain offers came on the market. Because of the economic crisis which was strong and the overall insecurity of the income of the people, many buyers postponed the purchase of a Sofia apartment for the months to come.

The cash buyers were closely following the market, which gave them the option to react very fast when a bargain offers came on the market.

When there were deals for Sofia apartments, these deals were signed at an average price of 1000 Euros/sq.m in the beginning of 2009, reached 950 Euros/sq.m in the mid of the year and then raised a little during the last quarter of the year. This resulted in a 20 % drop in the Sofia apartment prices, if compared to the same Sofia accommodation units in the year before that.

The natural question that comes is what will happen in the current 2010 year. The prognoses are that the prices will reach the bottom, a process which will result in price stabilization after that, followed by an increase in the Sofia property deals. This means that the market will recover when the economy of the country recovers. This however will not happen overnight and a few months will pass before the Sofia market prices stabilize. The properties in Sofia that will keep the interest of the investors are the quality apartments and their prices will slowly go up. After the prices are regulated, this will be followed by an increase in the number of deals.