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Sofia property market or what is going on

2010-02-22 14:14:47

The revival of the Sofia market is expected to happen after a period of eighteen months. Unlike last year's drop in prices, this year the drop is expected to be at a slower pace and is expected to stop at the levels reached in the period March – June. The Sofia apartment market is seeing a movement in which is resulting from the lower prices, the slight decline in the interest rates and the easier access to mortgage options. For example, the neighborhood ‘Lozenets’ faced a decline of almost twenty percent in the prices of Sofia apartments, while the neighborhoods of ‘Ivan Vazov’ and ‘Iztok’ goes to twenty-four to twenty-two percent for the districts of ‘Reduta’ and ‘Slatina’.

The Sofia apartment market is seeing a movement in which is resulting from the lower prices, the slight decline in the interest rates and the easier access to mortgage options.

Agents believe that the restoration of the market will come first in the luxurious segment of the Sofia market. The predictions are that in the second half of year 2010, the market will complete the process of self-regulation and will establish solid market prices.Currently there are fewer new projects and many unfinished ones. All Sofia property deals are being quite difficult and at lower levels, achieved after long negotiations and various compromises from the side of the seller. The main demand for Sofia accommodation is concentrated on the properties below the sum of 1000 Euro/sq.m for a fully completed properties and more flexible payment schemes. According to the data presented from one of the largest agencies in Sofia, property investors are looking for 1-bedroom Sofia apartments with solid construction, good infrastructure of the region and price of around 50 – 55 000 Euros.

The prognosis for the second half of the year are also connected with a drop of ten percent in the prices of all residential properties in Sofia. The expectations for the real estate market is that the start of the year will be relatively difficult, but then when the economic parameters improve, this will lead to a positive effect on the real estate sector.