New home credits give hope on the Sofia apartments market
The housing loans continue to tempt people under the influence of the offers of banks in Bulgaria, which are now aggressive again, bringing hopes that stabilization of the property market is certain. In December 2009, the bank institutions gave more mortgage loans when compared to the previous month and reached the highest level since March 2009. That growth is connected with the increasing competition and diversity in terms of loan offers, as well as with the reduction in the interest rates.
After the record drop of these home credits in Sofia city in the end of 2008, the average monthly volume of loans has increased by 7% in the second half of year 2009. One of the banks that operate with success in Sofia, Unicredit Bulbank predicted that housing loans will be the main driver of the credit growth in the next two years and will increase to 5 % per year. The bankers agreed that it is important for the institutions to continue the financing of the new housing purchase, especially in projects that they have funded. The interest on loans in the offers have made new reductions in January and people with above average income in Sofia City remained the active users.
The Sofia apartments prices are stabilizing. The average price per square meter fell with 2 % to 5 % since the beginning of the year. At the same time, the business people are making their best to help the financing and to improve the number of the extras that come with each Sofia apartment and even reduce the price, aiming to find buyers. In other words, both the banks and the entrepreneurs are courting the Sofia property investors. For the future of this market however, is also important how compliant the buyers will be.