People with cash money purchase Sofia properties and equipment
People who have cash money plan on investing them in Sofia apartments and in new equipment and furnishing like washing machines, dryers and refrigerators. A real boom in the purchases was seen in the days before Christmas. Since the beginning of the crisis and after the banks have tightened the lending of money, cash is the main driving force of the property market in Sofia. In the last year nearly 90% of all transactions were in cash. Recently, the share of bank loans increased to about 20-30 per cent. The people who have cash money prefer to take good Sofia properties in terms of location and quality and branded products when it comes to equipment and technics.
The predictions for year 2010 are that the property prices in Sofia will continue to fall. According to the real estate agents, the market will see increase in the number of transactions for quality properties in Sofia. It is believed that the quality projects will keep their prices and attract demanding customers. The need of first or new home will be the leader in the real estate purchase market. The branch is hoping to invigorate the market thanks to the emergence of attractive bank loans with lower interest rates than the ones available now.
Year 2010 may prove to be a key factor for the Sofia holiday homes that are located in central areas and are being rented. The housing market is the largest and busiest in the capital Sofia, even in the crisis. House prices are expected to fall slightly until the summer. The decline however, will only be for the unattractive properties and their price is expected to decrease with additional 5-10%. According to several real estate agents there will be a slight increase in the property prices after the summer. The number of deals is expected to grow in the second half of the new year if the banks make loans more affordable. In case the financial institutions start to grant loans more easily, some real estate prices are expected to go up gradually in the second half of 2010.
