Sofia 2009: owners eager to sell or rent, bargains for cash buyers
With the end of the first month of the new year, the property market experts are moderate in their pessimism and still uncertain about the future of the sector. The situation now is not that there will be a drop in the prices of the Sofia apartments, but rather which is the percentage to which this drop will go. The crisis situation however has one positive aspect and this is the possibility it brings in itself. The overcautious policy of the banks which are not willing to give mortgages comes to show that year 2009 will be promising only for the cash buyers who have savings and families who need a new home and who can present a great deal of the money.
At the same time, the quality of Sofia apartments’ construction is increasing in defiance of the crisis. The leaders in the building construction in Sofia are unanimous that the quality of the construction in Sofia should keep its high levels despite the current financial situation. This tendency is considered wise and is believed to have a long-term effect over the Sofia realties market as when the location is right and the construction is properly done this will increase the potential of the investment made. Very often the buyers are foreigners who wish to move to the country at some point or young local families who are looking for a home for their children.
The big building companies agree that the market situation presupposes slower pace in the construction and completion but not canceling of the projects that have already started. They also agree that the crisis is to be considered positive for the capital; prevailing it from the faith of the resorts along the seaside and the ski resort of Bansko and the process of over construction. When all sectors are reducing the expenses, the building companies should increase them with additional materials of higher quality. This increase in the cost price of the construction will bring a serious increase in the quality of the properties and will finally result in more sales as people are eager to buy a different, better product.
The prognosis is for a drop in the price of the low-quality apartments and in those new complexes which are set in residential areas with no or with bad infrastructure. The experts remind that in time of crisis the properties that are purchased are those which have strategic location, excellent infrastructure and plenty of green areas around. That is why the cash buyers are now in the position to scrutinize the properties precisely and chose carefully. They also have to keep in mind that the sellers are willing to offer discounts which could reach up to 15 %.
