The Property Market in Bulgaria is Rising
The housing market in Bulgaria is among the fastest growing in the world, shows the ranking of consulting company Knight Frank, which examines 55 markets. According to Eurostat data consultants put our country in 12th place in the growth of prices — an increase of 8.8% in the last quarter of 2016 compared to the last of 2015 and 1.6% compared with the previous quarter.
Meanwhile, the average growth in house prices of all included in the analysis 55 market has reached 6% annually in the last three months of 2016 compared to 4.1% for the same quarter of the previous year.
In the European Union
Bulgaria ranks the fifth position in appreciation after Malta, Lithuania, Estonia, and Germany. Leading the ranking for the period October — December 2016 is Iceland with 14.7% annual increase in prices and 4.1% for the quarter. The country tops the list for the first time.
Second is the New Zealand with an increase of respectively 12.7 and 3.2%. Malta is third with a growth of 12.4% YoY and 4.9% for the quarter. Top 10 fastest-growing housing markets in the world are complemented by Canada, Turkey, Lithuania, China, Estonia, Germany, and Norway.
Ukraine remains the weakest market in the world with an annual price decrease of 10.2% over last quarter and a decrease of 3.1% from the previous quarter. Secondly, a drop is Taiwan with a reduction of respectively 6.5% and 1.7%, and the third is Singapore with 2.6% and 0.8%. Top 10 weakest markets are complemented by Cyprus, Morocco, Italy, Greece, Japan, Brazil and South Korea.
Most EU countries are among the countries with moderate and weak growth — from 1 to 5%. In most markets account or stability or growth rates despite political and economic uncertainty. This year
expected growth and
and tightening monetary policy, which will probably reduce the gap between the strongest and weakest performing markets, experts predict.
Nearly 200 million. Lev new loans were withdrawn by banks and invested in real estate in Bulgaria in 2016, according to the National Bank. According to them last year, mortgage loans rose by 2% and more than 8.8 billion. Lev.
This means that only through downloaded credits are bought properties for nearly 180 million. Lev. Together with previously initiated but finalized last year and deals with those concluded with ready money without the borrowing, the property market turning nearly 1 billion. Lev, say brokers.
For increased interest in buying homes spoke of their appreciation. Realtors reported double-digit growth in demand and prices in Bulgaria in the second half of last year. This happened
for the first time 10 years
For six months housing increased by 12%, according to the Association of Realtors.
In the capital, the average price per square meter is about 1000 euros. The most sought after were smaller apartments — for example up to 60 so. Meters. Homes with two or three bedrooms are sought mainly by families who were willing to buy and to a non-prestigious neighborhoods.
In Sofia, the greatest interest enjoyed neighborhoods along the southern arc — from “Mladost” to “Ovcha Kupel”, including gated communities overlooking the Vitosha mountain. Interested buyers are and neighborhoods “Banishora”, “Iztok”, “Cross vada”, “Vitosha”, “East” and all areas with existing or under construction subway lines.
According to the Registry Agency and demand were large and in Varna, where the increase in the number of transactions is almost 32%.
In Plovdiv the trend of growth, but a little more moderate — by 8.75%. Following Bourgas and Rousse respectively with almost 5 and 4% growth. Following the major cities, with between 1,000 and 1,500 deals for October to December, last year are Yambol, Pazardzhik, Stara Zagora, Sliven, Kazanlak and Veliko Tarnovo /Main Bulgarian cities/
At least Deals — between 30 and 50, for the last quarter were concluded in cities like Tran, Ivaylovgrad, Malko Tarnovo Zlatograd Municipality.
Because of low-interest rates on deposits primarily
- after the purchase can be rented. In these cases, buyers were more demanding and do not rush to the conclusion of a deal.
In order to seek investment homes and new construction in areas where there was a large number of potential tenants. According to brokers the policy of banks to cut rates on mortgage loans and has transformed the market and demand has increased by 30%.
New construction projects have tried to respond to increased demand, while 25% of buyers moisture in the property even with the start of construction, although transactions “green” are considered relatively risky. Forecasts for this year are that prices will persist and may even slightly increase.
1.6 trillion euros will spend on real estate in the world
This year, only in real estate in the world will be invested 1.6 trillion. This according to a report from the consulting company CBRE.
Higher income from investments in real estate is still the main driver of interest in the sector, the company said. The most preferred region was North America.
The most popular for house purchase were cities like London, Los Angeles, and Sydney, and the most attractive market segment are office space, logistics property are also becoming increasingly popular.
Most investors indicated that this year will either have more capital to invest in property compared with 2016, or at least the same. Only 16% of respondents intend to reduce their investment in real estate.
Despite the unstable political environment globally and upcoming elections in France and Germany property investors remained relatively calm. Their main concerns are related to the emergence of new economic shock and faster than expected growth rates.
Experts point out that at the same time last year investors were pressured by the uncertainty in the capital markets, but now shares rose, while economic confidence increased. However, there is uncertainty about where it will focus on economic policy, most expectations are changing to unblock growth.
The report of the consultants stated that the debts of developing economies seem problematic and the financial situation in Greece.
According to the survey tend to buy prime assets, and quality second- will be paid partly in 2017, growing interest in the assets that are considered unattractive, but they are undervalued and have great potential for appreciation. Almost half of investors expressed concerns over the prices of lead markets.