Real estate agencies expect the upward trend of house prices in Bulgaria to continue in 2008, albeit at a slower pace, Kapital Weekly reports. The largest residential properties market, Sofia, will not reach saturation point soon.
"I believe that price growth will slow down, but there is no chance of prices dropping because the market is still in a desperate need of homes," said Blagovest Baldev from Adaptconsult agency, as quoted by Kapital. Baldev expected prices to rise by 10-15 per cent this year. The biggest price hikes are expected for residential units in suburban areas, especially those of higher quality, while panel apartments' prices will slow.
"High demand is a thing of the past and now we will see high supply. We expect a 20 per cent increase in Sofia's residential stock and 15 per cent in the country," Mladen Mitov, from Yavlena agency, said.
At the same time, customer requirements for residential properties remain as before. Most customers buy with investment purpose, prizing good location as the most important factor. Small apartments are preferred despite the price hike.
But in the coming years, the increased supply of large scale projects will dictate market trends. Investors' interest has already turned towards peripheral areas developments, satellite villages and gated complexes. Construction quality will become a major factor for clients, Kapital weekly concludes.
