Slight Signs Of Recovery In Bulgaria Property Market
News Posted On: 08 May 2012
It doesn't take much to qualify as signs of recovery these days, especially “slight signs of recovery” which is what is currently being reported of the property market in Bulgaria. This is based mainly on a Colliers International report that investment in the fourth quarter of last year reached €186m ($246 million U.S.), the highest level since 2008, this coupled with reports from local agencies that transaction levels last year increased by around 22%, are behind the reports of a market that has bottomed.
However, one needs to mention the fact that last year's transactions included the sale of the Sofia Mall in a transaction worth 55% of the year's investment volume, without that the investment volume would have been less than half of the highest level since 2008.
Another possible “buy signal” being put forth is the fact that prices were flat in the first quarter of this year compared to Q4 2011. Could this be what the investors waiting on the wings and saving their cash in the banks be waiting for? We ask.
But the answer is that it will likely take a lot more than that to bring back confidence in this market.
On the other hand Bulgaria, like Ireland has been almost a construction-free zone since the crash, and it is possible that the over-supply could be absorbed at the current tragically low prices, but what is lacking is confidence. Confidence to buy and confidence for the banks to lend are the two vital ingredients that seem, as yet to be lacking from the Bulgarian real estate recovery, if they can be found then a recovery could indeed be on the cards.
Written by Liam Bailey
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