Saturday, 19 September 2009

A little better


Bulgaria's property market has registered an August increase of 2% to 3%, the Chair of the National Real Estate Association, Lachezar Iskrov reported.

Iskrov spoke Thursday in a special interview for Darik radio.

According to the Chair, property prices have ceased to go down, but will maintain their current level for quite a while and the real estate values would reach their pre-crisis numbers in five to six years from now.

Currently the average price for residential properties in the capital Sofia is between EUR 750 and 950 per square meter. In the Black Sea cities of Varna and Burgas the values are 5% to 10% lower while the prices are the lowest in Bulgaria's second largest city, Plovdiv - between EUR 550 and 750 per square meter.

Iskrov also pointed out that the minimal reduction of mortgage interest rates was not going to contribute to a further market revival since the banks still grant loans under conditions that are too restrictive.

The National Real Estate Association Chair said that he expects a price reduction for lands used for construction since they have been overpriced in last years, but the demand has been almost non-existent lately.

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