Housing market flooded by unfinished projects
Many of the housing projects under development in Bulgaria will be halted or never completed in 2009, while others will stay in the pipeline, forecast Atanas Garov, executive director of property consultants Colliers International.
Buyers are opting for homes in an advanced construction stage in order to avoid risks.
However, the market has gathered inertia and so new projects will continue to come out, according to Garov.
Shemes started in the past two years which have attracted financial support will be completed.
In a bid to make up for the harder access to mortgage loans, investors are being more flexible, extending the payment period to three years. We will see in the spring whether the new tactics will manage to thaw the property market, Garov said.
However, property prices will continue to fall, extending a trend that began at the end of 2008. Colliers expects a 10-12% decrease on an annual basis.
Renting stepped into the spotlight after banks toughened mortgage loan requirements, jacked up interest rates and increased co-funging to 50% of the cost of the property.
Wow, it's as if you read US news, only less catastrophic than the US situation.. for now.
The latest rage here Nellie:
Skateboarding in empty swimming pools!
Gangs of youth scan the neighborhoods for the best empty pools (on all the foreclosed homes) to practice. Often they ask permission from the local cops too.
50% more Chinese Tourists in Bulgaria
Potentially Defective Aluminum was used by All Car Manufacturers in Japan