ROI in Bulgaria Residential Property Hinges on Sale Price - Report
Business | March 21, 2008, Friday
Rental levels for two-room flats, which are in the heaviest demand, increased by 4% in the period from December 2007 to March this year, according to a report of the Bulgarian economic think-tank Industry Watch. Photo by Yuliana Nikolova (SPA)
Return on investments in Bulgarian residential properties is getting more and more dependent on the fluctuations in the sale price than on rental yields, says a report of the Bulgarian economic think-tank Industry Watch.
The report covers the residential market development in the country during the first three months of 2008.
Rental levels for two-room flats, which are in the heaviest demand, increased by 4% in the period from December 2007 to March this year.
The sale prices of residential buildings are recording a faster growth, extending the period during which an investment pays out from 188 to 234 months as a ratio between the purchase price and the rental levels.
According to Industry Watch the credit crunch in the United States has had a negligible impact on the property market in Bulgaria, but negative influences have not been ruled out in the long term.
Industry Watch forecasts a slow-down in the flow of foreign investments in real estate.
Average annual growth in sale prices is set at 13-14% in the next five years.
The report covers the residential market development in the country during the first three months of 2008.
Rental levels for two-room flats, which are in the heaviest demand, increased by 4% in the period from December 2007 to March this year.
The sale prices of residential buildings are recording a faster growth, extending the period during which an investment pays out from 188 to 234 months as a ratio between the purchase price and the rental levels.
According to Industry Watch the credit crunch in the United States has had a negligible impact on the property market in Bulgaria, but negative influences have not been ruled out in the long term.
Industry Watch forecasts a slow-down in the flow of foreign investments in real estate.
Average annual growth in sale prices is set at 13-14% in the next five years.
» Subscribe to receive alerts by email for any of these keywords.
Share:
