Eurozone Entry: Implications for Bulgaria's Real Estate Sector
Amidst the backdrop of Bulgaria's dynamic real estate landscape, all eyes are on the potential impact of the country's imminent entry into the Eurozone
HOT: » Assessing the Legacy of Bulgaria's "Denkov" Cabinet: Achievements, Failures, and What Comes Next
Data shows Bulgaria's real estate sector is experiencing a limited recovery, according to the "Bulgaria Real Estate Report Q3 2011" of Business Monitor International (BMI).
"Bulgaria's real estate sector has experienced a startling downward trend in recent years as the value of property has plummeted led by a dearth of demand. Early data from the first two months of 2011, however, suggest that a limited return is on the way," the report says.
It cites data that an average of 1 550 property auctions took place a month in January and February 2011, compared with a monthly average of 750 in 2010.
The rise was due to increasing numbers of non-performing mortgage loans and old tenders without buyers in the country. This increase is expected to increase accessibility to lower-priced properties in Bulgaria
Although the real estate sector has experienced a small upturn in recent months, Bulgaria is unlikely to see substantial supply of new office, retail or industrial space over the coming years, according to BMI.
The report prediction is that yields will remain broadly stable over the short term. The market has a long way to go to recover before BMI sees anything like the growth of the previous decade, it points out.
In terms of macroeconomics, the research's view is that Bulgaria would experience a more robust return to economic growth has played out sooner than expected, with the country's economy hitting its stride in the final quarter of 2010, posting real year-on-year growth of 2.1%.
"However, a fundamental improvement in Bulgaria's economy has yet to be seen that would prompt BMI to upgrade the report forecasts and therefore the 2011 real GDP growth expectation is left virtually unchanged at 2.7%," it says.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
Bulgaria has witnessed a remarkable surge in home loans at the beginning of the year, with loans for households for the purchase of houses and apartments reaching a record high of BGN 20.52 billion by the end of February
The housing market in Bulgaria witnessed mixed trends in the fourth quarter of 2023, with overall prices experiencing a modest increase of 1.2%
Bulgaria witnessed a staggering surge in mortgage loans in 2023, totaling a monumental BGN 6.39 billion
Amidst the backdrop of Bulgaria's dynamic real estate landscape, all eyes are on the potential impact of the country's imminent entry into the Eurozone
This information was shared during the presentation of data on the current state of the market to journalists
Russia has issued a stern warning in response to Bulgaria's recent legislative efforts aimed at seizing Russian real estate
UN Happiness Report: Bulgaria's Astonishing Leap in Rankings
Bulgaria: 3 Regions With Lowest Life Expectancy - EU Report 2022