Bulgaria Named World's Strongest House Price Riser

Business | January 6, 2008, Sunday // 00:00| Views: | Comments: 18
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Bulgaria: Bulgaria Named World's Strongest House Price Riser Bulgaria saw the world's strongest house price growth at 30.6% (15.4% in real terms) to end-Q3 2007 from a year earlier, says the Global Property Guide (GPG). Photo by Yuliana Nikolova (Sofia Photo Agency)

Yet another research has pointed Bulgaria as the country with the world's strongest house price growth last year amidst a global cooling of the property market.

The study carried out by Global Property Guide (GPG) said Bulgaria saw the world's strongest house price growth at 30.6% (15.4% in real terms) to end-Q3 2007 from a year earlier.

Shanghai came in second, despite efforts by the Beijing government to cool the market. House prices there rose by 27,85 percent in 2007.

The survey, which provides information for potential property investors, says that while the housing market gained momentum in the Asia-Pacific region, it slowed in Europe and "crashed" in the US.

In Europe most countries registered unimpressive y-o-y house price changes in 2007, aside from Norway and Estonia, the survey shows.

Ireland's house price plunge continued, with a 4.68% y-o-y drop to October 2007. When adjusted for inflation, the drop is more pronounced at 9.1%. The Irish housing market is vulnerable to interest rate changes, as 85% of mortgages are variable rate, GPG comments.

The Baltics performed quite well in terms of house price changes from a year earlier, but the latest quarterly data presents a picture of a region whose housing markets are in trouble.

In Latvia apartment prices have dropped by 7.7% to September 2007, over a quarter earlier. Lithuania's apartment prices have stagnated at LTL 12,500 (US$5,213 or €3,620) per sq. m. in the last two quarters. In Estonia quarterly house prices increased by 23.4% y-o-y to Q3 2007, lower than the 28.6% growth to end-2006.

Norway's housing markets are showing signs of nervousness, despite a strong performance this year. The house price index for the entire country increased 11.6% y-o-y to Q3 2007 (11.9% in real terms due to slight deflation). However, prices in the metropolitan area of Oslo-Baerum fell 0.5% from Q2 to Q3 2007.

Spain recorded 5.31% y-o-y house price growth to Q3 2007, the lowest rate of increase in nine years. Higher interest rates have dampened demand, and banks have become very careful in granting housing loans.

A slow down was also evident in the UK, though less sharp than expected. British house prices increased 9.7% y-o-y to Q3 2007, less than 2006's y-o-y increase of 10.5%. When adjusted for inflation, the house price increase in Q3 2007 was 7.5%, slightly higher than the 7.3% rise in 2006.

House prices in Italy and Greece have also cooled. Mortgages in these markets are predominantly based on variable interest rates.

Although mortgages in Denmark, France and Germany are mostly based on fixed interest rates, their housing markets have nevertheless cooled. Other European countries which experienced house price slow downs are Sweden, Poland, Finland, Netherlandsand Switzerland.

France has increased tax deductions on mortgage-loan interest rates, a measure expected to hold housing demand firm.
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» To the forumComments (18)
#18
DP - 16 Jan 2008 // 17:37:30

Fair enough, Dirk...

#17
Dirk - 16 Jan 2008 // 08:33:04

DP,

=> You showed lack of judgment and lack of trust in your wife's advise.
- It was based on emotions, no analysing for a business.

=> You should have asked people who have invested in BG (foreigners) and not Bulgarians who didn't have a clue about free enterprise system.
- I enqueted both. These came out more negative, but still they convinced me to come. The 1st already bankrupted, another wasn't who he said he was, etc. Bad luck?

=> So far it seems you are too stubborn a person to take a responsibility for his own actions and failure in judgment, always blaming someone else, and strangely refusing to remedy the situation by abandoning this awful enterprise. Many people have lost everything and moved forward. Why can't you?
I do simpathise with you but I find your constant whining annoying, considering the obstacles and hardships most of us have experienced...
- There's some truth in this and not. I can't comment here. We only need a business leader, who can take responsibilities and organise things. That's the big move forward. Everything else is impossible.

#16
CreepyS - 15 Jan 2008 // 21:26:12

Im personally against telling people like Dirk to leave BG if they dont like it.

My impression about the Flemish is that they are hard-working, professional, laconic people who go to work early and spend little time in coffee breaks and gossip conversations, unlike their french-speaking compatriots.

Now, if the Flemish are getting nervous with the Walloons who are more like us but still much better as far as work ethics goes, I can imagine the horror of a flemish guy who lives in a walloon environment at power 3 or more which is BG.

And btw, Dirk did more for BG and for the 30-40 Bulgarians he employed and their families than most of us - even if he closes these people will have a better chance to find a decent job saying they worked for a Belgian company etc.

On the other hand, only DP is doing some valuable charity job for BG, but she is not an ordinary Bulgarian - she is an exceptional one. What the other Bulgarians abroad did for the country? I nothing, some guys "invested" for their own interest, Lazar is still parasiting in Germany.

So be more respectful to people who are actually doing good things in BG cause its not easy.

#15
DP - 15 Jan 2008 // 18:06:10

"I noticed everybody lied about the Bulgarian conditions. My investment was based upon lies."

Dirk,
You showed lack of judgment and lack of trust in your wife's advise.
You should have asked people who have invested in BG (foreigners) and not Bulgarians who didn't have a clue about free enterprise system.
So far it seems you are too stubborn a person to take a responsibility for his own actions and failure in judgment, always blaming someone else, and strangely refusing to remedy the situation by abandoning this awful enterprise. Many people have lost everything and moved forward. Why can't you?

I do simpathise with you but I find your constant whining annoying, considering the obstacles and hardships most of us have experienced...

#14
LarzBGR - 15 Jan 2008 // 17:56:37

It is indeed, resipsaloquitur..;) I get to pay 3 Euros to get my favorite Weizen...
btw, Karneval is almost here, woohoooo:) Superjeile Zickkkkkkk!! Dirk, you are right, there will be a lot of alcohol involved...

#13
resipsaloquitur - 15 Jan 2008 // 17:32:37

Dirk,

I used to take your site ..but you start being more and more arrogant!

LARZBG studies at the UNIVERSITY in BONN,Germany and as we all know "boose" is here very,very expensive.

#12
Dirk - 15 Jan 2008 // 17:09:16

BGtrvlr,

=> We only want your money,
That was already clear...
=> we don't really want you to live here as well!
same here
=> The infrastructure has always been good enough for us and it costs big money and who is going to pay for that anyway?
cavmen

CJB,
=> Do not lose heart! Surely your costs are lower than in, say, Belgium?
Aaah, after behind every problem solved there's another, even bigger obstacle.

CreepyS,
=> Dont you feel any satisfaction from this enterprise? You have done a few things for the Bulgarians you employed and trained so far. I guess it may be frustrating for you to operate in BG but the results from your work are quite positive.
Do you think I get any respect from anyone in Bulgaria? They only blame me for everything, even for snowing...

LarzBGR,
=> you still have time, Dirky! It still isn't totally lost, pack your luggage, sell the company, fire everyone and LEAVE!!! GO FOR YOUR LIFE!!!
Shall I make you an offer, or did you spend it all on booze?

#11
CJB - 15 Jan 2008 // 16:41:31

Dirk,

Bulgaria needs external investors and entrepreneurs like you. It can be disheartening to work in BG, I know that only too well. But it's part of the deal. This is Southern Europe, things in Greece, Southern Italy, Southern Spain are similar. But it's also East, like Romania, Ukraine, Turkey.

The chaos and anarchy is just a special Bulgarian variant of a quite widespread phenomenon.

Do not lose heart! Surely your costs are lower than in, say, Belgium?

#10
LarzBGR - 15 Jan 2008 // 15:44:10

you still have time, Dirky! It still isn't totally lost, pack your luggage, sell the company, fire everyone and LEAVE!!! GO FOR YOUR LIFE!!!

#9
CreepyS - 15 Jan 2008 // 14:15:47

Dirk,

Dont you feel any satisfaction from this enterprise? You have done a few things for the Bulgarians you employed and trained so far. I guess it may be frustrating for you to operate in BG but the results from your work are quite positive.

#8
BGtrvlr - 15 Jan 2008 // 13:58:33

Dear Dirk:

We only want your money, we don't really want you to live here as well!

The infrastructure has always been good enough for us and it costs big money and who is going to pay for that anyway?

Nazdrave ;)

#7
Dirk - 15 Jan 2008 // 12:23:13

Furian,

=> I cannot understand why people will invest in a country with no spesific attractions and a horrible infrastructure ?

Re-analysing my enquete, from before coming to Bulgaria, I noticed everybody lied about the Bulgarian conditions. My investment was based upon lies.
Why did all these people lie to me? Until now, I just haven't found any answer or understanding.
I should have listened to my wife, and stayed out of Anarchia.

In the 5 years, I saw many come and even more go.

Bulgaria has no climate for business, workers, living... maybe for short holidays (again depending on the hotel, personel, etc...)

#6
furian - 13 Jan 2008 // 01:55:33

Yes, Dirk, you are right. The Bulgarian Government is hiding the shortcomings, not only when it comes to the right to own land in Bulgaria. The research used as reference is not made according to statistic verification, but based on informations from realestate agencies. Most Bulgarian agencies experience very low activity in the property market these days with hardly any clients/buyers, but officially they report sales and increasing prices. Why? It is pretty obvious they follow mainstream rules in Bulgaria" It is better to lie and cheat to achieve something than to tell a truth that might harm you". In my opinion the property market in Bulgaria is nonexisting, artificially held up by fraud and false numbers. And it is a right estimate- who on earth will buy a property in BG ? The building standards are very low, and you will have to pay bribes to get a building permission in this century etc. Exept for cheap land for farming, I cannot understand why people will invest in a country with no spesific attractions and a horrible infrastructure ?

#5
Dirk - 7 Jan 2008 // 19:25:58

CJB,

You did not get me.
I made the remark because BG keeps silent about this.

If I buy something with disguised shortcomings in the west, the sale is cancelled. In BG the government disguises shortcomings... as so much.

#4
CJB - 7 Jan 2008 // 19:21:02

Dirk, come on now. The sentence just below in the same article reads:

" The measure, similar to measures enacted by some other new Eastern European EU member-states, is intended to discourage Western Europeans from acquiring cheap land."

You wouldn't be bitter now, would you? Maybe you should marry some nice Bulgarian lady and buy the land in her name?

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