The Key Word for 2010 Is Stabilization

The Chief Operations Manager of BULGARIAN PROPERTIES Polina Stoykova was a guest in the morning show of BBT TV on January 10th 2011. The topic of the interview was the trends on the Bulgarian real estate market in 2010 and 2011.

According to Polina Stoykova the key word in the real estate sphere in Bulgaria for 2010 is stabilization. The property price drop continued during the first half of 2010 and in the second part of the year it was minimal – between 3 and 5%. According to Ms Stoykova the key number for 2010 is 10% - there was a 10% average decrease in property prices around the country and the number of deals the company concluded increased by 10%, while in 2009 the average price decrease was 40%. According to Polina Stoykova this indicates stabilization and that the crisis is coming to an end.

On the question whether there is speculation on the property market at the moment Ms Stoykova answered that probably not as property prices are not that low for the speculators who drove the market up in the boom years to return to the market. Moreover, no one expects property prices to rise quickly in the next few years, the goal of the speculation being fast resale. At present properties are bought for holiday purposes and for personal use.

BULGARIAN PROPERTIES’ Chief Operations Manager added that at the moment the Russians are the only foreigners influencing the real estate market in Bulgaria. Their number has increased by 40% in 2010 compared to 2009. Bulgaria really became one of their favorite property destinations as now they are looking mainly for cheaper properties.

On the question how the crisis influenced the quality of the construction Ms Stoykova commented that buyers now scrutinize the quality of the building very carefully and they are much more demanding because the have a big choice. According to her what is interesting is that in the last two years the demand is focused mainly on expensive and on cheap properties.

According to Polina Stoykova there is a decrease in the interest rates of the mortgage loans in the last year as well but people do not yet feel secure about their income and banks have tightened their requirements. That is why people prefer to pay as much as possible with their own finances and to draw out a small loan as a lot of people are in a waiting mode and do not wish to take out a loan just yet.

In conclusion Ms Stoykova added that if the economy continues its positive trend, which she expects to happen, there might be a slight increase in property prices at the end of 2011. This year property prices will remain stable and there will be positive trends.

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