Small, "fast moving" buildings replacе large projects

2011-08-18   |  Capital newspaper

New construction in Sofia continues to decrease and started buildings have less apartments, housing statistics reports quarter after quarter. Recently built brick mastodons are replaced by small buildings with one or two entrances and 10-15 apartments.

The reasons are different – there are no buyers, entrepreneurs do not want to risk and at present banks do not tend to finance large projects. However, the direction is one - increasingly limited supply of new homes. And this after years of boom of Soviet-type blocks and brick buildings is quite normal.

Indeed, it was confirmed by the register of building permits published on the website of Sofia Municipality' Architecture and Urban Planning department – large projects are disappearing from the market.

From the beginning of the year until July no building with an area of over 10,000 sq.m., which has received a building permit. The approved projects are with a total build-up area of around 1,000 sq.m. – 1,500 sq.m and few projects are with a total build-up area of 4,000 sq.m. - 6,000 sq.m. - one of them is located in Sofia district - Druzhba quarter, one in Mladost quarter and one in Bakston quarter.

The trend is also confirmed by the data of the National Statistics Institute (NSI) for issued building permits. Since 2009 not only less buildings have been built, but they are also smaller and with a limited number of apartments in them. "Investors are waiting. Change happens depending on demand and these things are normal in time," said the NSI expert Stanka Dimitrova.

The major reason for the decreasing construction volumes is also more difficult receiving of funding. The rising interest rates of bank loans and difficult sales forced many developers to rely mainly on their own resources. Even those who take out a loan try to provide at least a half of the capital. All this radically changed the model of construction and housing sales.

"Years ago, the construction of large buildings and complexes was launched easily, it was enough to have a suitable terrain. The apartments were sold off-plan and the construction projects were financed by the so received money. So the large scale was not a problem, on the contrary – the developers were looking for maximum built-up area from the plots in order to sell more apartments, said the Chief Operations Manager of real estate agency BULGARIAN PROPERTIES Polina Stoykova.

According to her large projects are doing well when the housing needs have to be met quickly. Such was the Soviet-type construction in major cities during the socialism as well as during the boom on the real estate market after 2003. But now the situation is the opposite – demand is weak, there are no off-plan sales and now small projects are in demand. For developers they provide faster completion of the construction, the sales and the result of the investment.

  Read more news

Share
Beach Villas on the Bulgarian Black Sea Coast
Searching for your own place in the sun?
Explore our selection of lovely houses and villas situated in the beach resorts and in the villages nearby! Prices with no competition in Europe!
See More

Îůĺ Íîâčíč

LATEST REGIONAL NEWS
Street Food & Art Festival in Burgas is a New Concept for an Urban Festival

Street Food & Art Festival is a new concept for an urban festival, its organizer Nikolay Todorov told Focus Radio.

The festival, held with the support of Burgas Municipality, is taking place in Burgas. More than 15 of the Best Street Food culinary artists in Bulgaria have been invited, Todorov said. "We are talking about mobile kitchens, kitchens on wheels, caravans, campers, truck... read more

13 August, 2019
LATEST REGIONAL NEWS
Archeologists unearth church from 6th century near Gabrovo

An early Byzantine church, 20 by 10 meters in size, made from rock blocks and brick layers, with a floor lined with ceramic tiles has been discovered by archaeologists.

It has two entrances on the south and west sides and an interesting altar section, as it had benches where clergymen were sitting, as well as a bishop's throne in the central place, Professor Hitko Vachev said. He a... read more

13 August, 2019
LATEST REGIONAL NEWS
Seaside Garden in Varna turns into large-scale arts and crafts exhibition

For the 23rd time the International Fair of Crafts and Arts “Bulgarika” will become a venue for a big number of artists and craftsmen. In the period August 1– 21, some of the best artisans in the fields of fine and applied arts, crafts and music will participate in it. Traditionally, the audience will actively participate in the fair as they will be able to take part in crafts or arts workshops or... read more

13 August, 2019
LATEST REGIONAL NEWS
Staro Zhelezare village once again hosts Street Art Village Festival

Until the end of August, the village near Plovdiv is once again hosting Staro Zhelezare Street Art Village Festival.

The village itself has no more than 400 inhabitants. Every year the people behind this project – artists Katarzina and Ventsislav Piryankovi and students of theirs from Poznan, Poland, transform the place, painting and drawing on the walls of houses and fences.
... read more

13 August, 2019