Demand for off-plan homes in Plovdiv
31 January 2008
Off-plan transactions and investment in retail and industrial properties are emerging as the defining real estate trends in Plovdiv, said Europolis, an international company active in realty, project development and real estate management. New residential properties are catching up in terms of asking price with the old housing stock, said Daniela Dimitrova, manager of the Europolis regional office.
The price spread is narrowing as more buyers are in the market for a second home. Demand for off-plan homes will continue, buoyed by the availability of flexible financing schemes, said Europolis.
Newly built homes in Plovdiv have appreciated to 735 Euro/sqm on average, up from 592 Euro/sqm a year ago. In comparison, old housing properties are listed at 850 to 1,200 Euro/sqm, depending on location and quality.
The Europolis forecast is for new homes to add a further 15-20% in 2008. The rapid growth of the retail property segment that started last year will continue with most of the developments due for delivery in 2008.
Europolis expects the excess of supply over demand on this segment to increase. Another 87,000 sqm of retail space are expected to be added to the existing inventory with some projects failing to break even.