Colliers: Real estate prices in Bulgaria to drop by further 10 per cent by July
21 January 2010
The value of real estate was expected to decline by an additional 10 per cent on average by July 2010, Tatyana Emilova from real estate consultancy firm Colliers was quoted by Dnevnik.
The ongoing drop in value in the first half of the year was expected to be succeeded by "stabilisation in the market" in the second half, she said.
In 2009, real estate prices dropped by about 20 per cent on average nationwide, compared to 2008 figures, Colliers data showed.
For 2010 however, experts believed that there would be an increase of demand in the market, augmented flexibility, given the lower prices, and investors were said to be "willing to negotiate," Dnevnik reported.
The implemented amendments in the legislation pertaining to real estate transactions which would outlaw cash payments, were going to have little or no effect on the current market conditions, according to Atanas Darov, CEO of Colliers branch in Bulgaria.
The proposed measure aimed to bring "light and transparency in the industry" but according to Darov, cited by Dnevnik, this would not be the case.
He reckoned that real estate would continue to be sold at prices different from the official appraised values and that cash payments would continue to be the norm.
"If the Government wants real transparency in the industry, it must implement measures whereby the cash flow would be constantly monitored and evaluated" Darov was quoted by Dnevnik as saying.
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