|
House Prices Increase, Bulgaria Reaches 31%
House prices recorded an average increase of 8.7% in late 2004/early 2005 worldwide, shows data of the International Real Estate Federation (FIABCI) and ResearchWorldwide.
Go to Web Site
|
|
|
|
House prices recorded an average increase of 8.7% in late 2004/early 2005 worldwide, shows data of the International Real Estate Federation (FIABCI) and ResearchWorldwide.
According to their survey, which monitors 23 countries on a monthly basis, South Africa at 27.8%, Hong Kong 21.6%, Spain 17.2%, New Zealand 16.4% and France 16.0% top house price annual percentage change list at present. China, Norway, United States, United Kingdom and Sweden complete the top 10 rankings.
Germany and Japan are at the bottom of the ranking with a registered drop in house prices. For the sake of comparison, Bulgaria recorded an average increase of 31% for a 12-month period (Q4 2003 - Q4 2004).
Ignoring calls for "bursting bubbles" the man-in-the-street continues to demand residential property to buy not only in Bulgaria, said Deyan Kavrakov, President of FIABCI-Bulgaria and CEO of ADIS Ltd., Bulgaria's leading full service real estate company. Investing in "bricks and mortar" continues to be more attractive than securities and bonds, he adds.
Experts define a deal as speculative when its return on investment outbounds those in mature markets (8-10%) and is at least 30-40 % and more. There is no bubble on Bulgaria's property market, but due to its stage of development there may be inadequate prices in some segments, Kavrakov commented.
Prices are expected to slow down around 2007, followed by one year of "waiting and watching" and - as the experience of Central European countries shows - the property market starts its own development, positive in most cases, according to him.
Kavrakov forecasts the price increase of residential property in Bulgaria to be a double-digit figure in percentage in 2005, but considerably smaller than the previous year.
Bulgaria appears there as the typical example for an explosion of interest in Eastern Europe with prices startlingly cheap, especially for new homes. It gives several examples of Bulgaria property prices along the Black Sea coast quoting a two-bedroom new house outside sea resort Varna at the cost of GBP 70,000 and a maisonette almost on the beach in the same region offered for GBP 95,000. Even cheaper properties can be found in high-density resorts being built close to the sea coast.
Relatively low Bulgaria-property prices such as these, along with estate agents' talk of 40% rises per year, have triggered worries of a price bubble. But analysts suggest most buyers just want a low-cost holiday home or a long-term investment and that, so far at least, the high volume of ongoing building has not undermined price gains made by early buyers.
However, the ratio of sales and re-sales in Bulgaria has been on behalf of the latter, suggesting the majority of buyers keep them for a length of time. Some UK-based agents believe a lot of their investors are people who have bought in Western Europe where prices have reached a peak and are now looking at the next best emerging market.
The return of stability to the Balkans and the opening up of Eastern Europe has bought vast new swaths of property into the marketplace.
|
|
|
|
|
Copyright © 2003 - 2012 URL.biz. All rights reserved. |
|
