Bulgaria Newly Built Houses to Drop by 25% until 2009 End - Report

There is not a big decrease of newly build houses demand, especially of these that have license for using them. File photo

The number of newly built houses in Bulgaria is expected to drop by 25% by the end of 2009 year-on-year.

This forecast has been presented in a report, done by the consulting and investment company Arco Real Estate, the Pari Daily announced.

If the construction rate is preserved during the rest of the year, the newly built houses will be down by 38% in the capital Sofia, 32% in Varna, 31% in Plovdiv, and 14% in Burgas.

The tendency in construction licenses issuing is similar, Arco Real Estate report showed. The only exception the capital Sofia, where for the first quarter of 2009 1340 licenses were issued, compared to 1161 for the same period in 2009.

According to Arco Real Estate, many companies which have licenses delay construction on purpose because they are not certain of the redeemability of the projects. The investment company predicts that this may lead to vacuum and lack of finished houses in 2010.

There is not a big decrease of newly build houses demand, especially of these that have license for using them. There is no risk in buying them, and bank crediting is easier. This is the reason that keep their prices still high.

 

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