Bulgarian realtors: 10% of residential demand is speculative
The real estate market at present
Over 10% of the demand for new residential properties in Bulgaria is speculative, developers said in the sidelines of the Construction and Investment Forum underway in Sofia. Residential properties will gain 15% on average in 2006 with the market in some parts of the country appreciating by as much as 20%, said Dobromir Ganev from real estate agency Foros. The national statistical authority recorded a 4.7% increase in the value of residential properties in the first quarter of 2006. The residential market in Bulgaria has huge potential, said Clair Satchi from the Engel East Europe fund. Only 1.5 homes per 1,000 population are placed on the Bulgarian market annually, said Satchi, contrasting that rate with Spain and Ireland with 15 homes per 1,000 population. Sofia, Varna, Burgas and Bansko are the Bulgarian cities with the most expensive residential markets, said Ganev, adding that the residential markets in Plovdiv and Ruse are underpriced.