Number of rental contracts up by 43% in a year
"The number of rental contracts increased by 43% last year, compared to 2009," announced Tsvetelina Taseva, Executive Director of Address Real Estate Agency. According to her, the reason for this high growth was that buyers gave up purchase deals because of the uncertainty at a time of crisis. "Moreover, many young people migrate to big cities and no longer borrow to buy real estate property, but rather rent apartments," Taseva commented. The expert also voiced expectations for a slight reflux of tenants because of the legal amendments stipulating that annual tax on property rental must be paid in advance. Nevertheless, she projected a further growth in 2011.
At the end of 2010, real estate sale deals registered a 7% increase, compared to the previous year and the main reason for this was the greater availability of bank loans. As for real estate properties acquired by financial institutions and their marketing, Taseva commented that at the end of 2010, banks tended to use the services of real estate brokers or establish their own companies in order to sell these properties. Address company expressed optimism that together with the financial institutions the agency would be able to offer such real estates on the market at attractive prices. The agency forecasts a 10% growth of sale deals and about 20% increase in the number of rentals.
In their analysis, the experts from Bulgarian Properties are also optimistic that in 2011 the domestic property market will overcome the shock from the dramatic slump if the economy continues to develop well. According to Bulgarian Properties sources, the price levels will remain stable and the volume of transactions will increase.
Text and photo source: klassa.bg
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