Bulgaria Capital Real Estate Prices to Fall 12% in 2009 – Jones Lang Lasalle
Real estate prices Bulgaria’s capital Sofia will drop by 12% in 2009, while those in the capital of neighboring Romania will see a 20% plunge, according to a report of Jones Lang Lasalle consultancy.
Both the Bulgarian and Romanian residential market are suffering a slowdown, which however will be marked by sharper slides in Bucharest, according to the agency.
It comes to confirm analyses, which attribute the stalemate in Bulgaria’s real estate market to the withdrawal of investors and restricted financing, and forecasts that entrepreneurs will go through a wait-and-see period before unfreezing their projects.
In another research the consultancy says that markets such as Ireland, the UK and Spain are seeing signs of increased activity as investors show interest in finding opportunities even before confirmation of the market reaching a turning point. In London and Spain, where confidence is improving, bid prices for properties have been surprisingly strong.
Jones Lang LaSalle says its historical research into the behavior of the property markets shows that recovery in the property market lags improvements in the economy by as much as two years.