New construction in Bulgaria decreased by 25 percent, not the old search
According to data of the consulting and investment company Arco Real Estate, if they maintain the same pace of construction of the first quarter of 2009, this would mean a decline in the number of new dwellings in 2008 compared with 25 percent. For larger cities, these rates would be – Sofia: -38%, Bulgaria: -32%, Bourgas: -14%, Plovdiv: -31%. New homes in SG. 2007 2008 Total Bulgaria 18 864 20 924 Sofia 3 431 3 752 Varna 3 471 4 298 Burgas 5 158 5 305 Plovdiv 1 529 1 532 The same can be observed from the building permits issued in Bulgaria comparing the number in the first quarter of 2007 during this same period of 2009 homes in New pc. for the first quarter of 2009 Total 3 897 Sofia Bulgaria 580 Varna 727 Burgas Plovdiv 1136 There are 265 a sharp increase in building permits from 2005 to 2007 and then gradually decreased in 2008 to reach a sharp decline in 2009, where permits issued in Bulgaria are almost 2 times less compared to 2008 In this sense, the dynamic is Bourgas where the licenses issued for the first quarter of 2006 were 4066 and for the same period in 2009 were 896. Many construction companies do not intentionally start the construction of new properties that already have permission to work, since there is no certainty for return on investment. This out of their country may lead to depression and lack of housing novozavarsheni in 2010 is not seen a big drop in demand for new housing, especially those with permission to use that are currently insufficient in quantity to meet demand candidate buyers. There is no risk in their acquisition and they are fit subject for credit from banks in Bulgaria. Therefore the prices of new apartments completed with the permission of use is not drastically reduced as expected at the beginning of the year. Another reason for maintaining the prices ebb and unwillingness of customers to buy an old building which was completed before 2002 because of lack of construction control, thermal insulation and not so good quality of construction in this period, leading to a natural decline in the prices right these properties and redirecting customers to the new housing.
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Finance