Property market in Bulgaria to recover in about one - one-and-a-half years

The European economy and, respectively, the real estate market are entering the next phase of the crisis, experts from consulting company Jones Lang LaSalle believe.

“In the beginning of 2010, people were hoping that the effect of the downturn would diminish and gradually disappear. However, recent months have shown that problems still exist,” commented Dermot Charleson, Jones Lang LaSalle’s European Valuations Advisory Team Director. According to him, countries like Italy and Spain will feel, over the next six months, the effect of the large-scale reduction in expenditures undertaken by their governments and this will inevitably affect the property market in the region. The restrictive measures and insufficient GDP growth in the Eurozone will hamper the timid recovery which has started.

“The anti-crisis measures of governments will strongly affect consumption which will, in turn, directly reflect on trade centres,” believes Michael Haddock, Director of Capital Markets Research for CB Richard Ellis in the Europe, Middle East and Africa region. According to him, first-class trade centres, offering a variety of foods and clothes, will be doing quite well, while those with a more limited commercial supply will be at risk.

“In Bulgaria, we expect the real estate market to recover only after a year or a year and a half after this happens worldwide,” Mihail Chobanov, Executive Director of Bulgarian Properties, commented for Klassa. He added that the decline in property prices will continue until the end of the year at a different pace for the individual segments. The same opinion was expressed by Tihomir Tsakov, Manager of real estate agency Aristo. According to him, slow recovery in Europe will directly reflect on the domestic market.

Text and image: klassa.bg

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