Slight optimism observed for positive growth in the real estate market next year

Gradual increase in spending on goods and services in the third and fourth quarter is expected

Slight optimism marked the forecasts of major real estate companies in their estimates for 2011. The prices in most segments will become more stable. However, according to Bulgarian Properties Ltd., if the economy keeps a positive development trend and there are no further perturbations, then the market will be able to overcome the shock of the dramatic decline in 2009.

Experts predicted that the volumes of concluded transactions would increase. Besides, from the end of 2011 until the spring of 2012, property prices will follow an upward trend, climbing within 2-5%. "At present, in all segments, the bottom has been reached or is very close, and in some cases we might even have already overcome the most difficult period," stated Polina Stoykova, Chief Operations Manager of Bulgarian Properties Ltd. The company's officials advise buyers to be active since the moment is suitable for purchasing.

According to Forton International's estimates, next year the growth in the supply of office spaces in Sofia will continue. About 430,000 sq m of office buildings are under construction at different stages, 187,000 sq m out of which are scheduled to be completed in 2011. The rental prices for a first-class office space in Sofia downtown are expected to be within the range of €11-12 / sq m a month, while on the main boulevards these offices will be rented for around €10 / sq. m. Therefore, we can expect about 20% increase in the levels of utilisation of the new office space compared to the figures of 2010, indicated Forton's officials.

The company forecast a stabilisation of consumers interest and gradual rise in the public spending on goods and services in the third and fourth quarter. Introduction of new key international brands on the Bulgarian market is also forthcoming. The competition of retail chains for goods in circulation will be the most significant one. In 2011, rentals of first-class logistic and industrial areas in Bulgaria are expected to drop to the current levels in Central and Eastern European countries, while the interest of tenants to expand outside Sofia towards larger regional centers. As regards the investment market, Forton's expectations are more optimistic compared to the preceding 2009 and 2010.

Text and photo: klassa.bg

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