No speculative "bubble" on Bulgaria's Real Estate Market
There may be inadequate prices in some categories of residential areas in Bulgaria, but no speculative bubble to talk about, according to the head of Bulgaria's leading full service real estate company ADIS Ltd.
The increase in prices is expected to slow down around 2007, followed by one year of "wait and see", after which - as the experience of Central European countries shows - the market starts its own development, positive in most cases, says Deyan Kavrakov, CRE, CIPS, CLHMS, CEO of ADIS Ltd.
Kavrakov specified that a deal is defined as speculative when its return on investment, outperforms those in mature markets (8-10%) and is at least 30-40 % and more.
"In the short- and medium-term (8-10 years), there will be a difference between prices in Sofia and Prague/Budapest, but then the gap will gradually start to get narrower. In the long term, prices of residential property in Sofia will get closer and more comparable to those in Prague and Budapest. But this will take one more decade," he forecasts.
Kavrakov recommends that prospective property buyers and investors should first consult well-known experts with long years of experience, practice and references from stable clients to avoid speculative intentions.
There may be inadequate prices in some categories of residential areas in Bulgaria, but no speculative bubble to talk about, according to the head of Bulgaria's leading full service real estate company ADIS Ltd.
The increase in prices is expected to slow down around 2007, followed by one year of "wait and see", after which - as the experience of Central European countries shows - the market starts its own development, positive in most cases, says Deyan Kavrakov, CRE, CIPS, CLHMS, CEO of ADIS Ltd.
Kavrakov specified that a deal is defined as speculative when its return on investment, outperforms those in mature markets (8-10%) and is at least 30-40 % and more.
"In the short- and medium-term (8-10 years), there will be a difference between prices in Sofia and Prague/Budapest, but then the gap will gradually start to get narrower. In the long term, prices of residential property in Sofia will get closer and more comparable to those in Prague and Budapest. But this will take one more decade," he forecasts.
Kavrakov recommends that prospective property buyers and investors should first consult well-known experts with long years of experience, practice and references from stable clients to avoid speculative intentions.
