The participants in the real estate and construction market should reduce high profits to reasonable limits, Sofia Chief Architect Peter Dikov told BalReAct - Reaction to Crisis conference in Sofia on Friday.

Lower profits will guarantee vigour of the business under crisis conditions, Dikov added.

He underlined the need of a more efficient information campaign among land plot owners to make them understand that the high prices they expect for lands without infrastructure are unrealistic in the subsequent years.

According to Dikov, the adoption of the new spatial development plan of Sofia will lead to much better opportunities for the territorial development of Sofia and, hopefully, to lower prices because of the bigger choice.

Dikov recommended that the state finances infrastructure projects and the construction of schools, hospitals and polyclinics in particular, which will support the construction sector during the crisis. The Chief Architect proposed also to reduce taxes on real estate transactions.

According to Bozhidar Neychev of PriceWaterhouseCoopers, a positive effect from the crisis will be a decrease of the rate of profit in all segments of economy rather that in the real estate sector only.

Valeri Leviev of Elta Consult said that private and risk investors disposing of funds will be the main buyers on the real estate market and the significance of the Bulgarian investors in the market will increase further. Investments of Bulgarian companies posted 37 per cent growth for 2008, Leviev added.

Source: BTA