Home Prices to Fall by 25% in 2009?

Home prices in Bulgaria will fall by an average of 25% in 2009, an analysis by Aristo agency reveals. The plunge may reach up to 30% in H1, experts from the agency say.

„The need to sell urgently as well as the tightened requirements for crediting will be dominating the market. This is likely to be the case until the situation stabilizes and gets easier to foresee, which will not happen before H2," experts told Profit.bg.

The number of home property transactions may fall by up to 30% and return to levels from 2004-5, or around 200 000-240 000.

Aristo experts said they expect the number of newly built homes ready for occupation to plunge by 40%.

As creditting becomes more difficult to obtain, there will be less projects in the large cities and resorts.

„The rising costs of construction and the lower selling prices in towns of less than 100 000 residents make new project development there unprofitable", the report also states.