The global credit crunch, which originated in the US and later swept the rest of the world, will no doubt have an impact on Bulgaria, but it will be in a rather indirect way, said Tatyana Emilova, Colliers International key property and sales manager.
Some changes are unavoidable, according to Tatayana Emilova. Investors will be much more careful about where they are putting their money, she added.
The market will be more selective and only good quality projects will be able to become highly successful. This will be true both for the local and international markets.
Property prices in Sofia have registered a significant hike over the past several years. The average price in Sofia gained nearly 30% to 1,000 euros/sq. m.
Prices in Sofia and in some resorts in Bulgaria are surpassing those in some countries in Western Europe.
Despite the rising values, analysts expect, demand for properties, especially in gated complexes, to continue to rise. Clients, however, will be looking for quality rather than bargains.
The sector's development will also depend on improvements to the infrastructure, which is currently lagging behind EU standards, Ms. Emilova also said.