Many of the housing projects under development in Bulgaria will be halted or never completed in 2009, while others will stay in the pipeline, forecasts Atanas Garov, executive director of property consultants Colliers International. Buyers are opting for homes in an advanced construction stage in order to avoid risks. However, the market has gathered inertia and so new projects will continue to come out, according to Garov. Shemes started in the past two years which have attracted financial support will be completed.
In a bid to make up for the harder access to mortgage loans, investors are being more flexible, extending the payment period to three years. We will see in the spring whether the new tactics will manage to thaw the property market, Garov said. However, property prices will continue to fall, extending a trend that began at the end of 2008. Colliers expects a 10-12% decrease on an annual basis.
Renting stepped into the spotlight after banks toughened mortgage loan requirements, jacked up interest rates and increased co-funging to 50% of the cost of the property.