What happened to the prices of the new property developments in Bulgaria after the EU accession

The prices of the new property developments in Bulgaria increased with 10% in January and February 2007 after the accession to the European Union. Demand is growing up, while supply is limited. This trend surprised real estate experts, who expected prices for new villas developments in Bulgaria to stabilize after accession. What is the tendency for the next months? The first option according to the experts is that supply could dry out entirely within months, driving the new villas developments in Bulgaria ' prices even higher. Second option is that the market of the new property developments in Bulgaria will settle down as the higher prices demanded by sellers are not the real valuation of the new villas developments in Bulgaria , quoted in the deals.

The real estate deals of new property developments in Bulgaria - €8 milliard per year

The new residential area of new property developments in Bulgaria for this year in the area of the most popular and the biggest Bulgarian beach resort Sunny beach and the area around it is about 1 million sq meters. This was announced by Orlin Vladikov, the chairman of the first combined forum of the International Real Estate Federation (FIABCI) and the Central European Real Estate Associations Network (CEREAN) in Sofia. The theme was Property Markets in Europe: projections to 2010.

The event was attended by more than 120 participants from 39 countries. The short term prognosis of the experts is that the new property developments in Bulgaria – new villas and new house developments in Bulgaria will dominate in Bulgaria. The excellent opportunities for the spa tourism and the new property developments in Bulgaria of the necessary infrastructure were mentioned at the forum. This statement was supported by the statistics – 70% of the mineral water springs of Europe are in Bulgaria.

The other trend is the expansion of the industrial new property developments in Bulgaria , as the country is situated close to the big Russian, Ukraine and North-African markets. It is also expected the West-European countries to move parts of their production to Bulgaria, which causes the growth in the demand for big terrains, factories and storehouses.

During the property boom in Bulgaria in 2004-2005 the number of the sold new house developments in Bulgaria in Sunny beach area is between 17 000 and 18 000. Mr. Vladikov said, he is expecting in 2006 the property market rate of the new villas developments in Bulgaria to be as high as this. The net value of the sold new property developments in Bulgaria for 2006 is above €8 milliard. However the data from the national registry agency for the deals for the same period is €4.5 milliard. The difference is due to the lowest tax survey evaluation compared with the higher market prices of the new property developments in Bulgaria . The greatest share of the new villas developments in Bulgaria purchases is for the residential properties – new house developments in Bulgaria , sold to physical persons. Other statistics, cited at the forum, show that 380 000 sq m residential area, built in Sunny beach during the last year, is still not sold. Based on this, it could be supposed that for some types and categories of new property developments in Bulgaria , it could be expected some drop in the prices or no changes.