Moderate construction activity and price growth up to 10% which has been going up for the past two years and is expected to continue to go up in 2017. Expectations are that the sector will remain stable in big cities.
After the booming property market in 2016 the expectations in the sector for the coming 12 months are more like stabilization and moderate construction activity in Sofia. The forecast for market development in major cities outside the capital is positive. Yet economic processes and migration to the city suggest it will continue to be the most active market in 2017 as well.
According to experts, the new investment housing projects will be mainly in Sofia, Plovdiv, Stara Zagora, Burgas and several other major cities and will continue in 2017, but some investors may hinder the development of their projects due to increased risk of the investment.
In Sofia, they expect prices to pick up again, but not more than 10%.
According to agencies in the housing sector there will be a return of those players who have waited more favorable environment for their projects, but also there will be many new players, including such without experience in the investment process. Unusually there are many are requests for plots for housing constructions in the capital from investors and builders in the major cities in the country. This is a clear indicator of their expectations for the housing market in the near future - namely, relatively predictable market in Sofia and with a higher risk in other major cities of the country, say experts.
Properties in the capital city
Experts unite around the idea that the processes which started in Sofia in the recent years and particularly during the past 2016 will continue to evolve. "The capital will continue sustainable development, determined by fundamental factors - internal migration, low unemployment, new jobs, investments, almost twice higher income compared to the national average concentration of highly paid civil servants and others.", comment brokers. According to them, in the absence of external factors such as foreign buyers or large-scale investment in new industries, respectively detection of high-paying jobs - the processes in other major cities of the country is usually delayed by several years. For small and medium-sized cities with 50 000 inhabitants investments process is close to the "freezing".
"In Sofia, we expect prices to pick up again, but not more than 10%," commented experts. In their opinion pressure on greater price increases, will prove highly anticipated new projects on the one hand, and uncertainty in potential buyers, prompted by the political crisis and a possible economic slowdown. Sellers in the secondary market will continue to expect a rise in property prices, but to a greater extent will have to comply with new projects and off-plan sales.
Investors should prepare preliminary studies before starting new projects, especially larger ones.
Expectations of realtors market development in Sofia in 2017 were to be similar to the past two years. Dynamic market, which however will have more choice, especially for new housing. The past year we witnessed the highest growth since 2008 in starting new residential projects, emphasized realtors.