Year of active market with moderate growth in property prices in the range up to 10% and increased demand in areas around the new subway lines is what representatives of real estate companies expect.
The apartments will rise in price, but in the acceptable range of 3-8%
In 2017 we believe the behavior of shoppers will not tolerate change. Again, we expect high activity on their part, and we hope that the imbalance with marketing will not deepen and also to be compensated by increasing activity of builders and investors. Availability of cash and the acceptable conditions for mortgage lending will continue to be an incentive for buyers, but the profile of the buyer of 2016 will not change notably and therefore will not stimulate the growth of prices.
Price levels of housing that were reached in 2008-2009, according to us will remain in history (reference to 2008 the average housing prices in major cities were higher by 25-30% compared to the present). We find no economic or market conditions for similar growth in prices. Yes, housing will rise in price, but within acceptable ranges 3-8% in 2017 (2016 among the agencies reported rise in the range of 4-9%), and mostly in connection with the characteristics of the property, rather than as a whole.
The brokers expect sales growth to be more significant than the increase in property prices.
Next year uptrend in Sofia and other big cities will continue and will again be driven by the local demand. The current competition between the new buildings (new start and already realized ones) and between the objects on the secondary market will lead to a more diverse picture of supply, which is more able to satisfy demand. This in turn will lead to a further increase in sales volume. They expect sales growth to be more significant than the increase in property prices, where the pace will slow down in to balancing the market and will remain within 10% in 2017
The market will continue to be "edgy".
2017 will pass under the sign of political instability. The market will continue to be "edgy" - part of the investors may hinder the development of their projects, some potential home buyers with credit would postpone purchases due to uncertainty in the future and sellers in the secondary market will continue to expect a continued rise in property prices.
It is expected to have noticeable strengthening of commercial real estate market.
2016 was marked by sales growth, shortening the average time to sell a property by almost half (from 4-5 to 2-3 months) and an increase in selling prices of real estate, which in the last half was confirmed a growth of 5-6 % yoy nationally. Around 10-18% is the rise of prices recorded in the segment of residential property, the increase is observed in the market in big cities - Sofia (reaching even 15% in some areas of the capital), Varna, Burgas, Plovdiv and Stara Zagora.
In 2017 growth forecast is expected to continue, reaching maximum absolute values up to 10% annually. This trend, unfortunately, will dominate again in the big cities, led by capital - Sofia, Varna, Burgas, Plovdiv and Stara Zagora. In smaller cities in the country the trend of fading property market, lowering prices and increasing the period for sale of a property will be maintained.
We expect to have a tangible strengthening of the commercial real estate market. We predict greater competition in the market of office space to rent because of the large amount of newly built office buildings, which will affect the time of rental, and maybe even rental prices.
There are expectations that the resort property sales will grow and stabilize prices, but this trend will again be strongly dependent on many other economic factors.
In summary we expect 2017 to bring stability and growth in sales on the real estate market!
We expect sellers to provide adequate market price levels.
Buyers in Sofia will expand its scope of interest and areas in seeking appropriate accommodation. Despite the fact that in the past 12 months the center, eastern and southern neighborhoods were most desirable, in 2017 alongside them there will be new "hot spots" of activity. Most of them are near the planned new subway lines and areas where infrastructure is actively improved or has more amenities. A stronger interest will be observed in the regions: blvd. "Cherni vruh", "Srebarna" str., blvd. "Shipchenski prohod", Krasno Selo quarter, Buxton, Vitosha quarter, along the blvd. "Vladimir Vazov".
2017 will partly be overcome the imbalance between prices of vendors offer, and those who actually realize sales. In the coming year we expect sellers to provide adequate market price levels.