Land prices fell 30% in some areas of Sofia

The economic crisis has affected long term investment and construction plans in Sofia and the surrounding area, affecting the market, causing a slump in value of up to 30 per cent in some regions, according to sofiaecho.com

Given the actual location of the parcel, price deviation varies. The southern boroughs of Sofia, or the ‘elite’ boroughs, Dragalevtsi, Boyana and Simeonovo, have traditionally maintained higher values through higher demand and thus registered a smaller drop, amounting to 10 per cent. The situation, however, is considerably more precarious in areas like Vrazhdebna and Bojourishte. Locations around the Sofia circular road, around Krivina and the area between Hemus and Trakia motorways, where before the crisis land could be purchased for 120-150 euro for a sq m, now see values of as little as 70 to 80 euro per sq m.

According to surveys from different real estate companies, demand for real estate in and around Sofia is currently next to nothing. When mortgage crediting is restored to pre-crisis levels and people are able to afford buying a house, only then can we expect an upsurge in business.

Parcels are a peculiar segment, as they can be used either for development or long term investments. In the first instance, the active party are supposed to be the construction companies, but given the contemporary market conditions, they are in a bad state. The latter case – long term investment – currently, simply doesn’t exist.

The source this material was taken is: http://sofiaecho.com/2009/04/10/703556_land-prices-fell-30-in-some-areas-of-sofia-in-2008–report

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