Housing Market Demand Still Outstrips Supply Foros

Demand continued to outstrip supply on the Bulgarian housing market last year, fuelling a 30-per cent increase in residential prices, local real estate agency Foros said in its 2007 market overview.

Central areas of large regional cities were suffering the greatest under-supply, sending buyers in search of options in the suburbs.

The demand/supply gap has also been identified in the market research of other major property brokers like Address and Yavlena, Dnevnik daily reported on March 5.

Foros said that last year saw a significant pick-up in demand for homes in the vicinity of major lifestyle, office or transportation hubs like metro stations and business parks in Sofia and the shopping districts in Varna.

The agency has forecast a 10-15 per cent increase in housing prices in the big regional cities in 2008 while demand for suburban housing will stay buoyant.

Home purchase transactions rose four per cent year-on-year to 311 600 in 2007, said Foros. About 30 per cent of them were buy-to-let investment and 10 per cent  resale investment.

Foreign direct investment in real estate jumped 44 per cent year-on-year, reaching 2.9 billion euro in 2007. 

Price increase (%) in 2007