Increase In Newly Built Property Supply In Bulgarias Capital

An increase in the supply of newly built property in Sofia was to be expected  in the beginning of 2007, according to real estate agents.

Nearly 24 000 construction permits were issued only for the first nine months of 2005, National Statistical Institute data showed. The number exceeded more than two times the constructions begun in 2004, Darik Radio said.

More than 35 000 new apartments would be offered for sale by the end of 2007, Dark said. Part of them would be sold even as projects and re-sold later at higher prices.

Rise in the prices of newly built property was hardly probable until the end of 2006. If the demand to supply ratio remained unchanged, prices could rise by five to 10 per cent in the first three months of next year.

The profit of construction companies decreased because of the high supply and competition, Darik said.

The price of construction materials would probably rise by six to seven per cent in 2007, but it would not affect seriously the newly built property prices.