The investment and consultation company Arco Real Estate prognosticated that if the temp of construction from the first quarter of 2009 is kept, the average decrease of newly built real estates in Bulgaria for this year compared to 2008 will be 25%. Precisely, the decrease in Sofia will be 38%, in Varna – 32%, in Burgas – 14%, and in Plovdiv – 31%.

Compared to the quick rise of permissions for construction in the period 2005 – 2007 and their gradual decrease in 2008, the number of permissions for construction in 2009 is drastically lower. The biggest decrease was reported in Burgas, where the number of permissions for the first quarter of 2009 were only 896. Many of the construction companies are intentionally stalling the construction of new estates they have permission for, because the return of investment is not guaranteed. Their stalling can lead to a vacuum and lack of constructed estates in 2010, predicts the agency. According to data from Arco Real Estate, the demand for new homes isn’t slowing down significantly, especially ones with permissions for use. Their number at the moment is insufficient to cover the needs of candidate-buyers.

There is no risk when purchasing real estates in Bulgaria like these, and their purchase is fit for crediting by banks. Because of this, the prices of newly finished apartments with permission for use haven’t dropped significantly, as was expected early this year. Another reason for the stable prices is the client withdrawal from estates finished before 2002, mainly because of the lack of strict quality control. The latter, of course, lead to natural drop of prices of these estates and the re-orientation of customers.