Most of the real estate markets in East Europe leave the crisis behind. The rates and rents of all sector in the industry in Bulgaria and Hungary are expected to grow in the next 12 months.
The real estate rates in Czech Republic are expected to grow too, but the expectation for the renting rates are not clear in all sectors. In Romania is expected slowing of the selling rates growth and decline of the renting rates.
The four countries have quite different economics, but the expectations are for economical growth in the next one year. This does not include Bulgaria because of the unstable political situation and bank sector.
The searching grows in all sectors in Bulgaria, Hungary and Romania, especially for offices in Bulgaria and for trade spaces in Hungary.
In Bulgaria and Hungary is expected growing of the renting rates in the office, industrial and trade sectors in the next 12 months. In Czech Republic the prognosis in this sector is for decline.
The real estate market in Bulgaria turns its movement through the bottom from downside to upside, but we still can not talk about new price levels.
As expected, the situation is firs felt and stronger in the big cities and the prestigious areas. In the luxury segment we can already talk about new price levels.
Along with this there are towns and villages where the rates continue to fall. The expectation is the autumn to give additional positive movement on the property market, as now it can be described as “complicated”.
It seems that the better economical situation in Europe affects the Bulgarian real estate market. This market is not affected by the political but the economical factor.
There is a key word for every merchant, and this key word is called crowd. The intensive human traffic on some streets, bus stops, subways and malls in most cases means good sells and the properties there attract the merchants. Since some months the Sofia’s street Vitosha is such a place again.
After months of reconstruction, dust and competition with the new malls, now the most prestigious street in Sofia is alive, full with shops, bars and people. Accordingly with the more reasonable rate rents, logically many big brands returned their look to this street.
At this moment the big brands don’t have much success. The free spaces on the street that cover their requirements are quite limited. But there are some examples. After H&M in the last year, in this year brands like Sport Depot, Punto and United Colors of Benetton opened shops on the street.
Like most representatives of the brands will say, the effect from opening objects on this street is mostly for the image, as Vitosha avenue becomes the most prestigious place in Sofia again.