There are many UK property buyers with investments in emerging European markets such as Bulgaria and Romania. During the property boom of the last decade there was a marked increase in British Property buyers buying properties in this region of Europe. The recent global recession has also had a huge impact on property prices in these countries. According to property analysts residential property prices in Bulgaria and Romania are set to continue in a steep decline in 2009. While those property buyers and investors looking for a bargain may be able to benefit from the steep fall in property prices, by and large this is bad news for a large spectrum of the property market.
Analysts expect prices in Sofia, the capital of Bulgaria to fall by up to 10 to 12 per cent. Similarly property analysts predict an overall average fall of up to 20 per cent in Bucharest during the coming year. All other areas in these countries are expected to witness a similar decline in property prices.
Property experts believe that the trend of fall in property prices will continue throughout the year. Property analysts do not expect to see positive increase in prices till as late as 2010. Property analysts expect businesses and property investors to adopt a wait and see approach and be more cautious in their approach.
The main factor that is driving down the property markets in Bulgaria and Romania is the withdrawal of foreign investors, but they are also suffering from tight credit conditions that cut into funding options for local investors.
Studies and news on the property markets in the UK, Ireland and Spain have already reported that the market has hi t its rock bottom. In these regions a recovery may be expected sooner.
These real estate markets are seeing signs of increased activity as investors show interest in finding opportunities even before confirmation of the market reaching a turning point. In places like London and Spain, some analysts have said that the overall confidence has already started to improve. The property market here may start improving sooner than 2010 as investors will start looking to create new opportunities to maximise investments.
According to some property analysts the current crisis has already started to subside in markets such as London and the property prices are expected to start improving in the coming months. Although signs of improvement could start in the coming months, a complete recovery of the property market will only be possible a couple of years after the economy starts to show signs of improvement. This is based on its historical research into the behaviour of the property markets which shows that recovery in the property market usually takes two years after the economy has started to improve.