Plots are offered for pre-crisis prices

Owners of land for construction are trying to sell it for prices close to those before the crisis.

Demand remains weak and many buyers want lower prices. At the same time the offers of the sellers are very high

In fact, they have the same level as it was three years ago. The reasons are clear - many construction companies bought during the boom time plots at very high prices, said the brokers.

The demand is for plots at a price around € 100 per square meter suitable for constructing a residential building or a house. Buyers prefer small plots but with year round access. The same is the situation for industrial sites. There the interest is in the area of 2-3 thousand squares.

Sometimes in negotiations sellers are willing to decrease the price and often it reaches 30 percent.But this can happen only when real interest is shown by investors. Segment of the housing market related to land development will be the latest that will emerge from the crisis- predicted brokers. The demand for land for urban construction is very cautious.

Investors are more willing to enter primarily into contracts with retreated right for compensation or only with partial payment,because they don`t want to close financial resources.

Currently the investments are primarily in projects for small residential buildings with an area not more than 2-3 thousand square meters. This trend will help investors to sell homes faster and reduce the risk from unexpected loss.

An exception to this trend is the Black Sea, where there are larger projects, but there is demand from the Russian customers

With the exhaustion of the supply of quality housing in major cities over the next few years, the interest of entrepreneurs to purchase land for construction is getting higher. There will be, however, a sharp increase in transactions in the segment, having in mind the fact that two years ago there was no demand for plots of land.

Most of the construction companies have their own land for building in Sofia, and so demand is very weak. This is another reason for the weak demand.

The most interesting properties are small plots, suitable to build 20 to 30 homes as the sale aims to recover at least the half of the builder`s investment, made for to starting the project. Buyers prefer property on established locations with quality infrastructure.

Currently the benefits that developers give to the owners of plots have fallen with about 30 %.