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09.11.2011
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Apartment prices in Sofia take off

 09.04.2009


Growth in residential real estate prices continues to show no signs of abating, pushed forward by strong shortages in supply. The difference between supply and demand inSofia is so huge that the average price of apartments has increased by 15.6% in the third quarter of the year only, taking the annual growth to 42% according to the latest survey by National Statistical Institute. Such increases have not been seen even between 2003 and 2005, when the prices in the capital rose with very fast rates starting from much lower levels. Average values in the whole country are surging despite recent slowdowns in the real estate markets around the world. Even after the central bank drew out liquidity from the commercial banks with the increase of their mandatory reserves, demand has remained strong. Several institutions have increased their base interest rates, which set the benchmarks for borrowers' credit costs, but according to experts, the effects of the rises have been limited.


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