At chart we can see the movement of house prices in London, Frankfurt, New York and Sofia from 2008 until present day. During the crisis years, we see significant drop in prices in all of the four cities. From October 2009 the index measuring house prices in Sofia made sudden spike ( a lot bigger spike compare with the other 3 megalopolises). Afterwards we see increase in the house prices in London, Frankfurt and New York and drop in Sofia housing prices. Slowly but steady, in 2014 the indexes of the bigger three cities exceed those in Sofia. We notice something interesting, during the crisis the housing prices in Sofia have jumped .. which is contrary to the logic of the market. Banks have stopped lending mortgages in this period, and that's why the indices in the other three cities have dropped, and why did the one in Sofia have risen? Most likely, Bulgarian citizens have used savings to buy cheap homes. As the crisis has been global and with a particularly strong blow to housing, property prices have fallen sharply and then risen sharply because of the literal "buy-out" of cheap housing.
Source: Bloomberg Pro Terminal
Trader Bozhidar Arabadzhiev
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